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POVERTY & The Fall of the Family By Maile Urashima Matt Valdes Symphony Smith.

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1 POVERTY & The Fall of the Family By Maile Urashima Matt Valdes Symphony Smith

2 What is poverty? “We cannot talk about poverty without talking about gender and race." (Lesson 10) Webster’s: 1)The state of being poor, lack of the means of providing material needs or comforts. 2) Deficiency in amount; scantiness. Poverty is what we define it to be. It is relative.

3 Who does Poverty Affect? Women Young Old African-Americans Hispanics Sick and disabled People living in the inner city

4 Effects Poverty Has On The Family Increased stress Possible sub-standard medical care Sub-standard nutrition (especially for expectant mothers and infants) Greater likelihood of “at risk births” Increased environmental risks and hazards Children get more encouragement to work rather than pursue an education

5 Issues That Influence Poverty In 2001 12% of all households were in poverty. Poverty line for that year was $9,214 for an individual and $17,960 for a family of four. Conversely, the poverty rate in households where the primary wage earner had finished high school, was married, had no more than two children, and worker full-time (2,000 hrs a year or more) was only 1 percent.

6 Issues That Influence Poverty Education: Not finishing high school Family Structure: Not waiting until married to have kids, and not limiting family size Work: Failure to work on a full time basis

7 Education Attaining an education is one of the most significant things an individual can do to keep from being poor. It is a fact that the poverty rate of high school dropouts is three times higher than the poverty rate among high school graduates. Higher levels of education narrow the income gap across gender and racial lines. Affirmative action is irrelevant in reducing black poverty.

8 Family Structure In 2001, only 2% of married coupled families had an income below $10,000 Of families headed by women with no spouse present, 17% had an income below $10,000 Of families headed by men with no spouse present only 8% had an income below $10,000 Income Status

9 Family Structure Cont. Of families living in poverty in 2001, 50.9% were headed by women with no spouse. 40.5% were married-coupled-families Only 8.5% were male headed families Women are more likely than men to live in poverty. Poverty Status

10 Family Structure Cont. Males and females under the age of 18 make up the largest percent of the population living in poverty as of 2001.(16.4%, 16.2% respectively) This large percentage shows that most people under 18 are working for low wages and that most families in poverty are having more than one child; this leads to those children being counted among the poverty group.

11 Comparing Races In 1996, the poverty rates were as follows: White: 11.2% Black: 28.4% Asian Pacific Islander: 14.5% Hispanic Origin: 29.4%

12 A Little History Percentage of people in poverty: Blacks Whites In 1960: 55.1% 18.1% In 2000: 22.1% 9.4%

13 A Little History Cont. Percentage of families with female head Blacks Whites In 1960: 20.9% 8.1% In 2000: 44% 12.7%

14 Dual Labor Market Theory Primary labor market consists of jobs that allow for higher wages, good working conditions, employment stability, chances of promotion, and equity of work rules. Secondary labor market consists of “dead-end” jobs, little promotion prospects, or little job security. Dualists argue that minorities are stuck in the secondary market and have little mobility to move into the primary market.

15 Work Of the issues that influence poverty, full-time work may be the most important. “Many immigrant families do well in the U.S., despite their lack of education because they tend to form stable families and work harder than many similarly disadvantaged native-born Americans.” If everyone works full-time to their level of educational attainment the poverty rate would drop 5%; if welfare benefits were doubled the poverty rate would only drop 1%.

16 Sources The Economics of Labor Markets 6 th Edition, Bruce E. Kaufman & Julie L. Hotchkiss. Thomson South Western, copyright 2003. U.S. Bureau of the Census “The Behavioral Aspects of Poverty”, Isabel V. Sawhill. Public Interest; Fall 2003 Issue 153 p79, p15. “Race and Poverty: A Forty-Year Record”, James P. Smith & Finis Welch. American Economic Review; May 1987 “Poverty, Education, and Job Opportunities”. Extended syllabus handout, Lesson 10.

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