Events that Trigger Poverty Entries and Exits*

Objective. This article examines how events—such as changes in household composition, employment status, disability status, and economic conditions—affect poverty entries and exits. We also examine whether the role these events play in poverty transitions differs in the pre‐ and post‐welfare‐reform periods. Methods. The analysis uses discrete‐time multivariate hazard models along with monthly, longitudinal data from the 1988, 1990, and 1996 panels of the Survey of Income and Program Participation (SIPP). Results. Analyses show that many events are related to the likelihood of entering and exiting poverty. Of the trigger events examined, individuals living in households that experience a loss or gain of employment are the most likely to enter and exit poverty. We also find that changes in employment are more important in the 1996 to 1999 time period—after welfare reform—than in the 1988 to 1992 time period—prior to welfare reform. Finally, changes in household composition, disability status, and educational attainment are found to play a role in throwing people into poverty and helping them exit from poverty in both time periods. Conclusions. There is no single path into or out of poverty, suggesting that multiple policies can be considered to help alleviate poverty.     

Empirical Comparison Between Capability and Two Health-Related Quality of Life Measures

The Investigating Choice Experiments Capability Measure (ICECAP) is a new preference-based measure of the extent to which a person is able to achieve attributes or capabilities related to the quality of life. Conceptually, it differs from health-related quality of life (HRQoL) as the focus is upon the ability or capacity to achieve as distinct from the current experience of the attributes. The objective of this study was to explore the empirical relationships between capability as assessed by the ICECAP for Adults (ICECAP-A) and HRQoL as assessed by the Assessment of Quality of Life (AQoL)-8D and the five-level EuroQol Five Dimensions questionnaire (EQ-5D). To compare these measures, the study employed self-reported survey data from the healthy public and from seven disease areas in five countries. Results indicate that, despite their conceptual origins, the ICECAP-A is strongly associated with the AQoL-8D and that the clear distinction between capabilities and HRQoL found in other studies is attributable to the use of the EQ-5D in the comparison and the weaker association between the EQ-5D and ICECAP-A. The suggestion that ICECAP-A should be included in evaluation studies along with a HRQoL instrument is more persuasive when the instrument is the EQ-5D. The case for its inclusion with other HRQoL instruments requires further research and evaluation.     

Do Racial Disparities in Private Transfers Help Explain the Racial Wealth Gap? New Evidence From Longitudinal Data

How do private transfers differ by race and ethnicity, and do such differences explain the racial and ethnic disparity in wealth? Using the Panel Study of Income Dynamics, this study examines private transfers by race and ethnicity in the United States and explores a causal relationship between private transfers and wealth. Panel data and a family-level fixed-effect model are used to control for the endogeneity of private transfers. Private transfers in the form of financial support received and given from extended families and friends, as well as large gifts and inheritances, are examined. We find that African Americans and Hispanics (both immigrant and nonimmigrant) receive less in both types of private transfers than whites. Large gifts and inheritances, but not net financial support received, are related to wealth increases for African American and white families. Overall, we estimate that the African American shortfall in large gifts and inheritances accounts for 12 % of the white-black racial wealth gap.     

THE LONDON BOMBINGS AND RACIAL PREJUDICE: EVIDENCE FROM THE HOUSING AND LABOR MARKET

This paper investigates the impact of the London bombings on attitudes toward ethnic minorities, examining outcomes in housing and labor markets across London boroughs. We use a difference‐in‐differences approach, specifying “treated” boroughs as those with the highest concentration of Asian residents. Our results indicate that house prices in treated boroughs fell by approximately 2% in the 2 years after the bombings relative to other boroughs, with sales declining by almost 6%. Furthermore, we present evidence of a rise in the unemployment rate in treated compared to control boroughs, as well as a rise in racial segregation. (JEL J15, J71, R21)     

Associations Between Family of Origin Climate,Relationship Self‐Regulation,and Marital Outcomes

Using dyadic data from 961 married couples from the Relationship Evaluation Questionnaire project, the current study explored the direct association between family of origin climate and marital outcomes and the indirect association via relationship self‐regulation (RSR). Results from the actor–partner interdependence model analysis indicated that family of origin climate was positively associated with marital stability directly and indirectly via the effects of RSR and marital satisfaction for both men and women. Results suggest that the experience one has in their family of origin is associated with their marital outcomes through their RSR. Actor–partner direct and indirect effects indicate that spouses' RSR may have important consequences for both partner's evaluation of the marriage. Implications for intervention and future research are discussed.     

Perception vs. reality: The relationship between low-income homeownership, perceived financial stress, and financial hardship

This research examines how homeowners and renters were impacted by the financial crisis in 2009. We build from the hypothesis that homeownership provides people a sense of stability which decreases the extent to which they feel stressed as a result of financial hardship. Our study tests whether owning a home affected either the degree to which lower-income households experienced financial hardship or the extent to which they perceived they were financially stressed. Using a sample of lower-income borrowers who obtained affordable mortgages through the Community Advantage Program (CAP) and a comparison panel of renters, we collected data on the effects of the financial crisis. From a portfolio performance standpoint, CAP loans have performed relatively well. Our analysis of the survey data finds that, although both renters and owners experienced similar levels of financial hardship, the homeowners were less psychologically stressed overall and reported feeling more satisfied with their financial situation.     

Reporting of fertility events by men and women in rural Gambia

We conducted a survey of male and female fertility in rural villages in The Gambia and compared men and women's reports of recent pregnancy events in the aggregate and of children ever born for matched couples. Despite widespread polygyny and sex differences in fertility, men's and women's reports were similar. Small sex differences in reports of recent stillbirths and neonatal deaths were found. For matched couples, husbands reported 0.23 more children ever born than their wives on average, but discordant reporting had little effect on recent marital fertility rates. Modeling of discordant reports indicates that fertility reports are more likely to be underestimated by both men and women for their earliest marriages. Reliable fertility data can be collected from men in this population.     

Does welfare reform affect fertility? Evidence from the UK

This paper provides evidence on the effect of welfare reform on fertility, focusing on UK reforms in 1999 that increased per-child spending by 50% in real terms. We use a difference-in-differences approach, exploiting the fact that the reforms were targeted at low-income households. The reforms were likely to differentially affect the fertility of women in couples and single women because of the opportunity cost effects of the welfare-to-work element. We find no increase in births among single women, but evidence to support an increase in births (by around 15%) among coupled women.