Higher-income Americans tend to have larger and more economically advantaged social networks, creating another way that financial inequality can reinforce itself, according to a new Cornell-led book.
Researchers examined more than 100 measures across dozens of data sets covering more than 1 million people for "Friends and Fortunes," an open-access book by Benjamin Cornwell, Cristobal Young, Barum Park and Nan Feng.
The authors found that people earning at least $500,000 a year were about twice as likely as lower-income people to report having three confidants and two-and-a-half times as likely to belong to multiple groups.
Top earners were also six times as likely to have several college graduates among their close contacts. On average, their friends earned 85% more, were more than twice as likely to hold college degrees and occupied more prestigious professional roles, the researchers found.
The book argues that those differences can affect access to information, referrals, advice and opportunities. A professional connection can help someone learn about a job or investment, while people with fewer well-positioned contacts may never encounter the same openings.
Researchers said the pattern reflects structural barriers as well as personal choices. Workplaces often recruit through employee referrals, while the cost and location of community spaces can shape who has opportunities to form new relationships.
The authors describe economic resources and social connections as mutually reinforcing: money can provide access to groups and spaces where valuable relationships form, and those relationships can help people gain additional economic advantages.
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