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Begin New Search Topic Poverty Content Type Working Paper Publishing Institution Institute for Social and Economic Research and Policy at Columbia University

1. Intergenerational Influences of Wealth in Mexico

Author:
Seymour Spilerman and Florencia Torche
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Using the 2006 Mexican Social Mobility Survey, this research evaluates the influence of parental wealth on several outcomes of adult children, including educational attainment, consumption level, asset holdings, home ownership, and value of residence. Two mechanisms of parental influence on economic wellbeing are explored: an indirect effect mediated by parental investment in human capital, and the direct transfer of resources. Three main findings emerge from the analysis. First, parental wealth is a strong determinant of educational attainment, net of the standard indicators of advantage regularly used in stratification research, and the influence of wealth is stronger among the most disadvantaged children (those with low cultural capital, and residing in non-urban areas). Second, the mechanism of parental influence on adult children's economic wellbeing differs depending on the outcome: In the case of consumption level, the influence is largely indirect, mediated by parental investment in offspring's human capital, while the opposite is true for children's asset holdings, where a direct transfer of resources predominates. Third, while access to homeownership is only weakly stratified by parent's and children's resources, the value of the acquired home is significantly affected by parental wealth. These patterns of influence are similar to those found in Chile (Spilerman and Torche 2004, Torche and Spilerman 2006) and they highlight the critical impact of parental wealth in less developed countries.
Topic:
Demographics, Economics, Political Economy, Poverty, and Third World
Political Geography:
Latin America, Mexico, and United Arab Emirates

2. Chinese Poverty: Assessing the Impact of Alternative Assumptions

Author:
Sanjay Reddy and Camelia Minoiu
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
This paper investigates how estimates of the extent and trend of consumption poverty in China between 1990 and 2001 vary as a result of alternative plausible assumptions concerning the poverty line and estimated levels of consumption. The exercise is motivated by the existence of considerable uncertainty about the appropriate poverty lines to apply and the level and distribution of resources in China. The methodology of this paper focuses on the following sources of variation: alternative purchasing power parity conversion factors (used to convert an international poverty line), alternative estimates of the level and distribution of private incomes, alternative estimates of the propensity to consume of lower income groups, and alternative consumer price indices. It is widely believed that substantial poverty reduction has taken place in China in the 1990s, and we find this conclusion to be robust to the choice of assumptions. However, estimates of the extent of Chinese poverty in any year are greatly influenced by the assumptions made. China's record of reducing consumption poverty is dramatic. It is unclear whether this achievement has been comparable across regions and whether there have been corresponding national improvements in other aspects of human well-being.
Topic:
Markets, Political Economy, and Poverty
Political Geography:
China

3. Policymaking and Caseload Dynamics: Homeless Shelters

Author:
William McAllister
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Many social problems can be understood as “conceptual caseloads”, e.g., people in poverty, and actual programmatic caseloads are a major, specific concern for policymakers and public administrators. Thus, a crucial and fairly general concern is how caseloads—whether conceptual or programmatic—can be reduced. To address this concern, officials often fall back on politically or intuitively attractive ideas—preventing people from entering caseloads, for example. Failure to incorporate caseload dynamics, however, may mean prevention and other caseload reduction policies will deliver much less than promised, and may cause caseloads to grow. In this paper, we first show how caseload size depends only on the number of entrants to a caseload and the rate at which people leave a caseload. With this framework in mind, we then address two common, seemingly appropriate policy responses: preventing entrants and hastening leaving. However, we show how too little is now known about homeless prevention to pin high hopes on its utility and that some social welfare problems, like homelessness, may be too inhospitable for prevention's logic. We then explain how allocating resources to hasten leaving is not as straightforward as policymakers have assumed but rather must recognize caseload dynamics to avoid unintended growth. We conclude by explaining some limits and opportunities in using caseload dynamics for policymaking.
Topic:
Conflict Resolution, Economics, Government, and Poverty

4. Living at the Edge: America's Low-Income Children and Families

Author:
Hsien-Hen Lu, Younghwan Song, Mary Clare Lennon, and J. Lawrence Aber
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
By analyzing data from the Current Population Survey March Supplements, Living at the Edge explores the following questions about children in low-income families in the United States: What are the overall changes in the low-income and poverty rates for children over the past quarter century? How has the population of children in low-income families changed over the past decade? Which children are more likely to live in low-income families? How have changes in parental employment status affected the likelihood of children living in low-income families? What are the state by state variations in child low-income and poverty rates, and how have these changed in the last decade? How does a more inclusive definition of family income and expenses affect our understanding of the poverty and near-poverty rates of children in low-income families? This report helps document significant improvements in the child lowincome rate as well as the significant decrease in the proportion of children who relied on public assistance during the 1990s. However, Living at the Edge also finds a notable increase in the share of children who lived in near-poor families (those with incomes between 100 and 200 percent of the poverty line) among children in low-income families during the 1990s. Many disadvantaged groups of children, including those with young parents, minority parents, parents with limited education, or unmarried parents, were less likely to live in poor or lowincome families in the late 1990s than such children a decade earlier. The improvement in the child low-income rates of these disadvantaged groups was closely related to an increase in parental employment during the late 1990s. However, the low-income rate worsened for children whose more educated parent had a high-school diploma but no college education. For children of many disadvantaged social groups, parental employment appears to do less to protect them from economic hardship then it did a decade earlier. The groups that suffered the most in reduced economic security given parental employment status were those in the medium risk ranks (children in families with at least one parent between ages 25 to 39, children whose more educated parent had only has a high school diploma, and in father-only families). The report also notes that the official measure of poverty ignores the burden of medical and work related expenses as well as taxes and therefore tends to underestimate the share of children in near-poor and low-income families facing economic insecurity. Finally, we discuss the policy implications for our findings.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
United States

5. Active Patients' in Rural African Health Care: Implications for Welfare, Policy and Privatization

Author:
Kenneth L. Leonard
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
The 'active patient' is introduced in this paper. She is the same person as the rational peasant that we have known for at least three decades. She is a rational agent seeking health care in an environment characterized by market failures (particularly agency in the supply of medical quality) and imperfect institutional responses to these failures. We show evidence that patients significantly increase their welfare by choosing between various different providers and matching their illnesses to the resources that are available at these different providers. This paper suggests that continuing to view patients as passive participants in the health care market gives way to misleading policy suggestions and may in fact reduce the welfare of patients.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Africa