Income Distribution Commons^™

Earnings And Income Volatility In America: Evidence From Matched Cps, James P. Ziliak, Bradley L. Hardy, Christopher Bollinger

University of Kentucky Center for Poverty Research Discussion Paper Series

In this paper we offer new evidence on earnings and income volatility in the United States over the past four decades by using matched data from the March Current Population Survey. We find that between 1973 and 2008 family income volatility rose by 38 percent, primarily as a result of higher volatility of husbands earnings and non means-tested nonlabor income. Rising family income volatility is in evidence across race, education, and family structure, and after declining sharply while young, it is increasing in the latter part of the life cycle among the skilled. The Federal tax and transfer system dampens …

Imprisonment And (Inequality In) Population Health, Christopher Wildeman

University of Kentucky Center for Poverty Research Discussion Paper Series

This article extends research on the consequences of mass imprisonment and the factors shaping population health and health inequities by considering the effects of the imprisonment rate on population health and black-white inequality in population health using state-level panel data from the United States (1980-2004). My results imply that increases in the imprisonment rate harm population health, though the effects on the infant mortality rate and female life expectancy are more consistent than are the effects on male life expectancy. My results also imply that these health effects are concentrated among blacks, implicating mass imprisonment in the persistence of black-white …

Domestication Alone Does Not Lead To Inequality: Intergenerational Wealth Transmission Among Horticulturalists, Michael Gurven, Monique Borgerhoff Mulder, Paul L. Hooper, Hillard Kaplan, Robert Quinlan, Rebecca Sear, Eric Schniter, Christopher Von Rueden, Samuel Bowles, Tom Hertz, Adrian Bell

Psychology Faculty Articles and Research

We present empirical measures of wealth inequality and its intergenerational transmission among four horticulturalist populations. Wealth is construed broadly as embodied somatic and neural capital, including body size, fertility and cultural knowledge, material capital such as land and household wealth, and relational capital in the form of coalitional support and field labor. Wealth inequality is moderate for most forms of wealth, and intergenerational wealth transmission is low for material resources and moderate for embodied and relational wealth. Our analysis suggests that domestication alone does not transform social structure; rather, the presence of scarce, defensible resources may be required before inequality …

Latino Middle Class Income-Earners In New York City In 2006, Miriam Jiménez

Center for Latin American, Caribbean, and Latino Studies

Introduction: This study examines demographic and socioeconomic factors of racial/ethnic groups in New York City in 2006 – particularly the income rates of the Latino population.

Methods: Data on Latinos and other racial/ethnic groups were obtained from the U.S. Census Bureau American Community Survey, reorganized for public use by the Minnesota Population Center, University of Minnesota, IPUMSusa. Cases in the dataset were weighted and analyzed to produce population estimates.

Results: For this study, the middle class refers to those population sectors that fall between $35,000—$59,999 and $ 60,000—$100,000 in annual personal income. Middle-class income earners account for approximately 25.7% of …

Objective And Subjective Residential Context And Urban Children’S Weight Status And Physical And Sedentary Activities, Rachel Tolbert Kimbro, Jeanne Brooks-Gunn, Sara Mclanahan

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper fills this gap by addressing two research questions: first, we ask, are the activity patterns (outdoor play and television watching) of five-year-old children living in large cities associated with children’s weight status? Second, we ask, is residential context, and neighborhood safety in particular, associated with children’s activity patterns? Consistent with past research, we find that outdoor play is negatively associated with weight status, while television watching is positively associated with weight status. We also find, unexpectedly, that the poorest children are playing outdoors the most and watching the most television. Finally, we find that three measures of residential …

Race Disparities In Birth Outcomes In The U.S. South And The Rest Of The Nation, Lenna Nepomnyaschy

University of Kentucky Center for Poverty Research Discussion Paper Series

There are well-documented and as yet unexplained disparities in birth outcomes by race in the United States, even after controlling for socioeconomic status. This paper examines the sources of disparities in low birth weight between blacks and whites in the U.S., by focusing on differences in disparities between two very distinct geographic areas, the Deep South and the rest of the country. Two findings from prior research drive the analyses: First, health overall is worse in the Deep South states; Second, race disparities are smaller in the Deep South than in the rest of the nation. A number of potential …

Externalities In The Classroom: How Children Exposed To Domestic Violence Affect Everyone’S Kids, Scott E. Carrell, Mark L. Hoekstra

University of Kentucky Center for Poverty Research Discussion Paper Series

There is widespread perception that externalities from troubled children are significant, though measuring them is difficult due to data and methodological limitations. We estimate the negative spillovers caused by children from troubled families by exploiting a unique data set in which children’s school records are matched to domestic violence cases. We find that children from troubled families significantly decrease their peers’ reading and math test scores and increase misbehavior in the classroom. The achievement spillovers are robust to within-family differences and when controlling for school-by-year effects, providing strong evidence that neither selection nor common shocks are driving the results.

Down From The Mountain: Skill Upgrading And Wages In Appalachia, Christopher Bollinger, James P. Ziliak, Kenneth R. Troske

University of Kentucky Center for Poverty Research Discussion Paper Series

Despite evidence that skilled labor is increasingly concentrated in cities, whether regional wage inequality is predominantly due to differences in skill levels or returns is unknown. We compare Appalachia, with its wide mix of urban and rural areas, to other parts of the U.S., and find that gaps in both skill levels and returns account for the lack of high wage male workers. For women, skill shortages are important across the distribution. Because rural wage gaps are insignificant, our results suggest that widening wage inequality between Appalachia and the rest of the U.S. owes to a shortage of skilled cities.

The Labor-Market Returns To Community College Degrees, Diplomas, And Certificates, Christopher Jepsen, Kenneth R. Troske, Paul Coomes

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper provides the first detailed empirical evidence of the labor-market returns to community college diplomas and certificates. Using detailed administrative data from Kentucky, we estimate panel-data models that control for differences among students in pre-college earnings and educational aspirations. Associate’s degrees and diplomas have quarterly earnings returns of nearly $2,000 for women, compared to returns of approximately $1,500 for men. Certificates have small positive returns for men and women in most specifications. There is substantial heterogeneity in returns across fields of study. Degrees, diplomas, and certificates all correspond with higher levels of employment.

Cities, Economic Development, And The Role Of Place-Based Policies: Lessons For Appalachia, Matthew Kahn

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper surveys economic research on the association between economic development and urban areas, links this summary to some important trends in economic outcomes in Appalachia in recent decades, highlights areas in need of future research on the role of urban areas as engines of economic development in Appalachia, and discusses what types of place-based policies might be effective to promote economic growth and development in the Appalachian region.

Bilingual Education And English Proficiency, Christopher Jepsen

University of Kentucky Center for Poverty Research Discussion Paper Series

English Learners, students who are not proficient in English and speak a non-English language at home, make up more than 10 percent of the nation’s K-12 student body. Achieving proficiency in English for these students is a major goal of both state and federal education policy, motivating the provision of bilingual education policies. Using data for nearly 500,000 English Learners from California, I show that students in bilingual education have substantially lower English proficiency than other English Learners in first and second grades. In contrast, there is little difference between bilingual education and other programs for students in grades three …

The Organization Of Discipline: From Performance Management To Perversity And Punishment, Joe Soss, Richard Fording, Sanford F. Schram

University of Kentucky Center for Poverty Research Discussion Paper Series

Over the past few decades, poverty governance in the United States has been transformed by the convergence of two powerful reform movements. The first, often referred to as “paternalist,” has shifted poverty governance from an emphasis on rights and opportunities to a stance that is more directive and supervisory in promoting preferred behaviors among the poor. The second, often described as “neoliberal,” has shifted governance away from federal government control toward a system that emphasizes policy devolution, privatization, and performance competition. During this period, public officials have proved remarkably willing to hand policy control over to lower jurisdictions and private …

Inequality And Human Capital In Appalachia: 1960-2000, Dan Black, Seth Sanders

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper examines changes in the earnings distribution of men age 25-64 between 1960 and 2000 in Appalachia and in the remainder of the U.S. Because Appalachia is more rural than the remainder of the U.S. we also examine changes in the earnings distribution in rural vs. urban areas. Our central finding is that there have been large differences in the evolution of the earnings distribution in rural vs. urban areas and this is the principal reason that Appalachia’s earnings distribution differs to some degree from the remainder of the U.S. We find that the bottom of the earnings distribution …

Do Adoption Subsidies Help At-Risk Children?, Kasey Buckles

University of Kentucky Center for Poverty Research Discussion Paper Series

Over half a million children in the United States are currently in foster care, many of whom are at risk for long-lasting emotional and health problems. Research suggests that adoption may be one of the more promising options for the placement of these children. The Adoption Assistance and Child Welfare Act of 1980, which provided federal funds for monthly adoption subsidies, was designed to promote adoptions of special-needs children and children in foster care.

Using data from the Adoption and Foster Care Analysis and Reporting Systems for 2000- 2006, I consider the effects of these adoption subsidies on children’s likelihood …

Socioeconomic Status, Child Health, And Future Outcomes: Lessons For Appalachia, Janet Currie

University of Kentucky Center for Poverty Research Discussion Paper Series

Appalachians are in poor health relative to other Americans. For example, the ageadjusted all cause mortality rate for Appalachian in 2006 was over 900 per 100,000 compared to a rate of 760 per 100,000 for those outside of Appalachia. This essay shows that health disparities start before birth—the incidence of low birth weight is 90 1,000 in rural Appalachia compared to 83 per 1,000 outside the U.S. These disparities continue through childhood and into adulthood. Moreover, although African Americans are generally in poorer health relative to white Americans, disparities between Appalachia and the rest of the U.S. are much greater …

Changes In The Distribution Of Income Among Single Mother Families: Murphy Brown Meets Inequality, Christopher Bollinger, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

We document the demographic and economic forces underlying changes in income inequality among single mother families over the past three decades in the United States. Using decomposable measures of after-tax income-to-needs inequality, we examine within- and between-group inequality based on education attainment, age, past marital status, race, and employment status. We also conduct income factor decompositions to quantify the relative contributions of earnings, transfers, other income, and taxes to inequality. Our results from the March Current Population Survey show that income-to-needs inequality rose nearly 30 percent between 1979 and 2005. The demographic decompositions indicate that most of the change in …

Washington Heights/Inwood Demographic, Economic, And Social Transformations 1990 – 2005 With A Special Focus On The Dominican Population, Laird W. Bergad

Center for Latin American, Caribbean, and Latino Studies

Introduction: This report examines demographic and socioeconomic factors concerning New York City based Latinos in Washington Heights and Inwood – particularly Dominicans.

Methods: Data on Latinos and other racial/ethnic groups were obtained from the U.S. Census Bureau American Community Survey, reorganized for public use by the Minnesota Population Center, University of Minnesota, IPUMSusa. Cases in the dataset were weighted and analyzed to produce population estimates.

Results: Since the 1980s the upper Manhattan neighborhood of Washington Heights/Inwood has been transformed by the immigration of a large Latino population of whom Dominicans have been the most prominent national group. Latinos made up …

Socio-Economic Mobility Among Foreign-Born Latin American And Caribbean Nationalities In New York City, 2000-2006, Howard Caro-López

Center for Latin American, Caribbean, and Latino Studies

Introduction: This study examines demographic and socioeconomic factors of racial/ethnic groups in New York City between 2000 and 2006 – particularly the Latino population.

Methods: Data on Latinos and other racial/ethnic groups were obtained from the U.S. Census Bureau American Community Survey, reorganized for public use by the Minnesota Population Center, University of Minnesota, IPUMSusa. Cases in the dataset were weighted and analyzed to produce population estimates.

Results: On the whole there was considerable variation between immigrants from different Latino national groups in New York City, with respect to economic performance between 2000 and 2006. Smaller national groups in New …

Where Do Latinos Work? Occupational Structure And Mobility Within New York City’S Latino Population, 1990 - 2006, Laura Limonic

Center for Latin American, Caribbean, and Latino Studies

Introduction: This report examines the difference in occupational changes across racial and ethnic groups in New York City as well as across Latino origin groups from 1990 to 2006.

Methods: Data on Latinos and other racial/ethnic groups were obtained from the U.S. Census Bureau American Community Survey, reorganized for public use by the Minnesota Population Center, University of Minnesota, IPUMSusa. Cases in the dataset were weighted and analyzed to produce population estimates. All figures pertain to individuals 16 years of age or older.

Results: While there has been an overall increase in employment gains in the management sector, which includes …

Distributing Discipline: Race, Politics, And Punishment At The Frontlines Of Welfare Reform, Richard Fording, Joe Soss, Sanford F. Schram

University of Kentucky Center for Poverty Research Discussion Paper Series

Numerous studies have confirmed that race plays an important role in shaping public preferences toward both redistribution and punishment. Likewise, studies suggest that punitive policy tools tend to be adopted by state governments in a pattern that tracks with the racial composition of state populations. Such evidence testifies to the enduring power of race in American politics, yet it has limited value for understanding how disciplinary policies get applied to individuals in implementation settings. To illuminate the relationship between race and the application of punitive policy tools, we analyze sanction patterns in the TANF program. Drawing on a model of …

The Effects Of Food Stamps On Exiting Welfare And Becoming Employed For Welfare Recipients, Charles Baum

University of Kentucky Center for Poverty Research Discussion Paper Series

Welfare reform’s success encouraging employment may be affected by the federal Food Stamp program because many households receive welfare and Food Stamps. Food Stamp benefits could discourage employment because benefits are reduced proportionally with income; alternatively, it could encourage employment by increasing stability and allowing more resources to be allocated toward employment-related expenses. I examine the effects of Food Stamps on exiting welfare and becoming employed for welfare recipients. Results suggest, if anything, that Food Stamps discourage employment, and such benefits may discourage transitions off welfare, too. If so, then it may be necessary to study the determinants of welfare …

Welfare Reform And Juvenile Arrests, Tami Gurley-Calvez, Bethany Claus Widick

University of Kentucky Center for Poverty Research Discussion Paper Series

Social policy, such as the legalization of abortion and the federal bans on lead in the 1970s, has been shown to significantly impact crime rates. With recent increases in juvenile arrests and violent crime rates, we explore whether further social policy—namely the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) welfare reform—has had an impact on crime.

There are various mechanisms by which the Temporary Assistance for Needy Families (TANF) program, created by the 1996 PRWORA welfare reform, may influence criminal activity, especially among older children. Many welfare recipients were required to participate in work and education activities, which …

Distributional Effects Of Programmatic Features Of Medicaid/Schip On Transitions From Private Insurance Coverage Among Us Low-Income Children: A Dynamic Approach, Adetokunbo B. Oluwole

University of Kentucky Center for Poverty Research Discussion Paper Series

The goal of this study is to evaluate the effects of Medicaid/SCHIP eligibility and programmatic features on transitions from private insurance coverage among samples of American low-income children using monthly data from the 2001 panel of the Survey of Income and Program Participation (SIPP), a nationally representative data set. The estimation approach combines multilevel modeling and event history analysis, including a robust array of variables measuring programmatic features, individual child, family, and state attributes. Logistic regression results do not indicate an adverse effect of expanded Medicaid/SCHIP eligibility on private insurance coverage. Results also suggest that states which established stand-alone SCHIP …

High School Peer Networks And College Success: Lessons From Texas, Jason Fletcher, Marta Tienda

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper uses administrative data from the University of Texas-Austin to examine whether high school peer networks at college entry influence college achievement, measured by grade point average (GPA) and persistence. For each freshman cohort from 1993 through 2003 we calculate the number and ethnic makeup of college freshmen from each Texas high school, which we use as a proxy for freshmen “peer network.” Empirical specifications include high school fixed effects to control for unobservable differences across schools that influence both college enrollment behavior and academic performance. Using an IV/fixed effects strategy that exploits the introduction and expansion of the …

Home Buying In New Orleans Before And After Katrina Patterns By Space, Race, And Income, Dan Immergluck, Yun Sang Lee

University of Kentucky Center for Poverty Research Discussion Paper Series

Natural disasters can conceivably have significant impacts on the “neighborhood sorting” of different racial or economic groups across intrametropolitan space. Using Home Mortgage Disclosure Act data we examine mortgage-financed homebuying activity within the New Orleans MSA before and after Hurricane Katrina. We find that, while the total amount of homebuying in the 7-parish New Orleans MSA was relatively unchanged between 2004 and 2006, homebuying in the city declined significantly, and declined most in places experiencing severe storm damage. We also find that after Hurricane Katrina, the proportion of homebuyers in the region and the city who were African-American or low-income …

Does Welfare Reform Work In Rural America? A 7-Year Follow-Up, Ann Tickamyer, Debra Henderson, Barry Tadlock

University of Kentucky Center for Poverty Research Discussion Paper Series

Even before the advent of welfare reform, studies of low income working and welfare dependent groups showed that low wage working women are worse off than those who combine welfare with other income sources and that most used a wide variety of livelihood strategies. This is especially the case in poor rural settings where work is scarce and additional obstacles to employment such as lack of transportation and childcare are endemic. Data from a selfadministered survey of users of human service agency programs in four counties in a distressed region of Appalachian Ohio in 1999, 2001, and 2005, provide a …

From Brown To Busing, Elizabeth Cascio, Nora Gordon, Ethan Lewis, Sarah Reber

University of Kentucky Center for Poverty Research Discussion Paper Series

An extensive literature debates the causes and consequences of the desegregation of American schools in the twentieth century. Despite the social importance of desegregation and the magnitude of the literature, we have lacked a comprehensive accounting of the basic facts of school desegregation. This paper uses newly assembled data to document when and how Southern school districts desegregated, as well as the extent of court involvement in the desegregation process over the two full decades after Brown. We also examine heterogeneity in the path to desegregation by district characteristics. The results suggest that the existing quantitative literature, which generally either …

Transitions Into And Out Of The Wic Program: A Cause For Concern?, Alison Jacknowitz, Laura Tiehen

University of Kentucky Center for Poverty Research Discussion Paper Series

Despite the health benefits of participation in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), many eligible households do not participate in WIC during pregnancy and others exit WIC after a child turns one year old. This research uses the first two waves of the Early Childhood Longitudinal Study-Birth Cohort (ECLS-B) to advance our understanding of these transitions into and out of WIC. Findings suggest that those who exhibit better economic health across a variety of dimensions are more likely to delay entry into the program or exit after a child turns one year of age.

Linking Economic Development And Poverty: The Role Of Innovation And Innovation Capacity In The South, Jeremy Hall

University of Kentucky Center for Poverty Research Discussion Paper Series

While most economic development research views poverty as a sign of need for development or poverty reduction as an outcome of successful development, this study treats poverty as an independent variable alongside contemporary measures of innovation capacity that reflect state potential for economic development, examining the combined impact of poverty and innovation capacity on economic development outcomes. The study examines the effect poverty has on economic development outcomes given levels of innovation capacity, and the effect poverty has on formation of state innovation capacity. The methodology consists of pooled cross-sectional time-series analysis with panel corrected standard errors with lags. The …

Evidence About The Potential Role For Affirmative Action In Higher Education, Braz Camargo, Ralph Stinebrickner, Todd Stinebrickner

University of Kentucky Center for Poverty Research Discussion Paper Series

In two recent cases involving the University of Michigan, the Supreme Court examined whether race should be allowed to play an explicit role in the admission decisions of schools. The primary argument in these court cases and others has been that racial diversity strengthens the quality of education offered to all students. Underlying this argument is the notion that educational benefits arise if interactions between students of different races improve preparation for life after college by, among other things, fostering mutual understanding and correcting misperceptions. Then, a fundamental condition necessary for the primary legal argument to be compelling is that …