Poverty and Deep Poverty
Leaders: Linda Burton, Kathryn Edin, David Grusky
The Supplemental Poverty Measure (SPM) reveals substantial post-1970 reductions in poverty under a constant (i.e., “anchored”) threshold, but this trend masks worrisome developments at the very bottom of the distribution. Although the overall SPM has trended downward since 1970, the SPM for households with less than half of the anchored threshold level (i.e., “deep poverty”) has remained stable since 1968. Even more worrying, the most extreme forms of poverty, such as living on less than $2 per day (per person), have in fact increased over the last two decades. The main tasks of our Poverty and Deep Poverty RG are to describe trends in poverty and deep poverty, to assess the effectiveness of current anti-poverty programs, and to examine the likely payoff to introducing new anti-poverty programs. We present a sampling of relevant projects below.
Frequent Reporting Project: Why are unemployment statistics reported monthly whereas poverty statistics are reported only once a year (and with such a long lag)? The CPI is hard at work solving this problem.
California Poverty Project: The CPI, in collaboration with the Public Policy Institute of California, issues the California Poverty Measure (CPM) annually. There are plans afoot to make it an even more powerful policy instrument.
Ending Poverty in California: Is it possible to substantially reduce poverty in California by relying entirely on evidence-based programs? It indeed is.
The National Poverty Study: The country’s one-size-fits-all poverty policy ignores the seemingly profound differences between suburban poverty, immigrant poverty, reservation poverty, rural white poverty, deindustrializing poverty, and the many other ways in which massive deprivation plays out in the U.S. The National Poverty Study, which will be the country’s first qualitative census of poverty, takes on the problem.
Income supports and deep poverty: The U.S. does not rely heavily on unconditional cash transfers in its poverty programming. Is this a mistake? The CPI is assisting Y Combinator in providing the first U.S. evidence on unconditional income support since the negative income tax experiments of the 1970s.
Disability and deep poverty: The country’s disability programs are an important anti-poverty weapon. In evaluating their effectiveness, it is important to determine whether the low employment rates among program recipients reflects an underlying (low) capacity for employment, as opposed to the labor-supply effects of the programs themselves. Although it’s long been difficult to assess such labor-supply effects, now there’s a way forward.
Evictions and deep and extreme poverty: Are evictions an important cause of deep and extreme poverty? This line of research examines the extent to which deep and extreme poverty can be reduced with a “housing first” policy that ramps up federal housing programs.
Deep poverty and TANF add-ons: The country is implicitly running hundreds of experiments on how best to structure TANF programs, but it hasn’t had the capacity to evaluate them. Are administrative data the answer?
Featured Examples
Poverty - CPI Research
Title | Author | Media | |
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Coming of Age in the Other America | Stefanie DeLuca, Susan Clampet-Lundquist, Kathryn Edin |
Coming of Age in the Other AmericaAuthor: Stefanie DeLuca, Susan Clampet-Lundquist, Kathryn EdinPublisher: Russell Sage Foundation Date: 04/2016 Recent research on inequality and poverty has shown that those born into low-income families, especially African Americans, still have difficulty entering the middle class, in part because of the disadvantages they experience living in more dangerous neighborhoods, going to inferior public schools, and persistent racial inequality. Coming of Age in the Other America shows that despite overwhelming odds, some disadvantaged urban youth do achieve upward mobility. Drawing from ten years of fieldwork with parents and children who resided in Baltimore public housing, sociologists Stefanie DeLuca, Susan Clampet-Lundquist, and Kathryn Edin highlight the remarkable resiliency of some of the youth who hailed from the nation’s poorest neighborhoods and show how the right public policies might help break the cycle of disadvantage. |
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Poverty and Child Development: A Longitudinal Study of the Impact of the Earned Income Tax Credit | Rita Hamad, David H. Rehkopf |
Poverty and Child Development: A Longitudinal Study of the Impact of the Earned Income Tax CreditAuthor: Rita Hamad, David H. RehkopfPublisher: American Journal of Epidemiology Date: 04/2016 Although adverse socioeconomic conditions are correlated with worse child health and development, the effects of poverty-alleviation policies are less understood. We examined the associations of the Earned Income Tax Credit (EITC) on child development and used an instrumental variable approach to estimate the potential impacts of income. We used data from the US National Longitudinal Survey of Youth (n = 8,186) during 1986–2000 to examine effects on the Behavioral Problems Index (BPI) and Home Observation Measurement of the Environment inventory (HOME) scores. We conducted 2 analyses. In the first, we used multivariate linear regressions with child-level fixed effects to examine the association of EITC payment size with BPI and HOME scores; in the second, we used EITC payment size as an instrument to estimate the associations of income with BPI and HOME scores. In linear regression models, higher EITC payments were associated with improved short-term BPI scores (per $1,000, β = −0.57; P = 0.04). In instrumental variable analyses, higher income was associated with improved short-term BPI scores (per $1,000, β = −0.47; P = 0.01) and medium-term HOME scores (per $1,000, β = 0.64; P = 0.02). Our results suggest that both EITC benefits and higher income are associated with modest but meaningful improvements in child development. These findings provide valuable information for health researchers and policymakers for improving child health and development. |
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Childhood Environment and Gender Gaps in Adulthood | Raj Chetty, Nathaniel Hendren, Frina Lin, Jeremy Majerovitz, Benjamin Scuderi |
Childhood Environment and Gender Gaps in AdulthoodAuthor: Raj Chetty, Nathaniel Hendren, Frina Lin, Jeremy Majerovitz, Benjamin ScuderiPublisher: NBER Date: 02/2016 We show that differences in childhood environments play an important role in shaping gender gaps in adulthood by documenting three facts using population tax records for children born in the 1980s. First, gender gaps in employment rates, earnings, and college attendance vary substantially across the parental income distribution. Notably, the traditional gender gap in employment rates is reversed for children growing up in poor families: boys in families in the bottom quintile of the income distributionare less likely to work than girls. Second, these gender gaps vary substantially across counties and commuting zones in which children grow up. The degree of variation in outcomes across places is largest for boys growing up in poor, single-parent families. Third, the spatial variation in gender gaps is highly correlated with proxies for neighborhood disadvantage. Low-income boys who grow up in high-poverty, high-minority areas work significantly less than girls. These areas also have higher rates of crime, suggesting that boys growing up in concentrated poverty substitute from formal employment to crime. Together, these findings demonstrate that gender gaps in adulthood have roots in childhood, perhaps because childhood disadvantage is especially harmful for boys. |
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State of the Union 2016: Poverty | Janet C. Gornick, Markus Jäntti |
State of the Union 2016: PovertyAuthor: Janet C. Gornick, Markus JänttiPublisher: Date: 02/2016 The well-known exceptionalism of American relative poverty extends only to rich countries, not to middle-income countries. Using a relative poverty standard for disposable household income, the U.S. poverty rate exceeds that reported in all of the other high-income countries in this study, with the sole exception of Israel. |
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State of the Union 2016: Health | Jason Beckfield, Katherine Morris |
State of the Union 2016: HealthAuthor: Jason Beckfield, Katherine MorrisPublisher: Date: 02/2016 The U.S. population is not just sicker, on average, than the European population, but also has a higher level of health inequality than the European population. The U.S. states that combine low self-rated health with high health inequality look strikingly similar—in terms of their health profiles—to Central and Eastern European countries. |
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poverty - CPI Affiliates
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David Neumark |
Founding Director, Economic Self-Sufficiency Policy Research Institute (ESSPRI); Chancellor’s Professor of Economics; Research Associate, NBER; Research Fellow, IZA; Director, Center for Economics & Public Policy |
University of California, Irvine |
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Steven N. Durlauf |
Steans Professor of Educational Policy |
University of Chicago |
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Edmund S. Phelps |
McVickar Professor of Political Economy; Director of the Center on Capitalism and Society |
Columbia University |
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Sudhir A. Venkatesh |
UX Researcher on Protect and Care |
Facebook Research |
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Emily Hannum |
Professor of Sociology and Education; Associate Director, Population Studies Center |
Univerisity of Pennsylvania |
Pages
Poverty - Other Research
Title | Author | Media | |
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Space and Unemployment: The Labor-Market Effects of Spatial Mismatch | Jan K. Brueckner , Yves Zenou |
Space and Unemployment: The Labor-Market Effects of Spatial MismatchAuthor: Jan K. Brueckner , Yves ZenouPublisher: Journal of Labor Economics Date: 01/2003 |
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From Mill Town to Board Room: The Rise of Women’s Paid Labor | Dora L. Costa |
From Mill Town to Board Room: The Rise of Women’s Paid LaborAuthor: Dora L. CostaPublisher: Journal of Economic Perspectives Date: 03/2000 |
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The Transition to Home Ownership and the Black-White Wealth Gap | Charles, Kerwin Kofi, Erik Hurst |
The Transition to Home Ownership and the Black-White Wealth GapAuthor: Charles, Kerwin Kofi, Erik HurstPublisher: Date: 03/2000 |
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Black-White Differences in Wealth and Asset Composition | Blau, Francine D., and John W. Graham |
Black-White Differences in Wealth and Asset CompositionAuthor: Blau, Francine D., and John W. GrahamPublisher: Quarterly Journal of Economics Date: 03/1989 |
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Job Loss at Mid-life: Managers and Executives Face the “New Risk Economy | Ruby Mendenhall, Ariel Kalil, Laurel J. Spindel,... |
Job Loss at Mid-life: Managers and Executives Face the “New Risk EconomyAuthor: Ruby Mendenhall, Ariel Kalil, Laurel J. Spindel,...Publisher: Social Forces Date: |
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