Poverty Catchments: Migration,Residential Mobility,and Population Turnover in Impoverished Rural Illinois Communities

Abstract Research has thoroughly documented how out‐migration of the educated and skilled from rural areas leaves behind a poorer population and creates pockets of rural poverty. Recently, studies have recognized that the poor are also geographically mobile and that poverty migration patterns can reinforce rural poverty concentrations. In this process, certain impoverished rural communities in economically depressed regions receive a disproportionate share of poverty migrants, concentrating poverty in certain locations. This paper examines the conditions and processes through which poor rural communities become likely destinations for a highly mobile segment of the rural poor and near‐poor. Utilizing case studies of depressed rural Illinois communities, it investigates how the interplay of community factors and the behavior of migrants transforms rural communities from residentially stable to highly mobile, impoverished places.     

Three perspectives on the mismatch between measures of material poverty

The two most prominent measures of material poverty within contemporary European poverty analysis are low income and material deprivation. However, it is by now well‐known that these measures identify substantially different people as being poor. In this research note, I seek to demonstrate that there are at least three ways to understand the mismatch between low income and material deprivation, relating to three different forms of identification: identifying poor households, identifying groups at risk of poverty and identifying trends in material poverty over time. Drawing on data from the British Household Panel Survey, I show that while low income and material deprivation identify very different households as being poor, and display distinct trends over time, in many cases they identify the same groups at being at risk of material poverty.     

The social consequences of unemployment in hungary—a household perspective

In this article the following hypotheses are tested using the Hungarian Household Panel Survey and the SOCO data: (a) Poverty is more likely to be felt by ‘unemployed’ households (i.e. households in which one or more members are unemployed) than by ‘non‐unemployment’ households (i.e. households in which none of the members are unemployed); and (b) A household is more likely to be poor if the head of the household becomes unemployed rather than if the spouse or one of the elder children do. The analysis shows that unemployment is closely related to all aspects of poverty (e.g. income, expenditure, and subjective‐poverty), but this association is especially strong in the case of income. It also demonstrates that poverty is more likely when the head of the household, rather than any other member of the household, becomes unemployed. After controlling for all variables we see that when the head of the household becomes unemployed the probability of being poor increases only with regard to income‐ and subjective‐poverty. Wealth‐ and housing‐poverty are not influenced by unemployment in the household. By comparison, in the other Central European countries, when the head of the household becomes unemployed, the probability of being poor increases in all aspects of poverty. This finding suggests that unemployment in Hungary seems to be less devastating than in other post‐socialist countries.     

Can Trade Help Poor People? The Role of Trade,Trade Policy and Market Access in Tanzania

Many development economists prescribe trade as a poverty‐reducing formula. But how is this elixir supposed to work? This article contributes to the lively debate on this topic with household evidence from Tanzania — a poor country even within sub‐Saharan Africa, the poorest region. About 81% of the poor work in agriculture, which accounts for 88% of the export bundle. The article describes existing poverty and then evaluates the poverty‐reduction potential of trade, trade policy and market access. The article extends the analysis by simulating tariff changes and four switching scenarios that swap some poor households into trade‐related sectors, such as cash cropping or tourism, to project national poverty reductions of up to 5.6% and household income increases of up to 21.5%.     

Questioning the Pro‐Poor Agenda: Examining the Links between Social Protection and Poverty

This article investigates an empirical puzzle. Taking the case of Botswana, how is it that poverty is so high, when the country largely conforms to pro‐poor growth strategies? This article suggests that the minimal role of social‐security policies partly explains the relatively high poverty levels. This hypothesis is tested in a large‐N study of developing countries which shows that broad‐based and generous, rather than pro‐poor, social‐security policies impact strongly on poverty levels. The analysis further alludes to other obstacles to poverty reduction, such as economic transformation, which may be combined with a pro‐active social‐policy agenda. Thus, poverty‐alleviating strategies should be refocused to allow for a wider and more coherent role for social‐security policies.     

Poverty,Place, and Coal Employment across Appalachia and the United States in a New Economic Era

The impacts of employment in the coal industry remain controversial. Few studies have investigated these impacts over the decade of the great recession and in light of the nation's changing energy economy. We bring together two long‐standing rural sociological traditions to address debates framed at the national level and for Appalachian communities facing the throes of transition from the coal industry. Building from rural sociology's “poverty and place” tradition and from natural resources sociology, we examine the relationship between coal employment and communities’ economic well‐being as indicated by poverty, household income, and unemployment. The study spans U.S. and Appalachian counties from 1990 to 2010. U.S. counties with greater coal employment in 1990 had lower income and higher poverty in 2000. Overall, however, coal employment's effect is mixed in the 1990–2000 decade. By contrast, for the recent 2000–2010 decade, coal employment is positively associated with indicators of well‐being. In Appalachia, fewer employment alternatives outside mining are related to higher well‐being. Our findings extend the poverty and place literature and the natural resources literature and underscore why a just transition away from coal should focus on moving communities toward sectors offering better future livelihoods.     

Civic life in Gray Mountain: sizing up the legacy of New England’s blue-collar middle class

When President Clinton took Congressional and business leaders on a tour early this summer to places where chronic poverty has persisted despite the nation’s booming economy, they visited Appalachia’s coalfields, the Mississippi Delta, the Pine Ridge Indian reservation and inner-city neighborhoods in East St. Louis and Los Angeles. They did not visit New England. Not that New England’s inner cities aren’t plagued with poverty and social problems; they are. And many poor families are struggling to get by in rural Maine, New Hampshire, and Vermont. Yet the notoriously bad conditions that took the president to the nation’s “poverty pockets” are exceedingly rare in the six-state region. Why? Why have poverty rates stayed so high in the South compared with New England? And what can the region expect in the future?The answers lie in the kind of civic culture generated by each community’s economy and social structure. Chronically poor places are divided by race and class and saddled with corrupt politics, ineffective schools, and self-interested elites. Distrustful of one another, people in these places look out only for their own families. Escaping poverty is possible only for the lucky few who have a kind relative, caring teacher, or coach who pushes and inspires them to finish school and aim high. But most stay trapped in the same poor conditions their parents and perhaps grandparents knew.In contrast, when communities have a large middle class, the poor are less likely to be cut off from the mainstream. And they are more likely to have the set of contacts, habits and skills—the cultural tool kit—they need to leave poverty behind. More importantly, the community institutions that poor families rely upon are more likely to be effective because the middle class is committed to them. The poor can get ahead without relying solely on personal intervention from a mentor or other benefactor.During the 1990s, I studied poverty and community change in three remote, rural communities: a poor Appalachian coal county I call “Blackwell,” a poor Mississippi Delta plantation community I call “Dahlia” and a more stable and economically diverse northern New England mill community, “Gray Mountain.” The idea was to learn why poverty persisted generation after generation in Appalachia and the Delta, what made the difference when people did achieve upward mobility, and why it was so hard to bring about change. I examined 100 years of Census data detailing changes in population, patterns of work, income distribution and education. I read histories of each region, as well as the local weekly newspapers. But the heart of the study is the 350 in-depth interviews colleagues and I conducted with people living in these communities—not only the poor, but also the rich and those in between. These open-ended conversations revealed how each community’s civic culture—its level of trust, participation and investment—shapes opportunities for both individual mobility and social change.     

The concept and measurement of asset poverty: Levels, trends and composition for the U.S., 1983–2001

American prosperity in the second half of the 1980s together with the booming economy of the 1990s created the impression that American households have done well, particularly in terms of wealth acquisition. In this paper, we develop the concept of “asset poverty” as a measure of economic hardship, distinct from and complementary to the more commonly used concept of “income poverty.” We define a household with insufficient assets to enable it to meet basic needs (as measured by the income poverty line) for a period of three months to be asset poor. The results reveal that in the face of the large growth in overall assets in the U.S. and a fall in standard income poverty over the period from 1983 to 2001, the level of asset poverty increased from 22.4 to 24.5 percent. We also find that asset poverty rates for blacks and Hispanics are over twice those for whites; that asset poverty rates fall monotonically with both age and education; that they are much higher for renters than homeowners; and that by family type they range from a low of 5 percent for elderly couples to 71 percent for female single parents.     

Income Diversity,Technology Choice and Agricultural Research Policy in Sub‐Saharan Africa

This article makes an initial analysis of the implications of income diversification for technical change and agricultural research policy in Africa, leading to two insights. First, that the dilution effect of income diversification means that, as the proportion of non‐farm income increases, so must the expected gains from adopting a new agricultural technology. Second, that diversified producers will face disproportionately large transactions costs associated with information acquisition to inform technology choice decisions. Two hypotheses about how diversified producers are likely to react are then explored. Both point to the conclusion that income diversification among the poor is likely to constrain significantly the direct poverty impacts of agricultural research. The policy implications of these findings are then considered.     

Impact of Rising World Rice Prices on Poverty and Inequality in Burkina Faso

Between January 2006 and April 2008, the prices of most agricultural products rose considerably in international markets. Empirical studies show that this spike in world food prices increased the number of poor households in developing countries, but the extent was not the same in all countries. This article assesses the impact of rising rice prices on poverty and income inequality in Burkina Faso, using a methodology based on the concept of compensating variation combined with the net benefit ratio (NBR) developed by Deaton (1989) and a living standard survey (QUIBB, 2003). The results show that higher prices have a negative impact on income and poverty in the regions with a large proportion of households that are net buyers of rice. The poverty rate increases by 2.2 to 2.9 percentage points depending on the assumptions, the increase being higher in urban areas than in rural areas. Rising rice prices also increase income inequality, which increases particularly in urban areas and in relatively rich regions, but decreases in poor regions with a large proportion of rice producers.     

Mass Poverty,Slow Economic Growth and Redistribution

Abstract

Policy-makers in South Africa prefer to tackle poverty indirectly through promoting growth, and allowing benefits to trickle down to the poor, rather than reducing poverty directly through redistributing income. In the long run, economic growth is the only way to reduce poverty. But the benefits of growth take a long time to mitigate poverty, especially in conditions of high inequality or high unemployment – both of which characterise South Africa. The poor benefit more through a more directly redistributive strategy even if overall growth is lower than it would otherwise be. Modelling the effects of different rates of growth, public works programmes and different redistributive strategies (including a basic income grant and expanded child support grants) shows that the poor benefit most from a directly redistributive basic income grant.     

Marriage Promotion Policy and Family Inequality

In 1996, Congress overhauled welfare policy to promote marriage and work as ways to lift American families out of poverty. Almost all of the funding for governmental marriage promotion has been devoted to relationship skills programs intended to help couples strengthen their relationships, encourage them to marry, and thereby prevent poverty. Marriage promotion policy has sparked intense debate, especially over the connection between marriage and family inequality. While advocates of the policy argue the government should promote marriage because it fosters social and economic well‐being, critics challenge the assumption that marriage itself causes these benefits or will help lift poor families out of poverty. Recent sociological research on why poor and low‐income couples marry less finds that they tend not to marry if they cannot meet a specific economic threshold. This suggests that rather than promoting the view that relationship skills en route to marriage can help prevent poverty, marriage promotion policy could likely better serve disadvantaged families by acknowledging and addressing the socioeconomic roots of family inequality.     

Impact of Public and Private Cash Transfers on Poverty and Inequality: Evidence from Vietnam

This article investigates the extent to which public and private transfers affected poverty and inequality in Vietnam in the mid‐2000s. It finds that the impact of public transfers on poverty was negligible, due to the low coverage of the poor and the relatively small amounts transferred. Moreover, the effect of the receipt of transfers on expenditures was small: recipients decreased the labour supply and only a limited amount of the extra income went to current consumption. Domestic private transfers were somewhat more successful in reducing poverty. With most public and private transfers going to non‐poor households, inequality was only marginally affected.     

Moving “Up and Out” Together: Exploring the Mother–Child Bond in Low‐Income,Single‐Mother‐Headed Families

Bearing children is often viewed as negatively impacting the social mobility of low‐income single mothers. This analysis draws on 66 in‐depth interviews with low‐income, single‐mother participants in an antipoverty program in Boston. The author argues that the mother–child relationship is at the center of efforts by these single mothers to move out of poverty. Interviewees repeatedly expressed the primacy of their children's needs being met in order for them to move forward. Mothers tried to include their children in efforts to move out of poverty, thus fulfilling the role of a “good mother” while exhibiting proper behavior for a poor person trying to achieve economic independence. The data here highlight the limitations of policy initiatives that fail to acknowledge the centrality of children's well‐being to the lives of single mothers and suggest that the mother–child bond may be an untapped resource for policies and programs serving this community.     

Measuring poverty without the Mortality Paradox

Under income-differentiated mortality, poverty measures reflect not only the “true” poverty, but, also, the interferences or noise caused by the survival process at work. Such interferences lead to the Mortality Paradox: the worse the survival conditions of the poor are, the lower the measured poverty is. We examine several solutions to avoid that paradox. We identify conditions under which the extension, by means of a fictitious income, of lifetime income profiles of the prematurely dead neutralizes the noise due to differential mortality. Then, to account not only for the “missing” poor, but, also, for the “hidden” poverty (premature death), we use, as a fictitious income, the welfare-neutral income, making indifferent between life continuation and death. The robustness of poverty measures to the extension technique is illustrated with regional Belgian data.     

That “Every Man for Himself” Thing: The Rationales of Individualism Among the Urban Poor

Individualism is a frequently referenced but seldom inspected topic within urban poverty literature. Residents of low‐income communities may internalize their social immobility by perceiving status to be determined by choices, behaviors, and psychological or moral shortcomings, but scholars generally depict such individualistic outlooks as only a byproduct of more predominant community dysfunctions. As a result, individualism—an ambiguous and confounding concept at all social strata—can assume an especially disapproving tenor when applied to the urban poor, often connoting qualities of defensiveness, ignorance, and quixotic hope. In this article, I draw from ethnographic fieldwork in Houston's Fifth Ward community to explore individualism's meanings and utility within a context of compromised prospects for positive self‐determination. I explain how defensiveness against vulnerability, violence, and volatile relationships is just one rationale for individualism that is exercised alongside other, still structurally framed rationales (i.e., expressive and meritocratic) on the viability of social mobility.     

Economic Growth and Poverty Reduction by Region: Chile 1990‐96

This article examines the evolution of poverty in Chile during 1990‐96, a period of rapid economic growth. It shows that Chile has embarked on a significant poverty‐reduction trajectory. The robustness of this result is examined by using nonparametric estimates of the income distribution and a stochastic dominance test. Growth is an important factor in explaining the poverty reduction that has occurred. Using the Datt‐Ravallion decomposition, it accounts for over 85% of poverty reduction at the national level. However, the pattern varies significantly across regions. Both growth, and its contribution to poverty reduction, vary significantly among regions. This seems to reflect the sectoral composition of growth across regions, with export‐oriented activities producing a larger poverty‐reduction impact.     

Trends in the Economic Status of the Aged and the Implications for State Policy

This paper examines recent trends in the economic status of the elderly. Particular attention is given to shifts in the income composition of older households and why these shifts have taken place. It is shown that most of these shifts are attributable, either directly or indirectly, to Social Security and private pension policies. The data also reveal that the income mix of poor older households differs greatly from that of more affluent older households. This has implications for the formulation of policies to improve the economic status of the elderly in poverty. Unfortunately, the current policy environment, characterized by large federal deficits, places severe constraints on developing federal programs to aid poor older persons. Thus, it is likely that state governments will need to take increasing responsibility for programs targeted to the aged poor. The paper concludes by considering the potential effectiveness of such programs.     

Uganda: No More Pro‐poor Growth?

This article explores changing growth regimes in Uganda, from pro‐poor growth in the 1990s to growth without poverty reduction, actually even with a slight increase in poverty, after 2000. Not surprisingly, it finds that good agricultural performance is the key determinant of direct pro‐poor growth in the 1990s, while lower agricultural growth is the root cause of the recent increase in poverty. At the same time, after 2000 low agricultural growth appears to have induced important employment shifts out of agriculture, which have dampened the increase in poverty. The article also assesses the indirect form of pro‐poor growth by analysing the incidence of public spending and the tax system, and finds that indirect pro‐poor growth has been achieved to only a limited extent.     

Plebiscites,Fiscal Policy and the Poor: Learning from US Experience with Direct Democracy

Many countries are contemplating direct political participation as a way of giving marginalised people more say in national fiscal policies. The United States is a natural laboratory for studying how large‐scale direct democracy actually works in this regard. Every state allows voters to decide certain ballot questions about how to raise and spend public revenue. The 100‐year record shows, however, that state‐wide plebiscites fail to produce uniformly equitable or financially sustainable government budgets, or to mobilise low‐income groups to defend their economic interests. When called upon to make decisions about state government spending, the electorate is apt to disregard any hardship for poor people. Traditional political parties and advocacy organisations are usually a more promising avenue for promoting anti‐poverty budgets.