Food insecurity and housing instability in vulnerable families

Reducing the prevalence of household food insecurity has been a long-standing objective of the federal government. Previous research has found many negative consequences of food insecurity for families and households but has not examined its relationship with housing instability. Using longitudinal data from the Fragile Families and Child Wellbeing Study, difference-in-difference models show that food insecurity is associated with housing instability. The association remains statistically significant after accounting for potential selection and unobserved heterogeneity using propensity score matching and excluding households that experienced prior housing instability from the sample. Examining potential mediating factors, I find that material hardship explains about half of this association. These findings suggest that maintaining a strong social safety net would reduce the risk that families experience material hardship and housing instability, which may also reduce the risk of homelessness.     

Emergency Saving and Household Hardship

Households with limited income and wealth often struggle to access the financial liquidity needed to address unexpected expenses or income drops. Emergency savings can act as form of insurance against such economic shocks and reduce the risk of hardships that influence family wellbeing. Prior research has established that threshold amounts of liquid assets can reduce the risk of economic hardship. This study used a measure of self-reported emergency saving behavior to examine whether households who reported saving for emergencies were less likely to experience subsequent economic hardships in a longitudinal sample of households in disadvantaged neighborhoods from the Annie E. Casey Foundation’s Making Connections project. Results across a range of regression models suggest that households who saved for emergencies experienced slightly less overall hardship and were less likely to report several specific hardships, such as food insecurity and having a phone disconnected, three years later. This study supports the idea that small, unrestricted savings may play a protective role for low-income households.     

Changes in durable stocks, portfolio allocation, and consumption expenditure in the aftermath of the Kobe earthquake

To understand the household recovery process from unexpected serious damage caused by a natural disaster, we analyze household data from the Kobe earthquake in 1995. We address three questions—how damaged stocks of durable wealth are reinvested, how an ex post portfolio of borrowing or dissaving is reallocated to diversify the asset shocks caused by the disaster, and how formal and informal consumption insurance mechanisms are effective for amending home damage—all of which have been largely unanswered. We obtain three findings. First, people respond to negative income changes and housing damage by reinvesting damaged wealth. Second, households borrow extensively to amend the large housing damage caused by the earthquake. However, they dissave only for minor household asset damage. Third, consumption smoothing is not achieved for nondurable goods that are significantly affected by negative income changes and household asset damage. These findings suggest that asset shocks caused by a large natural disaster are not sufficiently diversified for households, indicating a large gap in designing effective insurance mechanisms.     

Doubling Up or Moving Out? The Effect of International Labor Migration on Household Size

We use household panel data from Tajikistan to explore the change in living arrangements as a response to income shifts related to international labour migration. In addition, we analyse the interaction between the effect of idiosyncratic income increase resulting from a completed migration episode, and the effect of an aggregate shock – the global financial crisis – and show how different households adjust their household size during times of financial hardship. The empirical evidence indicates that while current migration is associated with an increase in household size, a completed migration episode two years before the interview was followed by family members moving out. At the same time, our empirical analysis demonstrates that migrant families doubled up in response to a financial crisis to the same extent as non-migrant families, which suggests that labour migration in Tajikistan does not insure against economic shocks in the long run.     

House Price Shocks and Individual Divorce Risk in the United States

Households in the United States hold a significant portion of their total wealth in owner-occupied housing. Thus, changes in housing prices may have an important impact on the marital surplus the household enjoys. What happens to marriages of homeowners when there is a shock to housing prices? This question was addressed using household data from the panel study of income dynamics (PSID) and a quarterly MSA level house price index from the Federal Housing Finance Agency, controlling for local labor market conditions. House price shocks were calculated as the cumulative sum of residuals of a second order autoregressive model from the previous four years. Results showed that positive house price shocks stabilized marriage for all couples. A one standard deviation increase in the house price shock decreased the risk of divorce in the following year by about 13–18%. The results were driven by the younger cohort of households in the PSID, those with lower educational attainment, and those with relatively low family income. The findings are discussed in the context of theories on changes in marital surplus, and changes in the transaction costs surrounding divorce.     

Material Hardship and Child Socioemotional Behaviors: Differences by Types of Hardship, Timing, and Duration

Child behavior problems are associated with long-term detrimental effects. A large body of literature looks at the association between income and child behavior but few studies examine this association with material hardship, an alternative economic indicator. We use data from the Fragile Families and Child Wellbeing Study to examine the following questions: (a) Is material hardship associated with child socioemotional behavior and are there differences by developmental timing, (b) Are particular hardships (bills, utilities, food, housing, medical) more strongly associated with child behavior, and (c) Are there differences in the association between short-term and long-term material hardship and child behavior? We find that children in households experiencing material hardship score significantly higher on externalizing and internalizing behaviors. Additionally, we find that a mother's inability to pay bills, experience of utility interruption, and housing instability are adversely related to child behavior. We also find that the association between material hardship and child behaviors is stronger at age 5 and that chronic aggregate hardship has a stronger association with child behavior.     

Transportation Hardship: Are You Better off with a Car?

Growing evidence demonstrates the importance of transportation in improving family economic well being. This article sheds light on the hardship that one important transportation asset, private vehicles, may exert on families. Data from the Iowa Transportation and Employment Survey provided a unique opportunity to understand how vehicle access enables households to meet their basic needs, but may exacerbate their problems through the creation of additional demands on resources. Approximately 26% of the sample reported having experienced transportation hardship. The strongest predictors of transportation hardship were the presence of children in the household, low income, driving less reliable vehicles, and the unavailability of transportation assistance from someone outside the household. How to help families meet their transportation needs in light of this evidence remains open to debate.     

The impacts of the food,fuel and financial crises on poor and vulnerable households in Nigeria: A retrospective approach to research inquiry

This article examines the impacts of the financial, food and fuel crises on poor and vulnerable households in two states of Nigeria: Lagos and Kano. It uses retrospective household‐level data to analyze the impacts of induced price variability on household welfare. The results indicate that aggregate shocks have significant adverse effects on household consumption, schooling and child labour decisions, with a degree of impact heterogeneity across regions and rural and urban areas of the country. We find that the coping strategies adopted by the poor to deal with the short‐term effects of the crises can lock households in a low‐income equilibrium or poverty trap. Provided that covariate shocks exacerbate these effects, they become central for policy design.     

Gambling Households in Canada

This paper examines the distribution of gambling dollars in Nova Scotia, Saskatchewan and Canada and studies the impact of this spending on households. We focus first on how gambling expenditures are related to the level and source of household income as well as to other demographic characteristics such as age, education, household composition, geographical area, and sources of income. Next we analyze how gambling expenditures are distributed among those households that gamble. We show how expenditure patterns differ in the intensity of gambling as measured by the proportion of household income or total amount of dollars spent on gambling. Then we study the affects that gambling has on spending on household necessities, changes in net worth, retirement savings and household debt. Finally we determine whether gambling expenditures act as a substitute or a complement to other recreational spending on entertainment products and services. Throughout the paper we offer a comparative analysis of provincial and national data.     

Age and the effect of economic hardship on depression

The amount of depression associated with economic hardship among adults may depend on age. This study tests alternative hypotheses about the interaction. The first asserts that the amount of depression associated with economic hardship decreases with older age because of maturity and experience. The second, the opposite, asserts that the amount increases with older age because of increasingly limited future opportunities for recovery. The study analyzes data from 2,592 households in the 1995 and 1998 telephone survey of Aging, Status, and the Sense of Control (ASOC). Regression analyses find that the amount of depression associated with economic hardship decreases with older age, both cross-sectionally and over time. No model shows an increase with age in the depression associated with economic hardship. However, regressions do show that not having household wage income or having a disabling or life threatening chronic disease increases the depression associated with economic hardship. Those interactions somewhat suppress the moderating effect of older age on the association between economic hardship and depression.     

Government Subsidies and Household Debt Burden After the Great Recession

During the recent Great Recession, US households, especially those with low incomes, faced severe financial distress. Households experiencing economic hardship may turn to receiving government assistance to alleviate the hardship or distress. Receiving government assistance may improve a household’s financial situation as it could be decreasing its reliance on debt or even improving a household’s ability to repay their current debt. We investigated how households’ financial debt obligations were affected by receiving government assistance, as has not been previously analyzed. Given the focus of this research, we included households under 185 % of poverty threshold released by the 2012 US Census Bureau. Results from the 2010 and 2013 Survey of Consumer Finances indicate that government assistance was positively related to the odds of meeting debt-to-income ratio guidelines, implying that government assistance plays an important role in financial security of low-income households. This study provides important insights for researchers and policymakers in the areas of poverty and household finance.     

Prevalence and economic well-being of families raising multiple children with disabilities

This study estimates the prevalence of households raising more than one child with disabilities, and examines these families' economic well-being. Using pooled data from the 2004 and 2008 Survey of Income and Program Participation we compare households with multiple children with disabilities (n = 932) to households with one disable child (n = 3457) and to households with at least one child but none with disabilities (n = 21,378) on measures of material hardship. Three percent of U.S. households with children had more than one disabled child. Compared to other households with children, those with multiple children with disabilities were significantly more likely to have income below the federal poverty level and to report material hardships. The number of children with disabilities is an important contextual variable for studying the economic circumstances under which, care is provided to children with disabilities. Its implications for practice and policy are discussed.     

Financial management in long-term low-income households: comparing perspectives of professionals and families in Portugal

Long-term low-income households face economic hardship, together with a lack of opportunities, which restrict their social participation. There is a widely held belief among professionals that these households poorly manage their finances. This exploratory study aims to gain a deeper understanding of these households' difficulties and strategies of family financial management in Portugal, taking into account the perspectives of both members of the households and professionals. Comparing viewpoints is relevant in order to identify how they might be informing interactions and interventions. A qualitative approach based on semi-structured interviews was used; the sample comprised 10 household members and 10 professionals. The main findings suggest that professionals believe these households demonstrate insufficient management strategies, while household members report struggling to manage insufficient resources. These distinctive views seem to facilitate interaction patterns characterized by mutual distrust, which should be taken into consideration when designing interventions, particularly concerning financial management.     

Married women's resource position and household food expenditures in Cebu,Philippines

This study analyzes how married women use their access to and control over economic resources to increase household spending on food. Using data from Cebu, Philippines, where child malnutrition is high, this study finds that the more income women earn and control, the more households spend on food. Women's control over their income is particularly important for increasing food expenditures in the poorest households. In richer households, women who earn little of their own income also use spouse income transfers to increase food expenditures. The findings from this study suggest that in a developing country setting, improving women's economic status so that they earn and control more household resources can increase household spending on goods that benefit children.     

Social capital and household income distributions in the United States: 1980, 1990

This paper asked if changes in social capital influence the level and disparity of household income in the United States. Social capital is defined in this paper as one's sympathy (antipathy) for others and one's idealized self. Changes in social capital are expected to produce the following economic consequences. First, increases in social capital are expected to alter the terms of trade and to increase the likelihood of trades between friends and family. Second, increases in social capital are expected to increase an economic agent's concerns for the external consequences of his or her choices, internalizing what otherwise would be considered externalities. Third, increases in social capital between firms are expected to increase the likelihood that they will act in their collective interest. Fourth, increases in social capital are expected to increase the opportunities for specialization and the likelihood of trade. Finally, increases in social capital are expected to raise the average level of income and reduce the disparity of income.This paper empirically tested the relationship between changes in social capital indicator variables and changes in the average and coefficient of variation (CVs) of household income. State CVs and averages of household income were calculated for all 50 states and for different races/ethnic groups using the U.S. Census data for 1980 and 1990. Social capital indicator variables selected to measure changes in social capital included measures of family integrity including the percentages of households headed by a single female with children; educational achievement variables including high school graduation rates; crime rate variables including litigation rates; and labor force participation rates. The social capital indicator variables appeared to be significantly correlated with each other. However, in 1980, the percentages of households headed by a single female with children was not significantly related to the birth rates of single teens. By 1990, however, a strong correlation was found between the percentages of households headed by a single female with children and the birth rate of single teens.Income inequality among U.S. households measured using CVs increased between 1980 and 1990 in all 50 states. The largest increase in CVs was among white households. The smallest increase in CVs was among Asian households. The states with the largest increase in the ratio of 1990 and 1980 CVs were Arizona, Wyoming, Maine, Vermont, and Texas. Half of the states reported decreases in real household income between 1980 and 1990. Those states with the largest percentage decrease in real income were Wyoming, Alaska, Montana, Louisiana, and West Virginia. The largest percentage increase in real income was reported by Connecticut, New Jersey, Rhode Island, and Massachusetts.State CVs and averages of household income were regressed on four factors or subsets of social capital indicator variables. The four factors used to predict CVs and averages of household income were generally statistically significant. The findings of this report support the conclusion that changes in social capital have a significant effect on the disparity and level of household income.     

The effect of income shocks on food insufficiency

In this paper we investigate the relationship between income shocks and food insufficiency for U.S. households. Using Survey of Income and Program Participation data on U.S. households, we test the importance of both stable and transitory income components in determining food insufficiency. In a logistic regression model, we find that both the level of income and negative income shocks affect the predicted probability of food insufficiency, while positive income shocks do not. Although we do not have a definitive measure of a household’s liquidity constraint status, our work suggests that negative shocks may matter more for households that face liquidity constraints. Understanding the role of income shocks in determining food insufficiency is especially important in light of recent policy changes. It is likely that welfare reform in the U.S. increased the volatility of income in the low-income population. Our findings here suggest that this increase in volatility may not be without consequence.     

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.     

Barriers to Economic Security: Disability,Employment, and Asset Disparities in Canada

Although ample research shows that people with disabilities face significant labor market barriers, questions remain about whether and how disadvantages in employment and earnings contribute to economic insecurity. We use 1999 to 2012 Canadian Survey of Financial Security data to study disparities in nonhousing assets, which include household savings, stocks, and pensions, across households with and without disabilities. We find that households where the respondent or their spouse reported a disability held 25 percent less in nonhousing assets after accounting for key employment, education, and demographic factors. Demonstrating the more complicated relationship between disability, employment, and assets, these direct effects were further strengthened by disability's indirect effects on assets through its relationship with employment income.     

Poverty and Material Hardship in Grandparent‐Headed Households

Using the 2001 Survey of Income and Program Participation, the current study examines poverty and material hardship among children living in 3‐generation (n = 486), skipped‐generation (n = 238), single‐parent (n = 2,076), and 2‐parent (n = 6,061) households. Multinomial and logistic regression models indicated that children living in grandparent‐headed households experience elevated risk of health insecurity (as measured by receipt of public insurance and uninsurance)—a disproportionate risk given rates of poverty within those households. Children living with single parents did not share this substantial risk. Risk of food and housing insecurity did not differ significantly from 2‐parent households once characteristics of the household and caregivers were taken into account.     

Household adversity and food security: The case of youth in public housing neighborhoods

This paper sets out to explore factors that may be associated with food hardship among young people who reside in public housing (N?=?124). The study is guided by Family Stress Theory and uses data from a cross-sectional study of African–American adolescents living in a public housing neighborhood located in West Baltimore. Results suggest that food security (defined as availability, accessibility, and adequacy) was negatively related to mother’s incarceration, large households, household experiencing material hardships, and interpersonal conflict as well as violence. It was also linked to community disorganization. Program and policy implications are suggested.