Tag Archives: poverty

How about using half the Bezos fortune to stop US child poverty for one year?

bezos-cnn

With everyone arguing about how much money MacKenzie Bezos should get in her divorce from Jeff Bezos, CNN asked me to write an op-ed. In it I argued that they are too rich and we could make divorce easier for everyone if we taxed away more of their money. I wrote:

There is a serious fairness issue here, but it doesn’t have to do with whether MacKenzie ends up with $1 billion or $68 billion. It’s that too many people can’t realistically exercise the same individual freedom that the Bezoses have — to choose to leave a failing or abusive marriage without facing crushing economic stress or hardship.

I called it, “There is a fairness issue with in the Bezos divorce (and it’s not about how much money MacKenzie Bezos will end up with),” which they changed to “The divorce issue that Jeff and MacKenzie Bezos don’t have to worry about.”

I agreed not to post the full text here. You can read it at CNN.

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Poverty, marriage, and single mother update

With the annual Census report on poverty out, here are two quick updates.

First, updating this post, the share of all poverty (using official rates) found in single-mother families remains lower than it was from 1974 to 2000. Since 1995, as the poverty rate has gone up and down between 10 and 15 percent, the share of poor people in single-mother families has fallen. As of 2015, 34% of poor people are found in single-mother families.

singpovtrends

Marriage has declined, and single motherhood has increased, but that has not produced a poverty population more dominated by single-mother families. Of course these families are more likely to be poor than married-couple families, but they’re not the main poverty story.

Second, updating this post a little, it’s important to keep two major trends in the back of your mind when thinking about social change. The first is that marriage has declined precipitously since 1960. It’s unremitting decline is one of the major social facts of our time. The other trend to keep in mind is that poverty rates fell a lot after the 1960s, but since then have bounced around at an atrocious 10-15%. Now try to keep them both in mind at once: marriage falls, poverty goes up and down. This year’s update puts those together (sorry people who hate this kind of figure), as change in the percentage of women married, and change in the percentage of the population poor.

marpovtrends

For a recent op-ed on poverty and marriage, here’s the unpaywalled version of my essay in the Washington Post‘s Post Everything.

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Explain to me again how marriage is the problem here

This is one of those things you share with all your friends on social media.

how-marriage-is-the-problem-here

Black married parents are 2.4-times more likely to be in poverty, are 2.1-times more likely to be unemployed, and have one-ninth the median net worth compared with White married parents. So explain to me again how marriage is the problem here.

Why?

The other day I picked on someone’s fact meme, and wondered what makes these things work, without offering a constructive alternative. I can’t answer the question I asked in that post (how old are the fathers of teen mothers’ children?), but I can answer some other questions about families and Black-White inequality. So that’s what I did.

Feel free to take these facts (or any others) and make something better.

How?

Here are my sources:

Poverty: 2014 American Community Survey from IPUMS.org. It’s Black and White, non-Hispanic, householders who are married and have their own children in the household. The poverty rates were 5% for White married parents and 11.9% for Black married parents. The poverty variable goes from 0 to 501, with 0-99 being below the poverty line, so you specify the recode like this: poverty(r:0-99 “poor”; 100-501 “not poor”). Here’s how you fill out the boxes in the online analysis tool:

povacscode

Unemployment: Again, 2014 American Community Survey from IPUMS.org. It’s Black and White, non-Hispanic, householders who are married and have their own children in the household. For this one you limit it to people in the labor force (empstat(1-2)) to get the unemployment rate. I did it for men and women combined, getting unemployment rates of 3.1% for White married parents and 6.6% for Black married parents. The numbers are higher for women (3.7% versus 7.3%) but the Black/White ratio is a little worse for men (2.6% versus 5.8%). Here’s how:

unempacscode

Median net worth: I used the Survey of Consumer Finances from 2013, available here. These are also non-Hispanic Black and White parents living with children. The median net worths were $150,500 for Whites and $16,000 for Blacks (Hispanics, incidentally, have $18,750, and the rest are just coded “other”). This data set combines married people with those who are “living with partner,” so this comparison includes cohabitors. (I don’t know how that affects the results, but I’m sure there’s still lots of inequality.) I put my STATA code in an Open Science Framework project here, so feel free to play with it yourself.

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Haskins / Sawhill Moynihan Prize: The Family Inequality file

haskinssawhillmoynihanjpeg_16x9

Sawhill and Haskins (photo collage from Brookings)

The American Academy of Political and Social Science gives the Moynihan Prize each year to:

recognize social scientists and other leaders in the public arena who champion the use of informed judgment to advance the public good. The Moynihan Prize is intended to honor those who, like the late Senator, have promoted the use of sound analysis and social science research in policy-making, while contributing to the civility of public discourse and pursuing a bipartisan approach to society’s most pressing problems.

This year’s winners are Ron Haskins and Isabel Sawhill, longtime fellows at the Brookings Institution, specializing in poverty policy. Now that classes are over I’m going to head downtown to hear their speeches.

Both have appeared frequently on the pages of Family Inequality. Looking back at that record, I see that I’ve been pretty negative. Here are the highlights, in chronological order:

Four-out-of-five myths about America: During the economic crisis, Haskins and Sawhill say giving poor families more money is a mistake.

How many Black scholars does it take to have any Black scholars?: Haskins dismissal of Kathryn Edin’s research based on anecdotes from his personal experience annoys me. (Also, no Black scholars at a conference with a family inequality theme.)

Blame the poor, “We tried generosity and it just doesn’t work” edition: I accuse Haskins of spreading the “stupid and evil” meme that all the money we’ve spent on poor people didn’t “work” because we still have poverty.

A few ways Isabel Sawhill is wrong on single mothers: I argue that Sawhill misrepresents the research record as she reflects on the 50th anniversary of the Moynihan Report.

No, poverty is not a mysterious, unknowable, negative-spiral loop: I criticize Haskins (and the “consensus plan” to address poverty) for ignoring the obvious implications of the history of Social Security: when you give people money, they’re not poor anymore.

How about we stop moralizing and end child poverty tomorrow?: I object to Sawhill’s idea that poverty results from people having children before they are “financially or emotionally ready.”

US policy fails at reducing child poverty because it aims to fix the poor: I fault Haskins for his rosy view of welfare reform, and his view that “mothers on welfare, even those with young children, should be encouraged, cajoled, and, when necessary, forced to work.”

Delayed parenting and anti-poverty policy: While supporting greater access to reproductive healthcare, I raise doubts about the policy of deterring early births as an anti-poverty strategy.

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Delayed parenting and anti-poverty policy

Here’s a preview of talk today at Brown University’s population center.

My basic argument is that policies intended to prevent poverty by delaying parenthood are mostly misplaced, especially with regard to Black women. Not that delaying parenthood is bad per se, but delaying parenthood in the absence of other improvements in people’s conditions is ineffectual in the aggregate, and actually harmful for some populations.

The delayed childbearing argument features prominently in the recent “consensus” on anti-poverty strategy reached by the American Enterprise Institute / Brookings working group I wrote about here. They say:

It would be better for couples, for children, and for society if prospective parents plan their births and have children only when they are financially stable, are in a committed relationship (preferably marriage), and can provide a stable environment for their child.

Isabel Sawhill, a leading proponent of delayed childbearing as anti-poverty strategy, says in her book Generation Unbound, that she is not telling poor people not to have children, but she sort of is. She writes:

It is only fair to expect parents to limit the number of children they have to something they can afford.

The evidence I offer to help argue that this approach is unhelpful includes this paper (the actual new research for the talk), which shows the risk of infant mortality rising with parent age for Black mothers, a pattern strikingly different from White and Hispanic mothers’ (see a discussion here). Here’s that result:

Fig2

Adjusted Probability of Infant Death, by Maternal Age: White, Black, and Mexican Mothers, U.S., 2013. Predicted probabilities of infant death generated by Stata margins command, adjusted for plurality, birth order, maternal education, prenatal care, payment source, and cigarette smoking during pregnancy. Data source: 2013 Period Linked Birth/Infant Death Public Use File, Centers for Disease Control.

Of course, infant mortality is thankfully very rare, but it’s the extreme measure for the underlying pattern of women’s health. When infant mortality in a group is higher, their average health is usually worse.

I’m adding to that the following descriptive figures on children’s poverty rates according to how old their mothers were when they were born. This is by necessity limited to children who are still living with their mothers, because I used the Current Population Survey. I show this for all children (black lines), and then for those whose mothers have never married (red lines). The solid lines are official poverty-line rates, and the dotted lines use the Supplemental Poverty Measure. The latter shows lower poverty rates for children whose mothers were younger, because it reflects transfer income and welfare support as well as income from unmarried cohabiting partners.

cpsbrown

For children overall (black lines), being born to an older mother appears beneficial in terms of poverty rates. This fits the standard story, in which delaying births allows women to go further in school and their careers, and get married, as well as being more mature and so on. However, for those whose mothers remain unmarried the relationship is much weaker, and there is no relationship to the SPM. To me this undermines the policy of delay with regard to women who have low probability of marriage during their child-bearing years. Which brings me back to Black women.

I estimated the same pattern by race/ethnicity, this time just using the SPM, in a model that controls for child age, sex, nativity, geography, and mother’s marital status (ever- versus never-married). I didn’t control for education, because schooling is also an outcome of birth timing (so if young mothers don’t go to college for that reason, this would show them more likely to be poor as a result). Here’s the result:

bw-kid-predict-no-educ

For White women there is a strong relationship, with lowest poverty rates for children whose mothers were in their 30s when they were born. For Black and Hispanic women the relationship is much weaker (it actually looks very similar when you control for education as well, and if you use the continuous income-to-needs ration instead of the poverty-line cutoff).

My conclusion is that I’m all for policies that make family planning available, and U.S. women should have better access to IUDs in particular (which are much more common in other rich countries) — these need to be part of better medical care for poor people in general. But I don’t favor this as a poverty-reduction strategy, and I reject the “responsibility” frame for anti-poverty policy evident in the quotes above. I prefer education, jobs, and income support (which Sawhill also supports, to her credit). See Matt Bruenig on the Brookings “Success Sequence” and my op-ed on income support.

Ideals and intentions

Consider this from Sawhill. In her book Generation Unbound, she writes:

‘poor and minority women … themselves do not want to have as many children as they are currently having. Unintended pregnancy rates are much higher among the poor, minority groups, and the less-educated … [free, better contraception] can help poorer and less-educated women align their behavior with their intentions.’ (p. 138)

I think we need to take a little more complicated view of intentions here. She is referring to what demographers call “unintended” births, which means the woman recalls that she was not intending to get pregnant at the time — she either wanted to get pregnant some time in the future, or never. As you can see, such unintended pregnancies are very common:

unintended

However, most poor women think the ideal family size is large. Among young women, 65% of women who didn’t finish high school, and 48% of those with high school degrees but no BA, believe 3 or more children is the ideal for a family:

idealed

For lots of their births, poor women were not ready, or not planning to get pregnant. But it’s also common for poor people to never achieve their ideal conditions for having children — good job, marriage, housing, education, and so on. In that case, with the clock running on their (and their mothers’) health, unintended childbearing is more complicated than just a behavior problem to be solved. It may reflect a compromise between unachievable goals.

In addition to making sure everyone has the reproductive healthcare they need (including more effective contraception), I think we should also help people achieve their long-term ideals — including having the children they want to have — rather than (just) help them realize their short-term intentions.

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US policy fails at reducing child poverty because it aims to fix the poor

If we want to help kids, it’s time to focus on money, not marriage.

[This piece was originally published by the Washington Post at Post Everything.]

From the first federal social welfare program for Civil War widows to Social Security and the 1960s War on Poverty, government support for poor families in the United States has attempted to enforce a moral hierarchy based on marriage: Widows got pensions they were considered to have earned, for example, while single mothers got shame and stigma for their moral misdeeds.

Since the 1960s, as marriage rates have fallen and women’s employment opportunities have improved, fewer and fewer women rely on husbands for their material needs. Now, the majority of children no longer depend primarily on the income of a married father. And yet, our policies to alleviate poverty still remain focused on correcting the behavior of poor people – especially their marital behavior – rather than addressing poverty itself.

The stated goal of the 1996 welfare reform law, for instance, was not to alleviate poverty but to encourage marriage and reduce single parenthood. The problem was seen as poor character rather than poor income, and the solution was imagined as a matter of replacing the dependency of so-called “deadbeat” parents on the state with dependency on a spouse. Those who insisted on remaining unmarried were singled out for special censure: In the words of one architect of the reform effort, Ron Haskins, “mothers on welfare, even those with young children, should be encouraged, cajoled, and, when necessary, forced to work.”   Today, many policymakers still want to impose conditions on families receiving food stamps and housing support, and as of 2015, marriage-promotion programs aimed at reducing poverty through matrimony had cost the federal government nearly a billion dollars.

One wonders if the money could have been better spent. There are about 6 million poor families with children in the United States — which means nearly 1 in 5 families with children in the wealthiest nation on the planet are living in poverty. My analysis of the latest federal data shows that, on average, these families’ income — including tax credits and all sources of welfare — is about $9,000 below the poverty line. That means ensuring no children grow up in poor households would cost $57 billion a year. (To put that in perspective, that’s how much money we’d get if Apple brought back the $200 billion it has stashed overseas, and paid just 29 percent tax on it – it’s a big problem, but it’s small compared to the wealth of our society.)

We know growing up poor is bad for kids. But instead of focusing on the money, U.S. anti-poverty policy often focuses on the perceived moral shortcomings of the poor themselves. We don’t try to address poverty directly, or alleviate it; we simply try to change the way poor people behave, especially poor parents. Specifically, we offer two choices to poor parents if they want to escape poverty: get a job, or get married. Not only does this approach not work, but it’s also a cruel punishment for children who cannot be held responsible for their parents’ decisions.

Policy that addresses poverty by punishing the poor for their perceived misdeeds plays on some popular misunderstandings, especially about marriage and parenting. Many non-poor people mistakenly believe that our lax attitude toward marriage is behind the child poverty problem. That’s why a Heritage Foundation claim that marriage reduces the chance of living in poverty by 82 percent has been a staple on the Republican campaign trail this season, and welfare money has been diverted from alleviating poverty to promoting marriage among the poor.

Yes, the children of single parents face steeper odds of success than their fellow citizens whose parents are happily married. Many single parents – the vast majority of whom are women – experience chronic shortages of money, time and social support. Their children are less likely to be closely supervised, to be well prepared for kindergarten, to graduate high school, and to make it through young adulthood free from entanglements with the criminal justice system. The intuitive case for more marriage is easy to see.

How then, as the share of children born to unmarried mothers has risen from just 1-in-20 in 1960 to 8-in-20 today, is it possible that child poverty has fallen, educational attainment has risen, and (at least since the 1990s) crime rates have fallen dramatically There are two answers.

First, single parenthood doesn’t just cause these social ailments, it also reflects them. Some of these problems are merely the consequence of whatever caused their parents to be single in the first place: poverty, illness, incarceration, weak relationship skills, and so on. In other words, successful people are more likely to raise successful children and to have successful marriages. Research on marriage among poor Americans clearly shows that the majority want to be married, but they aren’t for a variety of reasons related to their poverty. Faced with poor prospects in a marriage partner, some women reason, “I can do bad by myself,” as reported in the book “Promises I Can Keep,” by Kathryn Edin and Maria Kefalas. Some couples place marriage on a pedestal, and plan to postpone it until they are financially stable. As one young man with a pregnant girlfriend put it, “I’d rather get engaged for two years, save money, get a house, make sure … the baby’s got a bedroom.” For too many, however, that moment never arrives.

Poverty clearly lowers the chance of a successful marriage, even as being single may make it harder to escape poverty. This pattern is the subject of a long-running debate among social scientists. Although we can’t agree on the exact breakdown of cause and effect, any reasonable researcher will concede it runs both ways.

But the second answer is perhaps more important for today’s poverty debates. It is that the number of single-parent families doesn’t drive the poverty rate – rather, it mostly helps determine which families and children will be poor, not how many will be. How many people live in poverty is largely the outcome of our policy choices, about jobs and wages, and support for poor families. Akey study compared poverty rates and family structure in 18 countries, finding that the United States had the highest rate of poverty among single-mother families – more than 40 percent, compared with 5 or 10 percent in the Nordic countries. No country had as large a difference in poverty rates between single mothers and the rest of the population as the United States  – that’s our unique penalty for single parenthood.

So how could we actually do it? A new report from the Century Foundation – by the respected poverty scholars Irwin Garfinkel, David Harris, Jane Waldfogel and Christopher Wimer – lays out some of the options. They take two approaches, expanding the current child tax credit (CTC), or joining much of the rich world in using a child allowance that gives families with children cash without conditions.

Our current tax policy (principally the CTC and the Earned Income Tax Credit) reduces child poverty to the shameful 17 percent it is from the catastrophic 24 percent it would be otherwise. The problem with these credits is that they only help people with jobs, leaving those who can’t work – which is most of the poorest families – without assistance. They mostly aren’t working because they don’t have valuable skills, have health problems, or can’t manage a job (or jobs) while caring for their families. Yet you need a job to claim the CTC, on the cruel logic that the government doesn’t want to “disincentivize” work. The current CTC costs about $50 billion per year but does almost nothing to help the very poor, because coercing or cajoling them into getting a job is useless. So we have 3.4 million children living in “deep poverty,” in families with incomes less than half of what the government says they need (again, after accounting for all government benefits).

On the other hand, a universal child allowance could help everyone, and it might be more popular since middle-class voters would get a check, too. Although you end up giving non-poor people money they don’t really need (some of which you could tax back), this is better than the tax credits because it more efficiently reaches the poorest families. Using a child allowance, the report says we could cut child poverty in half, and reduce deep poverty by two-thirds – for about $200 billion per year. That seems like a lot – it is, after all, about one-eighth of what the Pentagon has spent on Afghanistan, Pakistan and Iraq* – but wouldn’t you sleep better at night knowing your poorer neighbors were sleeping better at night?
What about those pro-marriage policies? In short, they have failed; despite more than a billion dollars, marriage promotion programs have produced no increase in marriage. Furthermore, just as our tax policy doesn’t help people who can’t work, marriage doesn’t help people who can’t marry workers capable of supporting them and their children. A child allowance would provide an income floor for those who aren’t married (they’ve been widowed or divorced, had abusive partners, have no one to marry – or, more rarely, don’t want to get married). And it would do so without coercing them into marriage or shaming them for being single, because all parents would get it, married or not.

Our social policy – especially in the post-1996 welfare reform era – says a spouse’s income is a good way to pay for children, and a job is a good way to pay for children, but government support is not. And the people behind our policy feel this so strongly that, rather than shape welfare policy to provide for the needs of children, they have crafted programs instead to pressure parents into either getting a job or getting married. And when neither of those is possible – or they are practically so undesirable that they may as well be impossible – then the suffering of the parent and her children is the cost of teaching that lesson to everyone else.

We know enough now to see that this approach doesn’t work: It doesn’t increase compliance with social norms on marriage and employment, and it doesn’t stop the scourge of child poverty. We can do better.

* Note: In the original I mistakenly described this as the annual Pentagon spending in that region. I have notified the Post of the error, which I regret.

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No, poverty is not a mysterious, unknowable, negative-spiral loop

I don’t have much to add on the “consensus plan” on poverty and mobility produced by the Brookings and American Enterprise institutes, referred to in their launch event as being on “different ends of the ideological spectrum” (can you imagine?). In addition to the report, you might consider the comments by Jeff Spross, Brad DeLong, or the three-part series by Matt Bruenig.

My comment is about the increasingly (to me) frustrating description of poverty as something beyond simple comprehension and unreachable by mortal policy. It’s just not. The whole child poverty problem, for example, amounts to $62 billion dollars per year. There are certainly important details to be worked out in how to eliminate it, but the basic idea is pretty clear — you give poor people money. We have plenty of it.

This was obvious yet amazingly not remarked upon in the first 40 minutes of the launch event (which is all I watched). In the opening presentation, by Ron Haskins — for whom I have a well-documented distaste — started with this simple chart of official poverty rates:

offpov-brookingsaei

He started with the blue line, poverty for elderly people, and said:

The blue line is probably the nation’s greatest success against poverty. It’s the elderly. And it basically has declined pretty much all the time. It has no relationship to the economy, and there is good research that shows that its cause at least 90% by Social Security. So, government did it, and so Social Security is the reason we’re able to be successful to reduce poverty among the elderly.

And then everyone proceeded to ignore the obvious implication of that: when you give people money, they aren’t poor anymore. The most unintentionally hilarious illustration of this was in the keynote (why?) address from David Brooks (who has definitely been working on relaxing lately, especially when it comes to preparing keynote puff-pieces). He said this, according to my unofficial transcript:

Poverty is a cloud problem and not a clock problem. This is a Karl Popper distinction. He said some problems are clock problems – you can take them apart into individual pieces and fix them. Some problems are cloud problems. You can’t take a cloud apart. It’s a dynamic system that is always interspersed. And Popper said we have a tendency to try to take cloud problems and turn them into clock problems, because it’s just easier for us to think about. But poverty is a cloud problem. … A problem like poverty is too complicated to be contained by any one political philosophy. … So we have to be humble, because it’s so gloomy and so complicated and so cloud-like.

The good news is that for all the complexity of poverty, and all the way it’s a cloud, it offers a political opportunity, especially in a polarized era, because it’s not an either/or issue. … Poverty is an and/and issue, because it takes a zillion things to address it, and some of those things are going to come from the left, and some are going to come from the right. … And if poverty is this mysterious, unknowable, negative spiral-loop that some people find themselves in, then surely the solution is to throw everything we think works at the problem simultaneously, and try in ways we will never understand, to have a positive virtuous cycle. And so there’s not a lot of tradeoffs, there’s just a lot of throwing stuff in. And social science, which is so prevalent in this report, is so valuable in proving what works, but ultimately it has to bow down to human realities – to psychology, to emotion, to reality, and to just the way an emergent system works.

Poverty is only a “mysterious, unknowable, negative spiral-loop” if you specifically ignore the lack of money that is its proximate cause. Sure, spend your whole life wondering about the mysteries of human variation — but could we agree to do that after taking care of people’s basic needs?

I wonder if poverty among the elderly once seemed like a weird, amorphous, confusing problem. I doubt it. But it probably would if we had assumed that the only way to solve elderly poverty was to get children to give their parents more money. Then we would have to worry about the market position of their children, the timing of their births, the complexity of their motivations and relationships, the vagaries of the market, and the folly of youth. Instead, we gave old people money. And now elderly poverty “has declined pretty much all the time” and “it has no relationship to the economy.”

Imagine that.

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