Ranking: Illinois 10th worst state for getting ahead
Illinois lags both the nation and the Midwest on key indicators of social mobility. The state scores poorly on entrepreneurship, economic growth, institutions and the rule of law.
Low-income people in Illinois have a tougher time getting ahead compared to those in any other Midwestern state, and ranks 40th in the nation, according to an Illinois Policy Institute report.
The report analyzed the four pillars of social mobility:
- Entrepreneurship and economic growth
- Institutions and the rule of law
- Education and skills development
- Social capital
Illinois scores below average on all four indicators. Low social mobility prevents Illinoisans, especially the economically disadvantaged and minorities, from accessing opportunity.
Illinois’ barriers to social mobility are largely man-made. They include a burdensome regulatory environment, high taxes, housing restrictions, a low-quality judicial system, weak business enthusiasm and innovation. This means they also have man-made solutions.
Business dynamism in Illinois is struggling in part because the number of companies is shrinking, with a growth rate of -1.1% in 2023. High-profile companies that have fled Illinois in recent years for friendlier business climates include Boeing, Citadel, Guggenheim and Tyson Foods.
Illinois has the fourth most burdensome regulatory regimes in the country with about 282,000 instances of restrictive language preventing people and businesses from doing this on the books. Only California, New Jersey and New York have more. Illinois ranks second-to-last in approving housing permits, with just 1.4 approved annually per 1,000 citizens.
Illinois is also home to one of the top five most burdensome tax codes, with some of the highest corporate, property and sales taxes in the country. With such an onerous economic environment, not to mention high levels of perceived institutional corruption, it is perhaps no surprise that Illinois lags behind the nation and its neighbors in social mobility.
The report recommended numerous steps Illinois lawmakers can take to improve across all four pillars of social mobility. They include cutting over 100,000 instances of restrictive regulatory language, improving housing affordability through permitting and zoning reform and eliminating barriers to opportunity by adopting a more robust sunset review process and universal licensure.
Since Illinois’ barriers to social mobility are man-made, there are solutions. By taking even modest reforms lawmakers can improve the state’s social mobility nationally and regionally, and give more businesses, families and individuals the chance to thrive in Illinois.