The Commission on Social Mobility will consider why there appears to be little movement between social groupings in the UK, and how this can be changed.
It will be chaired by Martin Narey, the chief executive of children's charity Barnardo's and chair of the End Child Poverty Coalition.
Liberal Democrat leader Nick Clegg said: "I want to know why it is that Britain's low levels of social mobility compare unfavourably with almost every other developed nation.
"Children should be free to realise their aspirations and not be held back by the circumstances of their birth."
Six members will be appointed to work with Narey on the commission, which will be expected to report to the Liberal Democrats by the end of 2008.
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