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Understanding Changes in Poverty

August 27, 2014 Comments off

Understanding Changes in Poverty
Source: World Bank

Understanding Changes in Poverty brings together different methods to decompose the contributions to poverty reduction. A simple approach quantifies the contribution of changes in demographics, employment, earnings, public transfers, and remittances to poverty reduction. A more complex approach quantifies the contributions to poverty reduction from changes in individual and household characteristics, including changes in the sectoral, occupational, and educational structure of the workforce, as well as changes in the returns to individual and household characteristics. Understanding Changes in Poverty implements these approaches and finds that labor income growth that is, growth in income per worker rather than an increase in the number of employed workers was the largest contributor to moderate poverty reduction in 21 countries experiencing substantial reductions in poverty over the past decade. Changes in demographics, public transfers, and remittances helped, but made relatively smaller contributions to poverty reduction. Further decompositions in three countries find that labor income grew mainly because of higher returns to human capital endowments, signaling increases in productivity, higher relative price of labor, or both. Understanding Changes in Poverty will be of particular relevance to development practitioners interested in better understanding distributional changes over time. The methods and tools presented in this book can also be applied to better understand changes in inequality or any other distributional change.

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Neighborhood Change, 1970 to 2010: Transition and Growth in Urban High Poverty Neighborhoods

August 26, 2014 Comments off

Neighborhood Change, 1970 to 2010: Transition and Growth in Urban High Poverty Neighborhoods (PDF)
Source: Impresa Consulting

This paper analyzes changes in high poverty urban neighborhoods in the nation’s large metropolitan areas between 1970 and 2010. Using census tract data to track neighborhood performance, and defining high poverty as neighborhoods with a poverty rate of greater than 30 percent, this paper finds:

About 1,100 census tracts in urban neighborhoods in the nation’s large metropolitan areas had poverty rates in excess of 30 percent in 1970. These tracts had a population of 5 million, of which nearly 2 million were poor.

High poverty was persistent in these neighborhoods. Four decades later, 750 of these tracts—home to about three-quarters of the 1970 high poverty neighborhood population—still had rates of poverty in excess of 30 percent.

Though poverty persisted, these high poverty neighborhoods were not stable— in the aggregate they lost population, with chronic high poverty neighborhoods losing 40 percent of their population by 2010.

Welfare Rules Databook: State TANF Policies as of July 2013

August 25, 2014 Comments off

Welfare Rules Databook: State TANF Policies as of July 2013
Source: Urban Institute

The Welfare Rules Databook provides tables containing key Temporary Assistance for Needy Families (TANF) policies for each state as of July 2013, as well as longitudinal tables describing selected state policies from 1996 through 2013. The tables are based on the information in the Welfare Rules Database (WRD), a publicly available, online database tracking state cash assistance policies over time and across the 50 states and the District of Columbia. The Databook summarizes a subset of the information in the WRD. Users interested in a greater level of detail are encouraged to use the full database, available at http://anfdata.urban.org/wrd.

Cost Containment in the WIC Program: Vendor Peer Groups and Reimbursement Rates

August 21, 2014 Comments off

Cost Containment in the WIC Program: Vendor Peer Groups and Reimbursement Rates
Source: USDA Economic Research Service

This study looks at current WIC cost containment strategies in an effort to make them more effective, enabling the program to serve more participants with its fixed budget resources.

Economic Characteristics of Households in the United States: 1st, 2nd, 3rd and 4th Quarters 2012

August 20, 2014 Comments off

Economic Characteristics of Households in the United States: 1st, 2nd, 3rd and 4th Quarters 2012
Source: U.S. Census Bureau

This collection of seven tables for each quarter comes from the Survey of Income and Program Participation. The tables that examine the role of government-sponsored benefit programs and the labor market among the nation’s people and households within the economic climate of each quarter of 2012. Specifically, the tables present statistics on average monthly income, participation in government-sponsored social welfare or social insurance programs, and labor force activity during each period.

New Policy Makes It Easier for Community Eligibility Schools to Participate in E-Rate Program

August 19, 2014 Comments off

New Policy Makes It Easier for Community Eligibility Schools to Participate in E-Rate Program
Source: Center on Budget and Policy Priorities

A new Federal Communications Commission (FCC) policy will make it easier for school districts adopting the Community Eligibility Provision — through which they can serve meals at no charge to all students — to apply for discounted telecommunications services and Internet access through the E-rate program. The new E-rate policy streamlines the discount calculation process for community eligibility schools so that they do not face any additional burdens relative to other schools.

The Community Eligibility Provision, a relatively new option within the federal school meal programs, eliminates school meal applications. Schools are eligible to adopt the Community Eligibility Provision based on the share of their students who are low-income, as assessed by other programs. Schools that adopt community eligibility must serve all meals at no charge. Community eligibility has been implemented a few states at a time over the past three years and is available nationwide for the 2014-2015 school year.

Since community eligibility schools do not determine which individual children are eligible for free or reduced-price meals, the E-rate program has developed ways for them to calculate their E-rate discount level. For school years 2011-2012 through 2014-2015, the FCC (which sets E-rate policy) directed community eligibility schools to continue using the share of students approved for free or reduced-price meals in the year prior to implementing community eligibility for purposes of determining their E-rate discount. Schools with 75 percent or more of their students approved for free or reduced-price meals receive a 90 percent discount; most schools that adopt community eligibility likely fall into this category.

In-work poverty in the EU

August 19, 2014 Comments off

In-work poverty in the EU
Source: European Parliamentary Research Service

Having a job yet still being unable to make a living: In-work poverty is a phenomenon that affected 9,1 percent of the working age EU population in 2012. The rate of those in work and at risk of poverty has been on the rise since 2005. It applies to those with an income below 60% of the national median. In the aftermath of the crisis, wage polarisation and an increase of part-time work have led to higher rates of in-work poverty in Europe. At the same time, nearly a quarter of the overall EU population is facing the risk of poverty or exclusion.

Employment does not always protect from poverty. Whether a person is becoming “working poor” is decided by working status and household income. Analysts often see a combination of low pay, high needs and weak ties to the labour market as root causes. In general the risk is higher for single households (sole earners, especially women with dependent children), young workers and temporarily employed people as well as those with low levels of education. Paradoxically, men face a higher risk than women, even though women are more often in part-time employment with a lower salary. Yet women are more often secondary earners, meaning that the household income does not depend only on them.

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