Income Distribution Commons^™

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 …

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 …

Does Space Matter To The Employment Of Tanf Recipients? Evidence From A Dynamic Discrete Choice Model With Unobserved Effects, Shiferaw Gurmu, Keith R. Ihlanfeldt, William J. Smith

University of Kentucky Center for Poverty Research Discussion Paper Series

We study the factors affecting the employment probability of Temporary Assistance for Needy Families (TANF) recipients using recent quarterly panel data from Atlanta, Georgia. A central focus of our study is to determine whether the TANF recipient’s proximity to job opportunity and the availability of childcare affect her probability of full-time employment. Both static and dynamic models of employment choice are estimated that control for unobserved individual effects. We estimate models separately for a sub-sample of TANF recipients living in public housing, whose residential locations can be considered exogenously determined. We find substantial evidence that individual and family characteristics (such …

The Impact Of The Introduction Of Premiums Into A Schip Program, James Marton

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper examines the introduction of premiums into the SCHIP program in Kentucky. Kentucky introduced a $20 monthly premium for SCHIP coverage for children with family incomes between 151% and 200% of the federal poverty level in December 2003. Administrative data between 2001 and 2004 is used to estimate a Cox proportional hazard model that predicts enrollment duration in this premium-paying category. The results suggest that a premium reduces the length of enrollment and that the effect is much stronger in the first two months after the introduction of the premium. Similar results are not found for the non-premium category.

Devolution, Discretion, And Local Variation In Tanf Sanctioning, Richard Fording, Sanford F. Schram, Joe Soss

University of Kentucky Center for Poverty Research Discussion Paper Series

No abstract.

Does Food Stamp Receipt Mediate The Relationship Between Food Insufficiency And Mental Health?, Colleen Heflin, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

Although the Food Stamp Program is the largest entitlement program remaining in the social safety net, comparatively little is known about the potential benefits that the program may confer on recipients. In this paper we examine an important dimension of well being, mental health, and the extent to which participation in the Food Stamp Program may attenuate the effect of food insufficiency on levels of emotional distress. Using longitudinal data from a nationally representative sample of families in the Panel Study of Income Dynamics (PSID) we model emotional distress as a function of food insufficiency and other known risk factors …

Poverty And Fertility In The American South, Leonard M. Lopoo

University of Kentucky Center for Poverty Research Discussion Paper Series

This project first reports descriptive evidence of the characteristics of mothers in the American South and compares them to mothers in other regions of the country. Women in the South (and West) tend to have their children at younger ages than those in the Midwest and Northeast. Mothers in the South (and West) also have much lower levels of education and are more likely to be African American or Hispanic compared to women in the Midwest and Northeast. Next, this paper attempts to link the characteristics of the mothers in the American South to the high rates of poverty there. …

Poverty, Race And The Contexts Of Achievement: Examining Educational Experiences Of Children In The American South, Maryah Stella Fram, Julie Miller-Cribbs, Lee Van Horn

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper reports findings of a study examining child-, classroom-, and school-level factors that effect academic achievement among public school children in the South. Using ECLS-K data, we compare and contrast the learning environments in high/low minority and high/low poverty schools. A sizeable minority of Southern children attend schools that are race and/or class segregated; on multiple dimensions these schools are less desirable than are schools attended by more privileged children, and children attending these schools have lower levels of academic achievement. Results from 3-level random intercepts models show that a range of child and family factors, as well as …

Poverty Rates Of Refugees And Immigrants, Christopher R. Bollinger, Paul Hagstrom

University of Kentucky Center for Poverty Research Discussion Paper Series

No abstract.

Does Regional Variation In Multiple Measures Of Health Status Differ Across Income Levels?, Janet M. Bronstein, Shailender Swaminathan, Joshua Klapow

University of Kentucky Center for Poverty Research Discussion Paper Series

This study examines whether regional variations in health status measures are consistent across the income gradient, or whether they are more pronounced at the lowest income levels. We use data from the Community Tracking Survey, a large randomized telephone survey of residents in 60 U.S. communities. Controlling for individual risk factors and county level income inequality, lowest income individuals have poorer scores on counts of chronic diseases, global health ratings, and the physical and mental components of the SF-12. Residents of the South have poorer scores on chronic disease counts, global health and physical health than residents of the Northeast, …

Relative Prices And Substitution Across Wage, Welfare, And Disability Income, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

In this paper I exploit the fact that the social and economic reforms over the past two decades differentially affected the opportunity costs of non-participation in work, welfare, and disability programs for single mothers across different birth-year and education cohorts. This cohort variation in after-tax wages and transfer benefits is used to identify own- and cross-price elasticities of demand for and substitution across wage, welfare, and disability income over 1979 to 2001 in the Current Population Survey. To estimate these key parameters I model household preferences with a conditional Almost Ideal Demand System that admits corner solutions, nonseparability, endogenous wages …

The New Promised Land: Black-White Convergence In The American South, 1940-2000, Jacob L. Vigdor

University of Kentucky Center for Poverty Research Discussion Paper Series

The black-white earnings gap has historically been larger in the South than in other regions of the United States. This paper shows that this regional gap has closed over time, and in fact reversed during the last decades of the twentieth century. Three proposed explanations for this trend focus on changing patterns of selective migration, reduced discrimination in Southern labor markets, and lower levels of school segregation and school resource disparities in the modern South relative to the North. Evidence suggests that reductions in Southern labor market discrimination explain rapid regional convergence in racial wage gaps between 1960 and 1980. …

The Rise Of Low-Skill Immigration In The South, George J. Borjas

University of Kentucky Center for Poverty Research Discussion Paper Series

The 1990s witnessed a significant geographic redistribution of immigration away from the traditional immigrant-receiving states, mainly California, and towards other parts of the country, mainly the Southern states that have not historically been immigrant-receiving states. This paper documents the impact of this change in immigrant settlement patterns on the skill endowment of the workforce in Southern states. The empirical analysis indicates that the recent change in immigrant settlement patterns led to the rise of a sizable foreign-born low-skill workforce in the South, particularly outside Florida and Texas. This workforce developed both as a result of increased settlement of many newly …

Food Stamp Program Participation Of Refugees And Immigrants, Christopher Bollinger, Paul Hagstrom

University of Kentucky Center for Poverty Research Discussion Paper Series

No abstract.

Prospects Of Agricultural Entrepreneurship Among Resource Limited Farmers In The Central Appalachian Tobacco Belt, M’Kiaira Kimathi Miriti, Eric Scorsone

University of Kentucky Center for Poverty Research Discussion Paper Series

Agricultural entrepreneurship is receiving heightened attention as a potential means for economic revitalization of communities adversely affected by changes in the agricultural sector. In particular, resource limited farmers in the Appalachian region of the United States have been hit by major changes in the tobacco industry. Very little is known about resource limited farmers respond to changing industry conditions and policy attempts to remedy structural change. Recently, the Commonwealth of Kentucky has attempted to assist farmers in adopting new farmbased enterprises to expand their income base. However, it is unclear about the factors that drive entrepreneurial or diversification activities among …