1. A Social Work Grand Challenge: Reducing Extreme Economic Inequality
Science for Action Kickoff
University of Denver
October 25, 2018
Dr. Trina R. Shanks
University of Michigan
School of Social Work

2. Overview Extreme Economic Inequality in the United States
A theoretical framework for thinking about economic security and child outcomes
Potential Policy Considerations

3. A Social Work Grand Challenge: Reducing Extreme Economic Inequality

4. Income Inequality
Source: Emmanuel Saez, UC Berkeley

5. Income Inequality
Source: Emmanuel Saez, UC Berkeley

6. Income Inequality
Source: Congressional Budget Office

7. Earnings Inequality
Source: Bureau of Labor Statistics

8. Source: Institute for Policy Studies and AFL-CIO

9. Source: Economic Policy Institute

10. Median Income by Race/Ethnicity

11. Wealth Inequality
Top .1%Wealth Share in the United States,
The figure plots the share of total household wealth owned by the richest .1% of families in the United States from 1913 to The unit is the family (either a single person aged 20 or above or a married couple, in both cases with children dependents if any). The top .1% is defined relative to the total number of families in the population. In 2012, the top .1% included about 160,000 families with a net wealth above $20.6 million. Source: Online Appendix Table B1 .
From: Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data *
Q J Econ. 2016;131(2): doi: /qje/qjw004 11

12. Wealth Inequality

13. The Racial Wealth Gap is Not Improving
“The Road to Zero Wealth: How the Racial Wealth Divide is Hollowing out America’s Middle Class” (Prosperity Now and Institute for Policy Studies)

14. Economic Inequality and Implications for Children

16. Source: ECLS-B, when children were 9-months
Percentages of Children Born in 2001 who Live in Advantaged and Disadvantaged Households by Race
Advantaged
Disadvantaged
Source: ECLS-B, when children were 9-months
Taken from: Shanks, T. & Simonton, S. (2011). Diverging Pathways: How Wealth Shapes Opportunity for Children. Oakland, CA: Insight Center for Community Economic Development.

17. What better predicts long-term outcomes for children: a developmentally appropriate assessment of ability as a young child or their economic and social advantage?

20. Aspects of social and economic advantage
Financial security
Secure Family
Safe Neighborhood
Quality School System

21. Shanks, T. R. & Robinson, C. (2013)
Shanks, T.R. & Robinson, C. (2013). Assets, economic opportunity and toxic stress: A framework for understanding child and educational outcomes. Economics of Education Review

22. Shanks, T. R. & Robinson, C. (2013)
Shanks, T.R. & Robinson, C. (2013). Assets, economic opportunity and toxic stress: A framework for understanding child and educational outcomes. Economics of Education Review

23. Shanks, T. R. & Robinson, C. (2013)
Shanks, T.R. & Robinson, C. (2013). Assets, economic opportunity and toxic stress: A framework for understanding child and educational outcomes. Economics of Education Review

24. Key Takeaway
While claiming the mantra of ‘land of opportunity’, we have drifted from a collective infrastructure that serves all to segregated spaces with distinct opportunity sets where families and individuals are expected to fend for themselves.
Consider: Education, Health Care, Child Care, Housing, Access to Food and Transportation

25. Potential Policy Considerations

26. Possibilities for Change -- Income
Increased earnings (minimum wage, UBI, child allowances)
Make part-time, shift and variable work more stable and humane
Expand the Earned Income Tax Credit
Expand child care to enable stable employment
Expand active employment creation
Strengthen unemployment insurance

27. Possibilities for Change -- Wealth
Reduce the role of wealth and income in building human capital
Stop privileging income from capital over income from labor
Re-deploy wealth-building subsidies in retirement
Re-deploy wealth-building subsidies for shelter
Create a new lifelong policy of inclusive and progressive wealth-building (starting with CDAs)

28. You can reach me at trwilli@umich.edu

30. Types of Policies and Programs
Individual Level (matching, incentives)
Low-Income Households
Middle-Income Households
Upper-Income Households
Collective Level (modeling, infrastructure)
Faith-based Institutions
Neighborhood Resident Associations
Civic Organizations
Sororities and Fraternities or HBCUs

31. Institutional Continuum
Working Model for a Continuum of Asset-Building Activity
Trina Shanks and Stephanie Boddie
Institutional Continuum
Faith-based Neighborhood Resident Civic Sororities/Fraternities
Institutions Associations Organizations HBCUs
Community
Level
Shared Risk Pools
for Insurance
Housing Co-ops
Investment Clubs
Micro-enterprise
Co-ops
Community Development
Corporations ( CDC)
Limited Liability
Corporation (LLC)
Venture Capital
Partnerships
Foundations
Household
Individual Development
Accounts (IDAs)
Investing EITC
Refunds
Homeownership
Employer-based
Programs (401K, 403B)
State College
IRAs plans
Real Estate
Trust Funds
Estate Planning
Family
Endowments
Low-Income Middle-Income High-Income
Households Households Households
Income Continuum