Poverty and Deep Poverty

  • Kathryn Edin
  • Linda Burton
  • David Grusky

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 StudyThe 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?

Poverty - CPI Research

Title Author Media
Living in a High Inequality Regime

Living in a High Inequality Regime

Author:
Publisher: Annals of the American Academy of Political and Social Science
Date: 01/2016

Income inequality in the United States is the highest it has been since the roaring 20s. The rich are getting richer. The middle class is descending from the middle. The poor are getting poorer. What accounts for the increase in wealth at the top? What dynamic forces have shaped this spectacular disparity? How are Americans adjusting to life in this brave new world? What effect does the social fallout of this inequality regime have on the fabric of American society?

The effects of rising inequality have proven difficult to tease out, but as the United States enters a moment in history in which key policy decisions about inequality, mobility, and poverty are being made, it is important for researchers to examine this trend to learn why there is so much inequality in the United States. In this volume of The ANNALS experts examine the “social fallout” from this income imbalance.  They shine a light on the winners and losers, focusing on occupational inequality, racial and gender inequality, as well as inequality in veteran groups. They explore accessibility and segregation to gauge how educational and crime/punishment trends are shaped by inequality. Finally, they examine how inequality impacts Americans’ views of themselves and others; the dynamics of class and culture; and the effects of socioeconomics on marriage, health, and death.

The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession Marianne Bitler, Hilary Hoynes

The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession

Author: Marianne Bitler, Hilary Hoynes
Publisher: Journal of Labor Economics
Date: 01/2016

Much attention has been given to the large increases in safety net spending during the Great Recession. We examine the relationship between poverty, the safety net, and business cycles historically and test whether there has been a significant change in this relationship. We find that post-welfare reform, Temporary Assistance for Needy Families did not respond during the Great Recession and extreme poverty is more cyclical than in prior recessions. Food Stamps and Unemployment Insurance are providing more protection--or no less protection--in the Great Recession, and there is some evidence of less cyclicality for 100% poverty.

Neighborhood Effect Heterogeneity by Family Income and Developmental Period Geoffrey T. Wodtke, Felix Elwert, David Harding

Neighborhood Effect Heterogeneity by Family Income and Developmental Period

Author: Geoffrey T. Wodtke, Felix Elwert, David Harding
Publisher: American Journal of Sociology
Date: 01/2016

Effects of disadvantaged neighborhoods on child educational outcomes likely depend on a family’s economic resources and the timing of neighborhood exposures during the course of child development. This study investigates how timing of exposure to disadvantaged neighborhoods during childhood versus adolescence affects high school graduation and whether these effects vary across families with different income levels. It follows 6,137 children in the PSID from childhood through adolescence and overcomes methodological problems associated with the joint endogeneity of neighborhood context and family income by adapting novel counterfactual methods—a structural nested mean model estimated via two-stage regression with residuals—for time-varying treatments and time-varying effect moderators. Results indicate that exposure to disadvantaged neighborhoods, particularly during adolescence, has a strong negative effect on high school graduation and that this negative effect is more severe for children from poor families.

Severe Deprivation in America: An Introduction Matthew Desmond

Severe Deprivation in America: An Introduction

Author: Matthew Desmond
Publisher: The Russell Sage Foundation Journal of the Social Sciences
Date: 11/2015

Poverty researchers from across the social sciences have the opportunity to reach collectively toward a new paradigm—not just a new way of thinking but a whole different approach to the study of vulnerability, violence, and marginality, one that carries methodological, policy-relevant, and normative implications. Most research is rooted in theories now a few decades old. These theories have stood the test of time because they are incisive, sweeping, and validated. But they also were developed before the United States began incarcerating more of its citizens than any other nation; before urban rents soared and poor families began dedicating the majority of their income to housing; before welfare reform caused caseloads to plummet; and before the crack epidemic tore apart poor minority communities. In recent years, the very nature of poverty in America has changed, especially at the very bottom. A new poverty agenda is needed for a world that is itself quite new.

$2.00 a Day: Living on Almost Nothing in America Kathryn Edin, Luke Shaefer

$2.00 a Day: Living on Almost Nothing in America

Author: Kathryn Edin, Luke Shaefer
Publisher: Boston MA: Houghton-Mifflin Harcourt
Date: 09/2015

Jessica Compton’s family of four would have no cash income unless she donated plasma twice a week at her local donation center in Tennessee. Modonna Harris and her teenage daughter Brianna in Chicago often have no food but spoiled milk on weekends. After two decades of brilliant research on American poverty, Kathryn Edin noticed something she hadn’t seen since the mid-1990s — households surviving on virtually no income. Edin teamed with Luke Shaefer, an expert on calculating incomes of the poor, to discover that the number of American families living on $2.00 per person, per day, has skyrocketed to 1.5 million American households, including about 3 million children. Where do these families live? How did they get so desperately poor? Edin has “turned sociology upside down” (Mother Jones) with her procurement of rich — and truthful — interviews. Through the book’s many compelling profiles, moving and startling answers emerge. The authors illuminate a troubling trend: a low-wage labor market that increasingly fails to deliver a living wage, and a growing but hidden landscape of survival strategies among America’s extreme poor. More than a powerful exposé, $2.00 a Day delivers new evidence and new ideas to our national debate on income inequality.

Jessica Compton’s family of four would have no cash income unless she donated plasma twice a week at her local donation center in Tennessee. Modonna Harris and her teenage daughter Brianna in Chicago often have no food but spoiled milk on weekends - See more at: http://www.hmhco.com/shop/books/200-a-Day/9780544303188#sthash.U75TC8CS.dpu

essica Compton’s family of four would have no cash income unless she donated plasma twice a week at her local donation center in Tennessee. Modonna Harris and her teenage daughter Brianna in Chicago often have no food but spoiled milk on weekends. 

 

After two decades of brilliant research on American poverty, Kathryn Edin noticed something she hadn’t seen since the mid-1990s — households surviving on virtually no income. Edin teamed with Luke Shaefer, an expert on calculating incomes of the poor, to discover that the number of American families living on $2.00 per person, per day, has skyrocketed to 1.5 million American households, including about 3 million children. 

 

Where do these families live? How did they get so desperately poor? Edin has “turned sociology upside down” (Mother Jones) with her procurement of rich — and truthful — interviews. Through the book’s many compelling profiles, moving and startling answers emerge. 

 

The authors illuminate a troubling trend: a low-wage labor market that increasingly fails to deliver a living wage, and a growing but hidden landscape of survival strategies among America’s extreme poor. More than a powerful exposé, $2.00 a Day delivers new evidence and new ideas to our national debate on income inequality. 

- See more at: http://www.hmhco.com/shop/books/200-a-Day/9780544303188#sthash.U75TC8CS....

About the Authors
Excerpts
Reviews
  • A revelatory account of poverty in America so deep that we, as a country, don’t think it exists 

    Jessica Compton’s family of four would have no cash income unless she donated plasma twice a week at her local donation center in Tennessee. Modonna Harris and her teenage daughter Brianna in Chicago often have no food but spoiled milk on weekends. 

     

    After two decades of brilliant research on American poverty, Kathryn Edin noticed something she hadn’t seen since the mid-1990s — households surviving on virtually no income. Edin teamed with Luke Shaefer, an expert on calculating incomes of the poor, to discover that the number of American families living on $2.00 per person, per day, has skyrocketed to 1.5 million American households, including about 3 million children. 

     

    Where do these families live? How did they get so desperately poor? Edin has “turned sociology upside down” (Mother Jones) with her procurement of rich — and truthful — interviews. Through the book’s many compelling profiles, moving and startling answers emerge. 

- See more at: http://www.hmhco.com/shop/books/200-a-Day/9780544303188#sthash.U75TC8CS....

About the Authors
Excerpts
Reviews
  • A revelatory account of poverty in America so deep that we, as a country, don’t think it exists 

    Jessica Compton’s family of four would have no cash income unless she donated plasma twice a week at her local donation center in Tennessee. Modonna Harris and her teenage daughter Brianna in Chicago often have no food but spoiled milk on weekends. 

     

    After two decades of brilliant research on American poverty, Kathryn Edin noticed something she hadn’t seen since the mid-1990s — households surviving on virtually no income. Edin teamed with Luke Shaefer, an expert on calculating incomes of the poor, to discover that the number of American families living on $2.00 per person, per day, has skyrocketed to 1.5 million American households, including about 3 million children. 

     

    Where do these families live? How did they get so desperately poor? Edin has “turned sociology upside down” (Mother Jones) with her procurement of rich — and truthful — interviews. Through the book’s many compelling profiles, moving and startling answers emerge. 

- See more at: http://www.hmhco.com/shop/books/200-a-Day/9780544303188#sthash.U75TC8CS....

poverty - CPI Affiliates

Harold R. Kerbo's picture Harold R. Kerbo Professor of Sociology
California Polytechnic State University
Chris Wimer Co-Director, Center on Poverty and Social Policy
Columbia University
Haya Stier's picture Haya Stier Professor of Sociology and of Labor Studies
Tel Aviv University
Francis A. Pearman Assistant Professor of Education
Stanford University
Herbert J. Gans's picture Herbert J. Gans R S Lynd Professor Emeritus and Special Lecturer
Columbia University

Pages

Poverty - Other Research

Title Author Media
The Impact of Early Experience on Childhood Brain Development: Nathan Fox Nathan Fox

The Impact of Early Experience on Childhood Brain Development: Nathan Fox

Author: Nathan Fox
Publisher:
Date: 04/2010

On April 13, 2010, the Center on Children and Families at Brookings and the Center for the Study of Poverty and Inequality at Stanford University sponsored an event that focused on the science of early brain development and the role that chronic stress early in life plays in the arrested development of children raised in risky situations. The policy implications of these and similar findings were discussed. This segment features Nathan A. Fox, Professor, University of Maryland, describing pioneering work that he and his colleagues carried out in Bucharest, Romania, looking at how institutionalization of children can profoundly harm children’s brain development.


The Invisible Safety Net: Protecting the Nation's Poor Children and Families Currie, Janet M.

The Invisible Safety Net: Protecting the Nation's Poor Children and Families

Author: Currie, Janet M.
Publisher: Princeton University Press
Date: 11/2008
The Economic Lives of the Poor Banerjee, Abhijit, Ester Duflo

The Economic Lives of the Poor

Author: Banerjee, Abhijit, Ester Duflo
Publisher: Journal of Economic Perspectives
Date: 10/2006
Poverty Traps Bowles, Samuel , Steven N. Durlauf, Karla Ruth Hoff

Poverty Traps

Author: Bowles, Samuel , Steven N. Durlauf, Karla Ruth Hoff
Publisher: Princeton University Press
Date: 03/2006
The Changing Face of Inequality in Home Mortgage Lending Williams, Richard, Reynold Nesiba, Eileen Diaz McConnell

The Changing Face of Inequality in Home Mortgage Lending

Author: Williams, Richard, Reynold Nesiba, Eileen Diaz McConnell
Publisher: Social Problems
Date: 01/2005