UHERO Briefs
Wealth by Association? How Social Networks Drive Inequality in Hawaii
UHERO BRIEFS ARE CIRCULATED TO STIMULATE DISCUSSION AND CRITICAL COMMENT.
The findings and recommendations are those of the author(s) and do not reflect the views or official positions of UHERO, the University of Hawai’i, or any funding or supporting organization.
Studies show that economic connectedness, a poor individual’s share of wealthy friends, significantly impacts economic mobility. Hawaii ranks highly in this metric compared to other states, but disparities exist in local schools. Private high schools have much higher economic connectedness than public schools, driven mainly by students’ exposure to wealthy peers. To improve connectedness, policymakers should consider strategies such as housing voucher programs, which have been shown to improve mobility for low-income families, paired with evidence showing that reducing regulatory constraints on homebuilding can improve housing affordability. Implementing such strategies could create a more opportunity-rich future for Hawaii’s low-income residents.