Income mobility is the ability of individuals to climb the economic ladder. There is a common fear that in highly unequal societies, someone born in the poorest class will remain trapped there.(1) This has motivated numerous calls for more government intervention in the economy, notably by increasing funding to education or social policies.(2) Until fairly recently, little consideration was given to the role of pro-market reforms in promoting income mobility. The present study highlights their importance by using the case of Alberta’s economic reforms during the 1990s, in which reduced government spending led to increased income mobility among the poorest segment of the population.

Economic Freedom Creates Opportunities