Chapter 10: Poverty- Inquisitive Questions and Definitions

This animation describes one effort to understand poverty-related social problems, the Moving to Opportunity (MTO) study conducted in several major U.S. cities in the mid-to-late 1990s. The MTO study examined the consequences of relocating poor families to low-poverty neighborhoods. What effects were measured in these families?

- among children, reduced rates of asthma and physical injury -lower stress and higher happiness levels in adults and children -better school attendance

In the wake of William Julius Wilson's research on employment and marriage patterns among the poor, what policy steps were taken in the U.S. to "make work pay"?

-A time limit was set on unemployment benefits. -Income limits for Medicaid eligibility were raised. -The federal earned income tax credit was expanded.

Which items are partial explanations for why the United States has greater income inequality than other industrialized nations?

-In the U.S., capitalism predates equalizing mechanisms like collective bargaining and progressive taxation. -Federalism and divided government lead to a patchwork solution to poverty.

Absolute Measure of Poverty

-being unable to afford food and housing -being unable to afford day care and transportation to and from work

Relative Measure of Poverty

-having a family income that is less than 50% of the national median -being unable to live a lifestyle comparable to that of one's neighbors

Which conclusions are, or follow from, Herrnstein and Murray's 1994 findings on the relationship between poverty and parenting patterns?

1. Good parenting and economic success have a common cause. 2. IQ is causally significant for poverty. 3. Government efforts to help people out of poverty are largely futile.

As part of his research, Dalton Conley interviewed a man named Marlin. Which elements of Marlin's life experience contributed to his eventually serving a five-year prison sentence for burglary?

1. Marlin's mother was an alcoholic. 2. Marlin spent time in a special education program. 3. Marlin stole to support a drug habit. 4.Marlin could not sit still and focus in school.

Three different hypotheses have been advanced about the relationship between family poverty and children's development. Apply the correct label to each scenario, to identify the hypothesis it illustrates.

1. Material deprivation Growing up in dirty, polluted environments makes children more likely to develop asthma and other health issues. 2. No effect The same personality traits that make one successful in the labor market also make one successful as a parent. 3. Parental stress Parents who work long hours at low-wage jobs may be less patient and nurturing in their child-raising habits.

What are some of the shortcomings of the welfare bureaucracy in the U.S. today?

1. Offices for certain programs are inconveniently located and have limited open hours. 2. By imposing time-consuming participation requirements, welfare makes job hunting harder.

In 1963, Mollie Orshansky tried to define poverty in terms of income relative to the cost of food. This calculation eventually became the basis for the official poverty line in the U.S. What are some of the ways in which Orshansky's definition of poverty was criticized?

1. The calculation should focus on the cost of housing instead of the cost of food. 2. The multiplier used to extrapolate from food costs to the total cost of living is too low. 3. The multiplier used to extrapolate from food costs to the total cost of living is too high.

In the U.S. today, the official federal definition of poverty is based on a 1960s-era definition in which a family's income is compared to the cost of food and other core necessities, such as housing. Whichconceptual objections this kind of definition open to?

1. What counts as a necessity cannot be defined once and for all. 2. The same necessities can have very different costs from one part of the country to another. 3. Defining poverty solely in terms of income ignores the role of wealth.

In this video, sociologist Matthew Desmond describes the consequences for a family being evicted from rental housing (3:50-6:00).

1. job loss (Desmond does not give an explanation, but presumably forced relocation and the time burden of looking for a new place make it harder for some people to keep their jobs.) 2. greater difficulty finding a new place to live 3. loss of eligibility for Section 8 assistance (An eviction goes on one's record, the same as if one committed a crime, and a record affects Section 8 eligibility.)

In this video, sociologist Mario Luis Small explains to Dalton Conley how the rejection of Oscar Lewis's culture of poverty thesis went too far. Small starts by describing Lewis's views. Which virtues did Lewis say tend to be undervalued in the culture of low-income neighborhoods?

1. sexual restraint 2. hard work 3. punctuality

The Move to Opportunity (MTO) study of the 1990s was the converse of the negative income tax of the 1960s and 1970s. The MTO study changed families' locations but not their incomes, whereas the negative income tax experiments did the reverse. Together, the results of these studies suggest that social division based on economic circumstance is a bigger source of social problems than income inequality itself.

Fill in blank -locations -income -social division -income inequality

Use the information in the figure to rank the states by cost of living, highest to lowest.

Hawaii California Washington Florida Texas Mississippi

What does Susan Mayer mean by saying that "other people's money matters"?

Other people's wealth sets our expectations of what it is reasonable to expect in life.

Which item best summarizes the "no effect" hypothesis about the relation between family income and child development?

Parental characteristics influence both family income and children's development (Parental characteristics as a common cause would explain why socioeconomic status correlates with children's developmental outcomes.)

Of the countries listed, which has the greatest income inequality?

Republic of Ireland

How does the poverty rate in the most recent year on record compare to the annual poverty rates in the years since 1960?

The current rate is about average

In the U.S., the incomes of the richest ten percent are between 5 and 6 times those of the poorest ten percent. Which country on the list comes closest to the U.S. in this measure of income inequality?

United Kingdom (ration is about 4.5 to 1)

About what fraction of Americans work for employers who offer traditional defined benefit pension plans (company-sponsored retirement)?

about 1/3 (This fraction includes members of the military, many public-sector civilian workers, and workers at some large private-sector companies with a unionized workforce, such as commercial airlines, automotive manufacturers, and public utilities.)

Incentivized IRA

an individual retirement account, funded by automatic bank transfers, with matching government contributions

IRA

an individual retirement account, funded by occasional out-of pocket payments

Social Security

mandatory payroll tax now, benefits upon retirement

401K

optional payroll deduction, sometimes with matching employer contributions