Do institutions really matter for saving among low-income households? A comparative approach

This study aims to examine the extent to which competing theories explain saving of low-income households in Individual Development Accounts (IDAs). Competing theories include the individual-oriented perspective, a social stratification perspective, and institutional saving theory. We use American Dream Demonstration (ADD) data collected at the Tulsa IDA program. Compared with the individual perspective and the social stratification perspective, institutional features explain a large part of the variance in saving outcomes measured by average monthly net deposit (AMND) and deposit frequency. Findings suggest that institutional structures encouraging low-income households to save may contribute to more inclusive asset-based policy.     

THE EFFECT OF NONCONTRIBUTORY PENSIONS ON SAVING IN MEXICO

This paper examines the effects of noncontributory pension programs at the federal and state levels on Mexican households' saving patterns using micro data from the Mexican Income and Expenditure Survey. We find that the federal program curtails saving among households whose oldest member is either 18–54 or 65–69 years old, possibly through anticipation effects, a decrease in the longevity risk faced by households, and a redistribution of income between households of different generations. Specifically, these households appear to be reallocating income away from saving into human capital investments, like education and health. Generally, state programs have neither significant effects on household saving, nor does the combination of federal and state programs. Finally, with a few exceptions, noncontributory pensions have no significant impact on the saving of households with members 70 years of age or older—individuals eligible for those pensions, plausibly because of their dissaving stage in the lifecycle. (JEL D14, J26, O12, H55)     

Utility Subsidies as Social Transfers: An Empirical Evaluation of Targeting Performance

Subsidies to residential utility customers are important in‐kind transfer mechanisms in developing countries. Do these subsidies reach the poor? This article finds the average targeting performance of water and electricity subsidies to be similar to that of other social‐transfer mechanisms using the same targeting method. The most common form — a quantity‐based consumption subsidy aiming to subsidise low‐volume customers — is highly regressive. Many geographically‐targeted and most means‐tested utility subsidies are progressive, but still exclude many poor households. Connection subsidies are an attractive alternative in low coverage areas, but they will only reach the poor if utilities extend network access to poor households and if households choose to connect.     

The case for an inhabited institutionalism in organizational research: interaction,coupling, and change reconsidered

This paper makes the case for an inhabited institutionalism by pondering questions that continue to vex institutional theory: How can we account for local activity, agency, and change without reverting to a focus on individual actors—the very kinds of actors that institutional theory was designed to critique? How is change possible in an institutional context that constructs interests and sets the very conditions for such action? Efforts to deal with these questions by inserting various forms of individual, purposive actors into institutional frameworks have created inconsistencies that threaten the overall coherence of institutional theory and move it farther from its sociological roots. To provide alternative answers, we turn to the growing line of work on “inhabited” institutions. Our exegesis of this literature has two goals. The first goal is to shift focus away from individuals and nested imagery and towards social interaction and coupling configurations. This move opens new avenues for research and helps to identify the spaces—both conceptual and empirical—and the supra-individual processes that facilitate change. This shift has important theoretical implications: incorporating social interaction alters institutional theory, and our second goal is to specify an analytic framework for this new research, an inhabited institutionalism. Inhabited institutionalism is a meso-approach for examining the recursive relationships among institutions, interactions, and organizations. It provides novel and sociologically consistent means for dealing with issues of agency and change, and a new agenda for research that can reinvigorate and reunite organizational sociology and institutional theory.

     

Targeting the reach of educational support interventions in Kenya

The Free Primary Education program introduced in Kenya in 2003 increased primary school attendance rates. However, disparities in primary school education are evident throughout the nation. Using data from the 2003 and 2008–09 Kenya Demographic Health Surveys (KDHS), this study investigates the household characteristics—in addition to poverty—associated with poor school attendance. Using bivariate analysis and logistic regression we confirm that indeed household wealth is a factor in accessing free primary education. Younger children, those living in households headed by a non-biological parent are also less likely to attend school. Moreover households in arid and semi-arid regions of the country—areas characterized by historical socio-economic and political marginalization report significantly low primary school attendance rates. Findings from this study call attention to continued education disparities in spite of the free tuition program. The study further directs policy makers on how best to deploy scarce resources to target households most unable to provide adequate educational supports to children.     

Matching deprivation mapping to urban governance in three Indian mega-cities

Recent discussions of poverty recognize its multi-dimensional character, focusing on multiple sources of deprivation that poor households experience. However, for urban planners and politicians to implement intervention programs effectively in mega-cities, knowledge on sources and spatial patterns of multiple deprivations is needed. Disaggregated analysis potentially allows them to target programs to specific locations, set priorities in line with local needs, and be efficient in the use of funding. This article maps multiple deprivations of households in three Indian mega-cities, at the electoral ward level. It uses the livelihoods approach to address the following questions: 1) Is there a spatial concentration of deprivations within cities and do poverty levels differ between them? 2) Do cities differ in the types of deprivations? and 3) do these cluster within the city? The paper compares Delhi, Mumbai and Chennai, using a multi-criteria model within a geographical information system developed for identifying hotspots of multiple deprivation. It further links the results of deprivation mapping to questions of urban governance by comparing deprivation results with data on slums currently used to target anti-poverty programs. Finally, the opportunities of using spatial data for improving priorities and efficient use of funds in poverty programs are analyzed.     

Financing low-income housing in South Africa: Borrower experiences and perceptions of banks

South Africa is facing a low-income housing crisis, with the current backlog estimated at over three million units. An obstacle in the provision of low-income housing is the difficulty encountered by commercial banks to extend loans in this market despite supporting initiatives by Government. A lack of knowledge on the borrowing behaviour, preferences and experiences of low-income households in accessing housing finance from the commercial banking sector in South Africa hampers an understanding of the reasons for these problems. This paper's contribution is to provide information on the experiences and perceptions of low-income borrowers in the housing market of South Africa, specifically in their dealings with commercial banks. Results from a survey of 653 households across five provinces of the country are provided. In the survey, a structured questionnaire was used to obtain information on the experiences and perceptions of low-income households about their access to credit and housing finance, their experience of banks, the successes in credit approval, their judgements on the suitability of banks’ home-loan products, as well as preferences with regard to prices and interest rates.     

Crisis of Natural Building Materials and Institutionalised Self-Help Housing: The Case of Grameen Bank in Bangladesh

Traditional rural housing is largely based on the use of locally available natural resources as prime building materials, usually in a process of self-help building undertaken by the community. Such housing is well adapted to a natural environment with widely available resources, and supports people's direct involvement in the construction of their dwellings. However, the advent of a cash economy and current scarcity of natural resources has greatly affected the self-help building process. In rural Bangladesh, affluent households are shifting to manufactured materials and skilled builders, and the quality of housing of low-income households is declining. For the latter, self-help is the only option, and recognition of this fact and of the increasing decline in the quality of their housing has prompted institutional intervention. This paper discusses the Grameen Bank's rural housing programme in Bangladesh which provides loans for manufactured building components for low-income rural households to build houses on a self-help basis. A review of this programme indicates some of its strengths and shortcomings in the context of scarcity of natural building materials and widespread poverty.     

Households,Families and Prospective Economic Mobility in Mexico

The study analyzed poverty as a function of households’ demographic composition using a longitudinal random sample of 4268 urban and rural households that were followed-up from 2005/6 to 2009/12 in Mexico to estimate short-term changes in living conditions. Well-being was measured as the dwelling unit’s number of rooms, water source, sanitary services, garbage disposal, and fuel. Mobility paths included not poor–not poor, poor–poor, not poor–poor, and poor–not poor. Independent variables included household composition, family characteristics, residential changes, schooling, and occupation. Female headship and older adults negatively impacted poverty, whereas economic dependents may be negatively or positively associated. Fertility incentives for low-income populations are not advisable. Working-age adults contribute only if income-generating opportunities exist locally.     

Investments in young children among low-income families

This article examines low-income parents’ monetary investments in their young children, asking how low-income families are able to afford spending on children. We investigate parental spending on child care and on goods in the home that may provide enrichment for young children. We find little evidence that households make spending trade-offs for either type of good. Instead, our results suggest that low-income households that can afford child care may be poor only temporarily and that they spend primarily when they are unable to avoid doing so because of family work patterns. For enrichment goods, parental education is a stronger predictor of spending.     

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.     

MINIMUM WAGE EFFECTS WITH OUTPUT STABILIZATION

What are the effects of legal minimum wage rates on the U.S. economy? Does minimum wage legislation promote the economic self-interest of high wage union labor and impede the economic self-interest of capitalists as our earlier research [Cox and Oaxaca 1982] suggested? This paper uses a nine sector econometric/simulation model of U.S. industry from 1975–1978 to answer these questions in the context of stabilization policies which hold aggregate real output constant. While most simulated percentage effects are small, those for the unskilled workers themselves are not. A 15.7 percent increase in the average nominal wage rate of unskilled labor, as a result of minimum wage legislation, produced an 11 percent decrease in unskilled employment, 2.2 million jobs lost, while increasing the real wage of unskilled workers by 15 percent. Simulated changes in several key variables support our earlier observations that the self-interests of labor unions, with skilled workers, conflict with those of capitalists over the issue of minimum wage legislation.     

The Factors Influencing Saving in a Matched Savings Program: Goals,Knowledge of Payment Instruments,and Other Behavior

This paper explores the saving behavior of the group of low-income households that have participated in the Australian Saver Plus matched savings program. The paper finds that a dynamic panel model represents a good technique for modeling the savings account balances of such participants. We find that, even after controlling for the unobservable individual response to the program incentive, the saving goal and education/financial literacy variables play a positive role in encouraging saving behavior. More importantly however, we find that programs such as Saver Plus are able to modify the saving behavior of individuals to the point where their prior behavior and their inherent attitude towards saving no longer play a significant role.

The Role of the Housing Allowance for the Elderly in Norway: Views of Recipients

This article concerns the housing allowance, an economic benefit provided to low-income households and the elderly in Norway. Ensuring a high quality of housing for the elderly has been a priority in the development of the Norwegian welfare state. This article is based on results from a qualitative study among elderly recipients of a housing allowance. The study shows that while these recipients viewed the financial support the allowance offered as crucial, they still felt impoverished. The study raises some questions about whether the housing allowance scheme encourages high-quality housing.     

Participation in the National School Lunch Program and food security: An analysis of transitions into kindergarten

We use variation in state kindergarten eligibility dates to explore the protective effects of NSLP participation on household food security by focusing on the research question: What is the impact of the NSLP on household food insecurity among households with a kindergarten-aged child in the Early Childhood Longitudinal Study — Birth cohort (ECLS-B)? Our modeling approach provides consistent support for the contention that the NLSP reduces food insecurity. Additionally, we find that paying full price for school lunch is associated with increases in food insecurity among our low-income sample. Sensitivity analysis demonstrates that controlling for the reduction in child care hours among low-income households does not diminish the size of the NSLP effect. Additionally, school entry is not associated with reductions in food insecurity among families whose incomes are above 185% of the federal poverty line. Finally, our findings are robust to excluding twins. This finding is consistent with a growing literature documenting the benefits of school lunch programs but is unique for the focus on the period of school entry, at time when behavioral and cognitive patterns of school outcomes are being established for the future.     

What does self-esteem have to do with behavioral health among low-income youth in Chicago?

Many studies have examined risk factors associated with poorer behavioral health among low-income African American youth, such as low school engagement, delinquency, mental health problems, drug use, and risky sex. However, fewer studies have examined protective factors for such behavioral health risk behaviors. This study sought to address this gap by examining whether high levels of self-esteem were associated with better behavioral health factors for this population. A survey was administered to a sample of 638 low-income African American adolescents in Chicago to examine the degree to which high self-esteem was associated with less delinquency, substance use, and sexual risk behaviors, and more school engagement, and whether such associations varied by gender. Stepwise linear and logistic regression models were estimated to assess the influence of self-esteem. Higher self-esteem for this sample of low-income African American adolescents was associated with lower rates of delinquency, drug use, and risky sexual behaviors and increased rates of school engagement. Gender moderated only a few of these relationships. These findings suggest that programs that promote high self–esteem alone or in combination with other resilience factors may promote better behavioral health factors for African American adolescents.     

Change Makers? Women's Microenterprises in a Bolivian City

If entrepreneurs are society's innovators, what is the role of businesspeople in poor countries — particularly, the ‘micro’ businesspeople that make up the majority? What hope for decreasing poverty and improving livelihoods do microbusinesses offer? In particular, what is the role of women microentrepreneurs, whose incomes have been understood to contribute a great deal to the well‐being of poor households? This paper is based on case studies collected in the late 1990s in Sucre, Bolivia, a context in which many women are the owners of independent microenterprises. Women in Sucre control a range of microenterprises in the commerce, production and service sectors and are recognized as businesspeople by their spouses, families and people in their community. Under such conditions of ‘empowered’ business ownership, what is the potential of these businesses to decrease poverty? The study explores the business experiences of women microentrepreneurs, their priorities, entrepreneurial abilities and the obstacles they face. It suggests the kinds of business activities which women in Sucre are most likely to undertake and the income levels which these activities generally attract. Finally, it indicates that, while women in Sucre can control resources and take advantage of opportunities as businesswomen, other constraints mean that most women's businesses have only a limited ability to decrease poverty. ‘Microenterprise development’ alone is insufficient to address the complex relationships affecting how these women and their households access resources.     

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.     

A Decade of Change: Measuring the Extent,Depth and Severity of Food Insecurity

Rates of food insecurity in the US have been rising since 2000 spiking with the onset of the Great Recession in 2008, and have remained essentially unchanged since then despite improvements in the economy. The present study employed a series of indices adapted from the poverty literature to examine the depth and severity of food insecurity across the decade by race and ethnicity among low-income households with and without children. The most rapid increases in the depth and severity of food insecurity were found among low-income households without children. Non-Hispanic White households with and without children had lower prevalence rates but steeper increases in the depth and severity of food insecurity throughout the decade. Non-Hispanic Black households with and without children were at the most disadvantaged among low-income populations.     

Tightening income documentation in a means-tested program: who stays away?

Programs using means tests to identify low-income households face a trade-off between promoting access and ensuring program integrity. The authors use a comparison-district design to estimate the effects of a pilot program to improve the accuracy of the process of certifying students for free or reduced-price meals in the National School Lunch Program. This pilot program required households to provide income documentation with their applications for these benefits. Requiring income documentation did not reduce the proportion of ineligible households getting free or reduced-price meals. Furthermore, this requirement did reduce access to the program among eligible households.