Housing hardship and energy insecurity among native-born and immigrant low-income families with children in the United States

The costs for rent and utilities account for the largest share of living expenses, yet these two critical dimensions of material hardship have seldom been examined concurrently in population-based studies. This paper employs multivariate statistical analysis using American Community Survey data to demonstrate the relative risk ratio of low-income renter-occupied households with children experiencing ‘rent burden', ‘energy insecurity', or a ‘double burden’ as opposed to no burden. Findings suggest that low-income households are more likely to experience these economic hardships in general but that specific groups are disproportionately burdened in different ways. For instance, whereas immigrants are more likely to experience rental burden, they are less likely to experience energy insecurity and are also spared from the double burden. In contrast, native-born African Americans are more likely than all other groups to experience the double burden. These results may be driven by the housing stock available to certain groups due to racial residential segregation, decisions regarding the quality of housing low-income householders are able to afford, as well as home-country values, such as modest living and energy conservation practices, among immigrant families. This paper also points to important policy gaps in safety net benefits related to housing and energy targeting low-income households.     

Determinants of housing quality: A comparison of white,African-American,and Hispanic single-parent women

This study examines housing quality among three groups of single-parent women: white, African-American, and Hispanic. Three indicators of housing quality—crowding, affordability, and satisfaction—are used to discover the extent to which these groups experience housing problems. This study also explores differences and similarities in the factors that precipitate problems in housing quality for these three groups of single parents. Findings suggest important differences and similarities in the nature of housing quality problems among white, African-American, and Hispanic single-parent women. The specified variables explained about 20% of the variance in crowding, housing affordability, and housing satisfaction. On measures of objective and subjective housing quality, white single mothers are better housed than their African-American or Hispanic counterparts. Hispanic single mothers have the largest housing cost burden and average more persons per household than the other groups. African-Americans are twice as likely as either group to live in low-quality housing and reported the lowest average satisfaction with their housing. Her research interests include housing and neighborhood assessment and women and public policy issues. She has recently published articles inUrban Affairs Quarterly andHousing and Society on housing and neighborhood assessment criteria among black urban households and the housing cost burden of various groups of female-headed households. She received her Ph.D. from Ohio State University. Her research interests include the housing adjustment behavior of women and public policy. She has recently completed her thesis on the role of noncustodial parents in determining the quality of life of their children. She is also the recipient of the Tessie Agan Award for research excellence from the American Association of Housing Educators for a paper titled “Unterstanding Constraints and Residential Satisfaction among Low-Income Single-Parent Families.”     

Does public housing reduce housing cost burden among low-income families with children?

ABSTRACT

About half of all renter households and over three-quarters of very low-income households in the United States experience a housing cost burden, with higher rates among families with children. Public housing may be an important tool for reducing families’ housing cost burdens. The current study uses nearly four decades of data from the Panel Study of Income Dynamics and its Assisted Housing Database to explore the relationship between public housing and housing cost burden among children in low-income families. Results from fixed effects models suggest that public housing is associated with a greatly reduced risk of experiencing housing cost burden when housing assistance receipt is measured a year before housing cost burden. These findings highlight the importance of public housing for reducing low-income families’ housing cost burdens.     

Housing tenure,structure, and crowding among Latino households

This article examines the effect of federal housing and public assistance programs on the housing quality of different Latino households. The research tests models of crowding and housing tenure and structure for Latino households. The data for this research are from the 1990 Latino National Political Survey-Panel Study of Income Dynamics (LNPS-PSID). Findings reveal that housing and public assistance programs do help alleviate crowding among the Latino population, but they do not help Latino households achieve ownership of a single-family home. All the demographic variables in the model contribute to the explanation of crowding, and a majority also significantly explain housing tenure and structure. Significant differences are found among Latino subgroups in the explanatory variables for crowding, tenure, and structure. She is also the director of the Center for the Study of Aging at Illinois State. Her research interests include housing of minority households and congregate housing for the elderly. She received her Ph.D. from Iowa State University. Her research interests include housing needs of Latino households, resource management of female-headed Puerto Rican households, fertility decisions of Puerto Rican women, and student labor force participation. She received her Ph.D. from the University of Illinois.     

The Burden of Medical Debt Faced by Households with Dependent Children in the United States: Implications for the Affordable Care Act of 2010

This paper examines the relationship between the number of dependent children and medical debt outcomes. Results show that the presence of dependent children in the household increased the probability of having any medical debt by 8 % for “high” financial burden households, 4 % for households at the 50th percentile of the income distribution and 3 % for privately insured households. The amount of medical debt by households at the 75th percentile of the income distribution was also increased. These findings show that the number of dependent children in the household was associated with medical debt for households in the middle of the income distribution. These results may be explained by the fact that those households at the lower tail of the income distribution are more likely to have public coverage, which tends to have lower cost sharing compared to those with private insurance.     

Rent Subsidies and the Elderly

This paper brings together the relatively meager and widely dispersed findings that apply to how the elderly would fair if a rent voucher program were to become the single government housing subsidy to households of low and moderate income. The paper begins by reviewing the findings that apply to the elderly from the recent Experimental Housing Allowance Program (EHAP), and then relates these EHAP fingings to findings on housing needs of various types of elderly such as low income elderly, racial minority elderly and elderly with functional impairments. In theory, the great benefit of the rent vouchers to the elderly is the unique freedom in housing choice and location inherent in the program. However, the EHAP findings suggest that the more unique one's housing needs the less likely one will successfully negotiate the voucher process. This process requires the voucher recipient to find program eligible (minimum standard) housing. The very poor elderly, those susceptible to minority discrimination in the private market, and those in need of barrier free, security protected and support serviced housing, will have the hardest time searching for and findings housing toward which they can apply a rent voucher. At best the housing voucher concept would make sense as one among several housing subsidy options open to elderly recipients. If it became the only option many of the poorest, most disenfranchised elderly would find themselves without a housing subsidy.     

INCOME INEQUALITY: THE IMPLICATIONS OF ECONOMIC STRUCTURE AND SOCIAL CONDITIONS

During the past few decades income inequality has been increasing in the United States and other developed nations, and is having major social consequences. In this study county-level data for the United States was analyzed to test the relative importance of three alternative approaches for explaining increased levels of inequality. These three approaches include economic structure, social conditions, and a model that maintains that both social conditions and inequality are a function of economic structure. The results revealed that social conditions were much more strongly related to inequality than economic structure and little support was found for the theoretical model. The two social conditions most strongly related to inequality included female employment and the percent of female-headed households. Counties with high levels of female employment tended to have low levels of inequality, while counties with high proportions of female-headed households tend to have high levels of inequality. The implications of these findings are discussed.     

Shelter Poverty and the Elderly

The conventional percent-of-income standard of housing affordability is challenged as arbitrary and logically inconsistent. An alternative, sliding scale of affordability is conceptualized; households paying more than they can afford on this standard are called "shelter poor." The shelter-pover scale is operationalized for elderly households of one person an two or more persons and applied to data from the 1985 American Housing Survey. It is found that 31% of all elderly households were shelter poor in 1985, compared with 45% paying 25% or more of their incomes for housing. The shelter-poverty approach suggests that the housing affordability problem is less severe among middle-income elders than the conventional standard implies, but more severe among low-income elderly. Some of the policy implications of the findings are briefly sketched, in terms of income supports as well as housing provision.     

UNRAVELING THE ECONOMIC PARADOX OF FEMALE-HEADED HOUSEHOLDS IN MEXICO: The Role of Family Networks

An extensive amount of research has shown that female-headed households are among the most disadvantaged in the United States. By contrast, households headed by single mothers in Mexico have median per capita income levels that are the same or higher than those headed by men and are no more likely to be living in poverty. These findings are surprising, given the many disadvantages that Mexican women face in the labor market and the added difficulties for single mothers of managing work and family life. We propose four explanations for the relatively high income levels of female-headed households in Mexico: (1) female heads' more advanced stage in the life course compared to male heads, (2) the greater financial support they receive from extended family members, (3) the international migration of the partners of female heads, and (4) a selection process whereby only women with sufficient income head their own households, while others move into households headed by someone else. Using a nationally representative survey we find that economic transfers from relatives living within the country and abroad, as well as a selection effect explain female-headed households' relatively high income.     

Unlocking Housing Equity for Pensions in Urban China

This article examines the extent to which a reverse mortgage may improve the income of an elderly household. This question is analyzed in the context of an aging society where the existing Confucian contract of filial piety has been eroding with the advent of economic and demographic transitions underway in contemporary China. We use data from a China Household Finance Survey that was administered in 2011 covering 949 elderly households from 22 provinces. We use models from the literature to calculate the incremental gains to income from the use of a reverse mortgage. The findings are revealing in terms of the potential gains from the use of reverse mortgages. On average, an elderly homeowner makes a monthly mortgage payment of RMB ¥1,383; a reverse mortgage for the same household raises monthly income by RMB ¥1,388 or 29%. The major beneficiaries of a reverse mortgage are single and elderly individuals possessing significant housing equity and living in the more developed regions. Overall, the reverse mortgage provides a means for society to allow the elderly access to income without being a burden on the state.     

Sex Ratio and Family Structure in the Nonmetropolitan United States

The sex ratio hypothesis maintains that the ratio of marriageable men to marriageable women can have major implications for family formation and structure. Despite extensive research attention, the sex ratio hypothesis has yet to be tested on general nonmetropolitan populations. This study of nonmetropolitan counties in the United States found strong support for the sex ratio hypothesis. Counties with low sex ratios (shortage of men) had lower proportions of married couple households and a corresponding higher proportion of female-headed households. These low sex ratio counties also had fewer adults married, and a lower proportion of their children living in married couple households with a higher proportion of children living in female-headed households.     

Expenditures on children by female-headed households

The 1982–84 Consumer Expenditure Survey data are used to analyze expenditures made by nonpoor female-headed households for child-related goods and services. These child costs are measured using Engel's (1895) food share equivalency methodology, previously used by Espenshade (1984) to analyze child-related expenditures in two-parent households. Results show that single, female-headed households on average spend about $112,000 to $142,000 in 1990 dollars to raise a single child to age 18. Findings are also compared with those of two other recently published studies of single-parent child cost estimates. Professor Douthitt's research interests include analysis of the effects of family composition on money and time expenditures. Professor Huh's current research interests include analysis of gender roles and family time use.     

The Roles of Relationship With Family and Life Values in the Housing Choices of Elderly Koreans

Housing choice is a significant factor in forecasting the housing market. In an aging population in which the wealth of the elderly is found mostly in housing equity, the housing choices of the elderly are an increasingly important yet underrepresented research theme. In addition to lower income and greater leisure time, the change of family relationships of the elderly are likely to result in significantly different housing choices from those made by younger groups. This article investigates the roles of family relationships and life values in the housing choices (tenure and location) of elderly Koreans. Subjective life satisfaction and propensity for expenditure were found to be significant determinants in the choice of housing tenure, whereas the choice of location is influenced by circumstances, especially their relationship with their children. These findings provide new insight into the Asian housing market, in which the elderly of traditional large families have a children-oriented mindset and maintain a geographic proximity with their children despite a growing trend toward family nuclearization.     

Housing Valuation,Wealth Perception,and Homeowners’ Portfolio Composition

This study explores the link between wealth perception from an appreciation of the residential property price and homeowners’ preference toward asset categories pooled by risk. Household survey data for Portugal were used to build shares of low, medium, and high risk assets representing fractions of household’s total wealth. Data showed incomplete household portfolios along with housing capturing the largest share of households’ wealth, in line with the literature on composition puzzles. The findings indicate robust empirical evidence that the rate of housing valuation is an indicator of households’ wealth perception. When the housing price appreciates with respect to its initial cost, households suffer an endowment effect and tend to increase diversity in their portfolio, expanding the holdings of safe deposits as they raise the share of high risk assets.     

A Study of Residential Condition and Satisfaction of the Elderly in China

This article investigates the current housing reality and subjective appraisal of the elderly in China by presenting the latest empirical evidence. Based on a literature review, survey data of September 2009 were analyzed, which included 692 Chinese households with a focus on their elderly members. Major findings were the following: (1) affordability was an outstanding issue, with 56.6% of the elderly respondents feeling overburdened by housing costs; (2) facilities in the homes were less of an issue than their community facilities, which were inadequate especially for the handicapped; (3) the elderly respondents as a whole seemed to enjoy their housing property, though significant differences in homeownership and residential satisfaction were found among them; (4) differences were also found among the elderly in terms of access to healthcare (including emergency help), transportation, and housing environment; and (5) residential satisfaction of the elderly were related to their occupational status before retirement, income, health, distance to healthcare facilities, living arrangements, homeownership, housing conditions, social contacts/visits, and gender. Implications of the findings are discussed for research and policy considerations.     

Urban Revitalization and the Elderly:

Since the mid-1970s some evidence exists that some American cities are being "revitalized." This paper presents empirical evidence on the effects of revitalization on the elderly in three neighborhoods in Washington, D.C., Boston, and St. Paul. Evidence from three cities shows that citywide data do not show any signs of strong revitalization, reinforcing the view that it is a very localized neighborhood phenomenon when it exists. There is no consistent evidence that the elderly perceive great changes in these three neighborhoods; in each neighborhood, members of the majority race feel more positively about neighborhood changes. Changes in people, and changes in safety and security, are the most commonly perceived neighborhood changes. The housing consumption of many of the elderly, particularly homeowners, is not related to their current income. Public or private programs which increase their mobility and enable them to augment their current income by obtaining annuities backed by housing could increase their welfare at little or no cost to government.     

Housing affordability among elderly female heads of household in nonmetropolitan areas

This study investigates the extent and nature of housing affordability for elderly nonmetropolitan female heads of household using data from the Panel Study of Income Dynamics. The results indicate that over one-third of elderly nonmetropolitan female heads of household experience housing poverty and that those who rent, who have fair to poor health, and who are minorities are particularly vulnerable. Housing affordability, measured by the concept of housing poverty, identifies households struggling to meet basic needs while the conventional 25% of income for housing expenditures ratio identifies a larger population. The findings suggest the need for multifaceted public policies to address the problem of housing poverty. Her research interests include housing affordability, housing and community vitality, and decision making. She received her Ph.D. from Purdue University. Sooyoun Park is in the same department as a Project Assistant on a USDA-funded research project entitled “Housing Affordability in Rural Areas,” which is a joint project between Nebraska and Wisconsin. Her research interests focus on housing management behavior in relation to housing expenditure burden. She received her Ph.D. from the University of Nebraska-Lincoln.     

Expensive Children in Poor Families: Out‐of‐Pocket Expenditures for the Care of Disabled and Chronically Ill Children in Welfare Families

A significant minority of poor families care for children with disabilities and chronic illnesses. This study is among the first to explore private costs resulting from children's disabilities among low‐income families. We find that almost half of the sample of California AFDC families with special‐needs children incurred some direct, out‐of‐pocket expenses in the preceding month, and about 20% incurred total costs exceeding $100. We also estimate lost employment income among low‐income mothers caring for children with disabilities. We conclude that both out‐of‐pocket expenses and foregone earnings represent a substantial burden for many low‐income families with special‐needs children, and we discuss the policy implications of these findings.     

The Labor Supply of Female Heads of Household: Comparisons With Male Heads and Wives*

This paper compares a model of labor supply for female heads of household, male heads, and wives. Not only have female-headed households increased significantly as a proportion of all households in recent years, but these households are also more likely to be in poverty than are other households. Yet, the determinants of labor supply for this increasingly important demographic group still are largely unknown. Analyses are performed on a sample of employed female and male heads and wives from the 1976 Survey of Income and Education. We examine the effects of wages, unearned income, number of children, and several other variables on hours worked per year, allowing for race interactions. We find that female heads and wives are similar in the effects of wages on their labor supply, while female and male heads are similar in the positive effect of children. We conclude that although financial need, as evidenced by low wages and children, increases female heads’labor supply, employment in more advantaged, non-female dominated jobs and core industries is needed to promote their full participation in the labor force.