Publications on Poverty

In 2004, 36.6 million people--or 12.6 percent of the U.S. population--were poor. The "poverty gap"--the amount of additional income required to remove all Americans from poverty--was $105.6 billion. Poverty rates were highest for African Americans, Hispanics, women, and persons under 25. Without government benefits, 61 million people would be poor. Social Security and other social insurance programs remove 21 million people from poverty. Means tested programs remove 3 million people from poverty. If food and housing assistance were counted as income for poverty purposes, an additional 7.6 million people would be counted as not poor.

Families in HUD's Moving to Opportunity program had the chance to move to neighborhoods with lower poverty, lower crime rates and, presumably, more opportunities for employment, good schools and better quality of life. Did they benefit from the moves and did they remain there to continue those benefits? This brief identifies patterns of moving for MTO families and the characteristics of the neighborhoods both from and to which they moved.

Is there a correlation between exposure to racially integrated, low poverty areas and employment outcomes? Does moving from a poor, inner city neighborhood to a less poor area bring greater proximity to job opportunities, or contacts with new networks of neighbors who might steer movers to jobs? Does living in a community where more people work increase motivation to work or to increase income? In examining these questions for the MTO experimental movers, this brief finds that factors in addition to where people live affect their employment and earnings.

According to the federal government, elderly poverty rates among blacks are nearly triple and among Hispanics are more than double those of whites. Data from the 2004 Health and Retirement Study on adults age 65 and older, living alone or with only a spouse, show how assets, which are excluded from the official poverty measure, change elderly poverty overall and between racial/ethnic groups. Adding imputed housing rent and annuitized asset values to resources reduced overall poverty by 1.8 percentage points, but increased racial disparities because blacks and Hispanics have relatively little housing equity or financial assets.

In testimony on the ramifications of inadequate investments in workforce development, Senior Fellow Harry Holzer told a House Appropriations subcommittee that the very low earnings and employment of millions of Americans generate high poverty rates and impose huge costs on the U.S. economy. The research evidence, while somewhat mixed, shows that many public investments in workforce development are cost-effective at raising the earnings of low-income workers.