CPSP welcomes Dr. José Pacas, a visiting scholar from University of Minnesota, from October 3rd to the 17th. Dr. Pacas will share his important work including the factors influencing poverty transitions and the effect of the Supplemental Poverty Measure’s geographic adjustment on the measurement of rural poverty. His academic research has focused on using Census data to study labor markets, poverty, immigration and racial/ethnic disparities. CPSP is hosting through our partnership in the U.S. Collaborative of Poverty Centers. The Institute for Research on Poverty Scholar-in-Residence Program strives to support U.S. based poverty scholars from diverse backgrounds. We are proud to support this important initiative and uplift the work of talented scholars.
The Economic Mobility Act (EMA) was introduced by Representative Richard E. Neal and benefits Americans who traditionally do not get much from government tax benefits. We find that the EMA of 2019 would make a substantial investment in reducing poverty, lifting over 4 million Americans, half of whom would be children, out of poverty. We find that the bulk of the EMA's antipoverty impact is driven by the expansion of the Child Tax Credit to include all children, including the most disadvantaged children.
A carbon tax, while a popular policy proposal, is highly regressive. Pairing a carbon tax with a universal dividend—a cash benefit to all citizens—makes the policy more politically and socially viable. However, decisions on who to include as the dividend beneficiaries—and whether or not children count—affect poverty rates. We find that providing carbon dividends to all adults and children would reduce adult poverty and child poverty. However, limiting carbon dividends to adults only would increase child poverty. If children are not counted, many working class families would be taxed into poverty.
About one in six New York City adults reported taking care of an ill or disabled relative; this rate held across demographic groups. Using Poverty Tracker data, we find that many New York City caregivers experience financial, emotional, and physical difficulties related to caregiving. Caregivers with health issues or lower incomes were more likely to face difficulties. Four in ten caregivers have used services, such as support groups or respite care, to help with caring for family members.
Using Poverty Tracker data, we find that nearly half of New Yorkers would not be able to cover an unanticipated $400 expense. Moreover, at every income level, racial and ethnic minorities in New York are markedly less likely to be able to cover such an expense with cash. These findings reveal both a city and a nation in which nearly half of its citizens are unprepared for a modest emergency expense without relying on friends, family, or creditors to help pay the cost.
The Poverty Tracker housing module provides a first look at the experiences and trajectories of New Yorkers who are forced out of their housing. We find that over 100,000 New Yorkers are forced out of their housing within a year. Further, these forced moves and evictions play a role in concentrating poverty in New York City—people were more likely to relocate to higher poverty areas after being forced to move. These findings underscore the importance of the policy reforms that city and state lawmakers are instituting to promote housing stability.
The Center on Poverty and Social Policy at the Columbia University School of Social Work is seeking a postdoctoral scholar with a PhD in economics, public policy, demography, social work, sociology, or a related discipline, to conduct cost benefit analyses of policy proposals related to poverty, economic security, and mobility.
In a new study in Socio-Economic Review, Parolin finds that racial inequities in states’ administration of the Temporary Assistance for Needy Families (TANF) program contribute meaningfully to the black-white child poverty gap. His study shows that states with higher shares of black residents are less likely to prioritize the ‘provision of cash assistance’, but more likely to spend TANF funds on the ‘discouragement of lone motherhood’. Removing the inequities in states’ TANF spending priorities would reduce the black–white child poverty gap by up to 15%—comparable to the reduction effect of moving all children in single-mother households to two-parent households. Read more at the Atlantic.
In recent months, several policy makers have discussed proposals for ambitious jobs programs, including Representative Ro Khanna, and Senators Cory Booker, Kirsten Gillibrand, and Bernie Sanders. In this brief, we examine how a national subsidized jobs program would affect poverty rates. Our analysis is modeled on the comprehensive employment program put forth by California Rep. Ro Khanna. In this joint report by the Georgetown Center on Poverty and Inequality and the Center on Poverty and Social Policy, we find that such a program would reach millions of U.S. workers left behind in today’s economy, reducing the poverty rate among participants by nearly half.
The current federal Child Tax Credit provides up to $2,000 per child per year to qualifying children, but low-income families lose out because they do not have enough earnings to qualify for the full benefit. This brief documents who is currently “left behind” in terms of realizing the full benefits of the federal Child Tax Credit because of the CTC’s earnings requirement, finding that those left out are disproportionately children of color, those in families with young children, those with single parents, and those who reside in rural areas. Adopting a more equitable, fully-refundable Child Tax Credit that is not tied to earnings would effectively remedy these inequities and meaningfully increase the after-tax incomes of those who are currently left behind.
One in five New Yorkers lives below the poverty line— a statistic that underscores the local interest in the poverty implications of policy proposals arising from the 2020 presidential campaign season getting underway. In recent months, Democratic contenders have put forward a variety of policy proposals that aim to reduce poverty across the country. In this brief, we focus specifically on New York City and report on the potential anti-poverty impacts of some of the most prominent tax credit proposals. We analyze two renter’s credit proposals: the Rent Relief Act (RRA) and the Housing, Opportunity, Mobility, and Equity Act (HOME); two EITC reforms: the Grow American Incomes Now (GAIN) and Livable Incomes for Families Today (LIFT); and the American Family Act (AFA). These proposals have the potential to reduce poverty in New York City by 10 to 38 percent, and deep poverty by 10 to 27 percent.
Expanding the Child Tax Credit (CTC) at the state level could lift millions of children out of poverty and help families who benefited little or not at all from the 2017 federal expansion of the CTC, according to a 50-state report released today by the Institute on Taxation and Economic Policy and the Center on Poverty and Social Policy at Columbia University.
The report,The Case for Extending State-Level Child Tax Credits to Those Left Out: A 50-State Analysis, outlines two bold options for creating state-level CTCs. The first would reduce child poverty by at least 15 percent in all but four states. The second, more ambitious option would reduce child poverty by at least 25 percent in all states and up to 45 percent in more than half of states.
A proposed rule change to the food stamp (SNAP) program would alter the way in which states can exempt local areas from federal work requirements by restricting waivers to those areas with a local unemployment rate of 7 percent or higher. But, as our latest research brief demonstrates, the labor market conditions faced by those most likely to be subject to work requirements are substantially worse than the 7-percent floor. The local employment prospects for those potentially affected by this new rule vary widely among subgroups at higher risk, including women, non-white individuals, and those with a high-school education or less. Many of those affected may be unable to find adequate work to meet the rule's new work requirements.
Earlier this year, Robin Hood added a series of questions about New Yorkers' perceptions of opportunity and fairness to the Poverty Tracker. The results, highlighted in the latest Poverty Tracker report, are striking. Most New Yorkers view the economy as unfair and opportunity as limited, but they are also optimistic about the future, and optimism is highest among those in the most difficult circumstances. These results provide new details and perspectives that will help to inform fight against poverty in New York City.
The American Family Act's (AFA) proposed reforms to the Child Tax Credit (CTC) present an opportunity to transform the credit into one that works for all children, not just those whose parents earn enough to qualify. We find that the AFA would move 4 million children out of poverty and cut deep poverty among children in half. If the CTC’s credit values were to increase, as they do in the AFA, but with the credit still tied to earnings, this impact would be greatly reduced, and children with the fewest resources would again be left out. Even a less generous hike in the credit value alongside the elimination of the earnings requirement would do more to reduce child poverty than a more generous credit tied to earnings.
Reducing poverty and inequality is developing into a central issue in the conversation around the 2020 presidential election. This brief contributes to this conversation by simulating the potential impacts of various policy proposals put forward by 2020 candidates, including estimated costs, anti-poverty effects, and distributional implications of proposed plans. All of the proposals that we simulate here involve new or expanded benefits administered through the tax system. We find that each of the five proposals makes a considerable dent in the poverty rate, though impacts vary across different populations and by the estimated costs and targeting of each proposal.
According to the Congressional Budget Office, the distribution of wealth in the United States has grown increasingly unequal over the past half-century, especially along racial lines. Lawmakers and researchers have proposed to address the issue by introducing universal “baby bonds,” paid to each newborn in the United States and preserved until the individual reaches young adulthood. By tying bond values to net worth rather than to income, the proposed scheme intends to better address the extremely persistent racial disparities in net wealth.
A new study by Naomi Zewde, a postdoctoral research scientist at the Center on Poverty and Social Policy, finds that the policy would considerably narrow wealth inequalities by race while simultaneously improving the net-asset position of all young adults and alleviating the increasing concentration of wealth at the top.
For many low-income households, losing Medicaid coverage means entering poverty. The current administration has called on states to impose work requirements on Medicaid beneficiaries. Last year, three states began requiring documentation of employment for Medicaid eligibility and seven more states have similar proposals pending. The impact of such legislation goes beyond the often critically important loss of healthcare. Loss of Medicaid means an increase in medical-out-of-pocket spending, and those families subject to increased medical costs are vulnerable to falling into poverty. In our latest brief, we simulate the impact of work requirements on medical expenses and poverty. We find that close to 3 million individuals would lose coverage, annual medical expenses could rise by over $1,000 per family losing coverage, and over 130,000 Americans would enter poverty if work requirements were imposed on Medicaid recipients.
Costs of living vary tremendously across the US. Yet, historically, our measurement of poverty and our major antipoverty programs have not accounted for this variation. The Supplemental Poverty Measure (SPM) considers a variety of important factors that the official measure does not, including geographic variation in costs of living. This translates into different poverty thresholds for different regions. These geographic variations in the SPM poverty line have a substantial effect on the estimated antipoverty impacts of government programs. In our latest brief, we find that the main reason antipoverty programs seem to make less of a difference in high-cost areas is simply that the costs in those areas are greater. It takes more to make ends meet in high-cost areas, but government benefits do not generally reflect this fact. Ultimately, our analyses show that costs of living are critical to the accurate assessment of state-level poverty rates and the true impact of antipoverty programs.