Illinois’ social mobility is worst in Midwest

Illinois’ social mobility is worst in Midwest


Illinois placed 38th nationally for social mobility. Its rank was pulled down by economic problems and corruption in its legal system.

It’s harder for Illinoisans to improve their economic and social situation than for anyone else in the Midwest, according to new rankings by the Archbridge Institute.

Illinois was ranked 38th overall in social mobility, placing it in the bottom quarter of states. The state’s ranking improved two places from the 2023 edition of the report, when it was 40th.

The state’s ranking was driven down by low economic growth, burdensome regulations and persistent corruption by elected leaders. Adopting policies to address these problems would bring more opportunity to the state, especially to those who need it most.

Five Midwestern states were in the top quarter nationally. Ohio at No. 30 had the Midwest’s second-lowest ranking.

The Archbridge Institute report measures “social mobility,” which it defines as “the ability to better oneself and those around them.” Social mobility has four components: institutions and the rule of law, entrepreneurship and growth, education and skills development, and social capital.

Illinois’ lowest ranking came on institutions and the rule of law, where it was 49th. Illinois was 49th on predatory state action, which measures corruption perceptions, a state’s civil asset forfeiture laws, and total fines and fees. It was 40th on judicial system quality, which considers whether people have access to justice, tort costs as a percentage of gross domestic product, and the quality of the state’s liability system.

From 1983 to 2023, Illinois averaged one conviction of a public leader for corruption in federal courts per week, for a total of 2,310 during that time. Former Illinois House Speaker Michael Madigan was sentenced last year to 7.5 years in prison for his corrupt dealings with the ComEd utility company.

Illinois also scored poorly on entrepreneurship and growth, placing 45th overall. The state’s regulatory environment as well as its taxes and costs both ranked 41st. Illinois was 35th in business dynamism, which examines whether firms are starting and growing, the labor force participation rate, and the number of inventors.

One of the biggest factors weighing Illinois down is its enormous regulatory burden. The state has the fourth biggest regulatory burden, with over 282,000 rules, more than double the average of 135,000. Illinois issues the second-lowest number of permits to build housing among states, with only 1.4 per 1,000 people. The national average is more than triple at 4.3 per 1,000.

Illinois was right in the middle for education and skills development. One proven way to boost test scores, especially for low-income students, as well as the state’s education ranking overall is to opt in to the Federal Scholarship Tax Credit program. This would bring school choice and more funding to Illinois’ public, private and homeschool students.

Social capital in Illinois was ranked 27th. One major factor likely impacting this is the flow of Illinoisans leaving for other states. The state has lost over 420,000 residents since 2020. Nearly half of Illinoisans would leave if they could, according to surveys.

To improve social mobility, Illinois state and local lawmakers need to focus on implementing pro-growth policies and removing barriers to growth such as unnecessary regulations and high taxes. They could do so by:

  • Reducing the number of burdensome regulations from 282,000 to 150,000 (still above the national average) to create more space for individuals and businesses to innovate.
  • Improving housing affordability by making it easier to build through zoning and permitting reform.
  • Opting in to the Federal Scholarship Tax Credit program.
  • Reversing persistent outmigration by improving low economic growth and reducing the state’s high tax burden, beginning by lowering the highest property tax rate in the nation.

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