Do Minimum Wages Fight Poverty?

We present evidence on the effects of minimum wages on family incomes. The results indicate that minimum wages increase both the probability that poor families escape poverty and the probability that previously nonpoor families fall into poverty. The estimated increase in the flow into poverty is larger, although this difference is not statistically significant. We also find that minimum wages tend to boost the incomes of poor families that remain below the poverty line. On net, the various trade-offs created by minimum wage increases more closely resemble income redistribution among low-income families than income redistribution from high- to low-income families.     

Income inequality and income segregation

This article investigates how the growth in income inequality from 1970 to 2000 affected patterns of income segregation along three dimensions: the spatial segregation of poverty and affluence, race-specific patterns of income segregation, and the geographic scale of income segregation. The evidence reveals a robust relationship between income inequality and income segregation, an effect that is larger for black families than for white families. In addition, income inequality affects income segregation primarily through its effect on the large-scale spatial segregation of affluence rather than by affecting the spatial segregation of poverty or by altering small-scale patterns of income segregation.     

Increasing access to quality child care for children from low-income families: Families' experiences

Identifying effective strategies for increasing access to quality care for children from low-income families has important implications for society. This study examined the effectiveness of expanding child care assistance for low-income families (capping expenses at 10% of income and raising eligibility to 200% of the federal poverty line) to purchase quality care. Mixed methods documented families' experiences (N = 181) and capitalized on a natural experiment when families lost assistance. Results pointed to improved access to quality care for children from low-income families by: 1) helping low-income families continue utilizing quality providers when incomes dropped, and 2) enabling others to begin utilizing quality providers. Perceived impacts were greatest for families with higher incomes (within the eligibility range), and for those with children ages five and younger. Additionally, parents were able to pay providers the full rate that they charge for care, which may help quality providers continue serving low-income families.     

Welfare reforms in Canada

This study examines the development of impoverished pre-school children before and after the implementation of mandatory welfare-to-work initiatives in Canada. Using data from the 1994/95 and 1998/99 cycles of the National Longitudinal Survey of Children and Youth, we explore the relationships that impoverished families’ income source and family income status have with pre-school children's school readiness. Findings indicate that both before and after the implementation of mandatory welfare-to-work initiatives, children in working poor families had higher school readiness scores than their peers whose families receive social assisntance, independent of family environment characteristics that differentiated working poor and social assistance poor families. In addition, both before and after the implementation of mandatory welfare-to-work initiatives, school readiness scores of poor children were lower than scores for non-poor children, with children living in families that had incomes at least 200 percent of the low-income cut-offs being the only group with scores above the expected standard of 100. In sum, our study fails to provide evidence that by the end of the 1990s welfare reforms supported the concurrent policy goal of improving the well-being of Canadian children in poverty.     

Immigrant groups’ income inequality within and across Italian regions

The relationship between Italian regional income inequality and the phenomenon of migration is still under current debate. Policymakers and researchers worry about the process of assimilation of the new entrants, in a country where regional disparities are strong. We provide evidence that regional income disparities apply to groups of immigrants as well as of nationals, but the most important source of inequality rests on within-immigrant group/within-region, especially for those households with the presence of women and very young children. However, if bottom incomes were to grow, inequality would not diminish, with the exception of married individuals living in the North, for no other characteristic is correlated to inequality according to the Atkinson bottom sensitive index. We show that the uneven economic development across regions then influences the distribution of immigration both in sociodemographic and economic terms.     

Comparing Child Poverty Risk by Family Structure During the 2008 Recession

Children in nonmarried families are at greater risk for poverty and especially so during a time of macroeconomic recession. Using carefully harmonized data, the authors analyze child poverty among nonmarried families before and during the 2008 recession in five liberal welfare states: Australia, Canada, Ireland, the United Kingdom, and the United States. Although having similar demographic compositions, the authors document wide cross‐national variation in poverty risk based on marital status and gender of the household head. Through the recession, child poverty in Canada and the United Kingdom declined while it increased in Australia and Ireland and was largely unchanged in the United States. Decomposing changes within countries over time, family benefits in the form of income transfers play a major role in reducing poverty for nonmarried families. In all countries, children in cohabitating families were less protected from market instability.     

The effect on inequality of changing one or two incomes

We examine the effect on inequality of increasing one income, and show that for two wide classes of indices a benchmark income level or position exists, dividing upper from lower incomes, such that if a lower income is raised, inequality falls, and if an upper income is raised, inequality rises. We provide a condition on the inequality orderings implicit in two inequality indices under which the one has a lower benchmark than the other for all unequal income distributions. We go on to examine the effect on the same indices of simultaneously increasing one income and decreasing another higher up the distribution, deriving results which quantify the extent of the ‘bucket leak’ which can be tolerated without negating the beneficial inequality effect of the transfer. Our results have implications for the inequality and poverty impacts of different income growth patterns, and of redistributive programmes, leaky or not, which are briefly discussed.     

Survey nonresponse and the distribution of income

The paper examines the distributional implications of selective compliance in sample surveys, whereby households with different incomes are not equally likely to participate. Poverty and inequality measurement implications are discussed for monotonically decreasing and inverted-U compliance-income relationships. We demonstrate that the latent income effect on the probability of compliance can be estimated from information on response rates across geographic areas. On implementing the method on the Current Population Survey for the U.S. we find that the compliance probability falls monotonically as income rises. Correcting for nonresponse appreciably increases mean income and inequality, but has only a small impact on poverty incidence up to poverty lines common in the U.S. Martin Ravallion: Corresponding author.     

Private Financial Transfers,Family Income,and the Great Recession

Using longitudinal data from the Fragile Families and Child Wellbeing Study (N = 4,701; 1998–2010), the authors studied whether the unemployment rate was associated with private financial transfers (PFTs) among urban families with young children and whether family income moderated these associations. They found that an increase in the unemployment rate was associated with greater PFT receipt and that family income moderated the association. Poor and near‐poor mothers experienced increases in PFT receipt when unemployment rates were high, whereas mothers with incomes between 2 and 3 times the poverty threshold experienced decreases. Simulations estimating the impact of the Great Recession suggest that moving from 5% to 10% unemployment is associated with a 9‐percentage‐point increase in the predicted probability of receiving a PFT for the sample as a whole, with greater increases in predicted probabilities among poor and near‐poor mothers.     

“Beating the Odds” Versus “Changing the Odds”: Poverty,Resilience, and Family Policy

Mixed in with national data on declining poverty rates are other signs that poverty, economic hardship, and inequality continue unabated. This essay examines: (a) the scope of poverty and the growing disparity in income and wealth; (b) the consequences of poverty of adults and children; and (c) strategies for improving their resilience. It is suggested that resiliency will be enhanced more by keen attention to national economic policies than by focusing upon individual personality characteristics, family attributes, or even unique community features. Drawing on a public health analogy, a focus on prevention (through sound economic redistribution policies) could significantly strengthen families and improve their well‐being.     

Effects of federal programs on children: Absolute poverty, relative poverty, and income inequality

Since the 1996 welfare reform, federal spending on means-tested programs targeting the poorest children has decreased, while programs that benefit children in low-income working families have been expanded substantially. With this background, this study examined changes in the antipoverty and anti-inequality effects of children's programs between 1995 and 2007 using data from the Annual Social and Economic (ASEC) Supplements to the Current Population Survey (CPS). The findings suggest that although the poverty-reduction effects of the federal child programs increased between 1995 and 2007, the programs' effects on the reductions of children's absolute poverty gaps, relative poverty rates, relative poverty gaps, and income inequality all decreased. More importantly, the antipoverty effects of the federal child programs were most weakened for the poorest children (i.e., those in female-headed, immigrant, and nonworking families) between 1995 and 2007.     

Uneven Development and Local Inequality in the U.S. South: The Role of Outside Investment,Landed Elites,and Racial Dynamics

This paper develops a historically contingent understanding of patterns of uneven economic development in the U.S. South. We conceptualize spatial variation in economic development and its consequences for inequality to be embedded in both local and international dynamics. The character of local economic development, it is argued, reflects the organizational base and heterogeneity of local elites, the divisions and relative power of nonelites, and the embeddedness of the local political economy in national and world systems of politics and production. These ideas are developed and made historically and spatially specific through an analysis of uneven development in one Southern state, North Carolina. Our findings suggest that contemporary patterns of uneven development and the resulting income deprivations and inequality reflect conditional interactions between elite economic projects and racial divisions within the working class. We find that outside investment seems to reproduce rather than disrupt local patterns of inequality and poverty.     

Social welfare,inequality, and poverty when needs differ

The paper examines income distributions of a finite population consisting of households which may differ with respect to needs. Since observed incomes are not directly comparable, income distributions have to be adjusted. Incomes are transformed to equivalent incomes interpreted as living standards and measured for a reference type, and the latter are supplemented by weights depending on needs. A general class of social welfare orderings (being based on adjusted rank-ordered income distributions) is characterized by a set of properties. Severe limitations for the form of the adjustment process are implied. The consequences for the measurement of inequality and poverty are demonstrated, and corresponding orderings are derived.     

An Ex-Post View of Inequality of Opportunity in France and its Regions

This paper proposes an ex-post measure of inequality of opportunity in France and its regions by assessing the inequality between individuals exerting the same effort. To this end, we define a fair income that fulfils ex-post equality of opportunity requirements. Unfairness is measured by an unfair Gini based on the distance between the actual income and the fair income. Our findings reveal that the measures of ex-post inequality of opportunity largely vary across regions, and that this is due to differences in reward schemes and in the impact of the non responsibility factors of income. We find that most regions have actual incomes closer to fair incomes than to average income, excepted Ile de France where the actual income looks poorly related to effort variables. Finally, we find that income inequality and inequality of opportunity are positively correlated among regions.     

Income inequality,poverty and crime across nations

We examine the relationship between income inequality, poverty, and different types of crime. Our results are consistent with recent research in showing that inequality is unrelated to homicide rates when poverty is controlled. In our multi‐level analyses of the International Crime Victimization Survey we find that inequality is unrelated to assault, robbery, burglary, and theft when poverty is controlled. We argue that there are also theoretical reasons to doubt that the level of income inequality of a country affects the likelihood of criminal behaviour.     

A comparative study of immigrant and non-immigrant families in Canada with special reference to income, 1986

A comparison of immigrant and non-immigrant families in Canada based on unpublished data from the 1986 Consensus of Canada indicates that immigrant families have stronger family ties and higher income than their non-immigrant counterparts. This could be partly because immigrant families contain higher proportions of their members at prime working ages, higher proportions with three or more employment income recipients and higher proportions working full year full time. As the period of residence in Canada of immigrants increases, the difference in income between immigrant and non-immigrant families increases. However, the income difference is smaller for husband-wife and male lone-parent families than for female lone-parent families. The multivariate analysis of family income indicates that age and family type have overwhelming effects and that place of birth is third in importance. Immigrant families from the US, UK, Europe (excluding Southern Europe) and Africa have higher incomes than families from other places of birth.
Both non-immigrant and immigrant husband-wife and male lone-parent families derive about 75 per cent of their total income from wages and salaries, whereas non-immigrant and immigrant female lone-parent families derive about 62 and 68 per cent respectively. Non-immigrant female lone-parent families derive about 24 per cent of their income from government transfers, whereas immigrant female lone-parent families derive about 16 per cent. With the exception of Old Age Security payments and Guaranteed Income Supplement, government transfers such as Canada and Quebec Pension Plan payments, unemployment insurance benefits, family allowances, worker's compensation, provincial income supplements and tax credits are smaller for immigrant families both in dollar amounts and as proportions of their total income for the non-immigrant families.     

A living wage for former welfare recipients entering employment: The case of Butler County,Ohio

Since the late 1970s, changes in family income in the United States have varied by income category. While the average income of families with children in the top 20% of the income distribution has grown, the average income of families with children in the bottom 20% has declined. Factors contributing to the growing income gap include disparities in wages paid to low-income workers relative to high-income workers, an increase in female-headed single parent families, and a decrease in the value of the minimum wage. Welfare reform will likely only exacerbate this situation. This study synthesizes existing research as well as data from an Ohio county to demonstrate that the minimum wage incomes available to poor families are not sufficient for even basic necessities. In order for former AFDC recipients to become economically independent, government policies must be enacted to increase wages and/or provide income assistance for poor families.     

Making Child Care "Affordable" in the United States

Two alternative federally financed plans are presented as modelsfor a program which would make child care of acceptable quality"affordable" for millions of American families. Taking a cuefrom currently operating state programs, care is defined as"affordable" if it costs parents no more than 30 percent ofthe amount by which their income exceeds the poverty line. Thefirst plan would cost the government $25 billion per year andwould concentrate help on families with incomes up to twicethe poverty line. The second would cost $39 billion per year,would provide higher quality care, and would allow all UnitedStates families to have access to care that was "affordable"by our definition. Costs of these magnitudes preclude financingof any significant part by employers or philanthropies. Whilesome government savings might result from the beneficial effectsof these programs, the main rationale for them rests, not onthe calculation that they will save the government money (althoughthey might), but on the fact that they will prevent considerablemisery to children and their families. Making quality childcare affordable to all families would result in safer, moreeducational, and more enjoyable care for children, and wouldgive a financial boost to families pitifully short of resourcesin a non-stigmatizing way. It would reduce child poverty andreduce enrollment in welfare-type programs. It would also giveparents a chance to particiopate in the world of work and toachieve the gains in resources and status that such a participationwould alllow.     

Distributive effects of benefits and taxes

In light of the growing federal deficit, pressure is mounting to cut federal spending. If the budget for social security programs is cut, who will suffer? This article presents the results of a study that investigated the degree to which taxes and public income transfers change the level of income, the degree of inequality in income distribution, and the poverty rates of various demographic groups. Major findings are that public income transfers are more powerful than taxes in equalizing the income distribution and that poverty reduction through non-means-tested transfer programs is more effective among elderly people, white people, and people in married-couple families, whereas poverty reduction through means-tested transfer programs is more effective among nonelderly people, black people, and people in female-headed families. Implications for social work practice are discussed.