U.S. households face a number of economic challenges that affect their well-being. In this analysis we focus on the extent to which neighborhood economic conditions contribute to hardship. Specifically, using data from the 2008 and 2014 Survey of Income and Program Participation panel surveys and logistic regression, we analyze the extent to which neighborhoods income levels affect the likelihood of experiencing seven types of hardships, including trouble paying bills, medical need, food insecurity, housing hardship, ownership of basic consumer durables, neighborhood problems, and fear of crime. We find strong bivariate relationships between neighborhood income and all hardships, but for most hardships these are explained by other household characteristics, such as household income and education. However, neighborhood income retains a strong association with two hardships in particular even when controlling for a variety of other household characteristics: neighborhood conditions (such as the presence of trash and litter) and fear of crime. Our study highlights the importance of examining multiple measures when assessing well-being, and our findings are consistent with the notion that collective socialization and community-level structural features affect the likelihood that households experience deleterious neighborhood conditions and a fear of crime.
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Income Packaging and Economic Disconnection: Do Sources of Support Differ from Other Low-Income Women?
December 2013
Working Paper Number:
CES-13-61
Income packaging, or piecing together cash and non-cash resources from a variety of sources, is a common financial survival strategy among low-income women. This strategy is particularly important for economically disconnected women, who lack both employment income and public cash assistance receipt. Using data from the confidential Census Bureau versions of the Survey of Income and Program Participation, this study compares the use of public and private supports between disconnected and connected low-income women, controlling for differences in state welfare rules and county unemployment rates. Findings from bivariate comparisons and multilevel logistic regressions indicate that disconnected women utilize public non-cash supports at similar rates to connected women, but rely more heavily on private sources. Conclusions focus on the policy implications for outreach and program development.
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Parental Earnings and Children's Well-Being and Future Success: An Analysis of the SIPP Matched to SSA Earnings Data
April 2011
Working Paper Number:
CES-11-12
We estimate the association between parental earnings and a wide variety of indicators of child well-being using data from the Survey of Income and Program Participation (SIPP) matched to administrative earnings records from the Social Security Administration. We find that the use of longer time averages of parent earnings leads to substantially higher estimated effects compared to using only a single year of parent earnings. This suggests that previous studies may have understated the potential efficacy of income support programs to improve child well-being. Further, policy makers should take into account the attenuation bias when comparing studies that use different time spans to measure parental income. Using 7 year time averages of parent earnings, we show for example, that a doubling of parent earnings reduces the probability of a teenager reporting being in poor health by close to 50 percent and a child having insufficient food by 75 percent.
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Whose Neighborhood Now? Gentrification and Community Life in Low-Income Urban Neighborhoods
June 2024
Working Paper Number:
CES-24-29
Gentrification is a process of urban change that has wide-ranging social and political impacts, but previous studies provide divergent findings. Does gentrification leave residents feeling alienated, or does it bolster neighborhood social satisfaction? Politically, does urban change mobilize residents, or leave them disengaged? I assess a national, cross-sectional sample of about 17,500 respondents in lower-income urban neighborhoods, and use a structural equation modeling approach to model six latent variables pertaining to local social environment and political participation. Amongst the full sample, gentrification has a positive association with all six factors. However, this relationship depends upon respondents' level of income, length of residency, and racial identity. White residents and those with shorter length of residency report higher levels of social cohesion as gentrification increases, but there is no such association amongst racial minority groups and longer-term residents. This finding aligns with a perspective on gentrification as a racialized process, and demonstrates that gentrification-related amenities primarily serve the interests of white residents and newcomers. All groups, however, are more likely to participate in neighborhood politics as gentrification increases, drawing attention to the agency of local residents as they attempt to influence processes of urban change.
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Changes in Neighborhood Inequality, 2000-2010
March 2016
Working Paper Number:
CES-16-18
Recent work has suggested that higher income inequality may be a desirable attribute of a neighborhood in that it represents diversity, even though high (and rising) inequality appears to be detrimental to the nation as a whole. The research reported here has determined the key characteristics of a census tract that are associated with the level of inequality in 2000 or 2010, and those associated with changes in income inequality between 2000 and 2010. For the change, the strongest influence is a negative effect for the level of income inequality in 2000; that is, higher income inequality in 2000 leads to a decline over the decade, ceteris paribus. Neighborhoods with higher proportions or levels of the following population and housing characteristics tend to have both higher income inequality and a larger increase in income inequality between 2000 and 2010: individuals in poverty, those with a bachelor's degree, older individuals, householders living alone, and median rent, and lower median housing value and household income. Among these, perhaps the most important determinant is the percent in poverty in 2000. Furthermore, as the baseline level of demographic and economic diversity increases, the better the baseline and change characteristics explain the change in the Gini index from 2000 to 2010.
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Capturing More Than Poverty: School Free and Reduced-Price Lunch Data and Household Income
December 2017
Working Paper Number:
carra-2017-09
Educational researchers often use National School Lunch Program (NSLP) data as a proxy for student poverty. Under NSLP policy, students whose household income is less than 130 percent of the poverty line qualify for free lunch and students whose household income is between 130 percent and 185 percent of the poverty line qualify for reduced-price lunch. Linking school administrative records for all 8th graders in a California public school district to household-level IRS income tax data, we examine how well NSLP data capture student disadvantage. We find both that there is substantial disadvantage in household income not captured by NSLP category data, and that NSLP categories capture disadvantage on test scores above and beyond household income.
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Has Falling Crime Invited Gentrification?
January 2017
Working Paper Number:
CES-17-27
Over the past two decades, crime has fallen dramatically in cities in the United States. We explore whether, in the face of falling central city crime rates, households with more resources and options were more likely to move into central cities overall and more particularly into low income and/or majority minority central city neighborhoods. We use confidential, geocoded versions of the 1990 and 2000 Decennial Census and the 2010, 2011, and 2012 American Community Survey to track moves to different neighborhoods in 244 Core Based Statistical Areas (CBSAs) and their largest central cities. Our dataset includes over four million household moves across the three time periods. We focus on three household types typically considered gentrifiers: high-income, college-educated, and white households. We find that declines in city crime are associated with increases in the probability that highincome and college-educated households choose to move into central city neighborhoods, including low-income and majority minority central city neighborhoods. Moreover, we find little evidence that households with lower incomes and without college degrees are more likely to move to cities when violent crime falls. These results hold during the 1990s as well as the 2000s and for the 100 largest metropolitan areas, where crime declines were greatest. There is weaker evidence that white households are disproportionately drawn to cities as crime falls in the 100 largest metropolitan areas from 2000 to 2010.
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Who Gentrifies Low Income Neighborhoods?
January 2008
Working Paper Number:
CES-08-02
This paper uses confidential Census data, specifically the 1990 and 2000 Census Long- Form data, to study the demographic processes underlying the gentrification of low income urban neighborhoods during the 1990's. In contrast to previous studies, the analysis is conducted at the more refined census-tract level with a narrower definition of gentrification and more narrowly defined comparison neighborhoods. The analysis is also richly disaggregated by demographic characteristic, uncovering differential patterns by race, education, age and family structure that would not have emerged in the more aggregate analysis in previous studies. The results provide little evidence of displacement of low-income non-white households in gentrifying neighborhoods. The bulk of the income gains in gentrifying neighborhoods are attributed to white college graduates and black high school graduates. It is the disproportionate in-migration of the former and the disproportionate retention and income gains of the latter that appear to be the main engines of gentrification.
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Spillovers From Costly Credit
March 2013
Working Paper Number:
CES-13-11
Recent research on the effects of credit access among low- and moderate-income households finds that high-cost payday loans exacerbate, rather than alleviate, financial distress for a subset of borrowers (Melzer 2011; Skiba and Tobacman 2011). In this study I find that others, outside the borrowing household, bear a portion of these costs too: households with payday loan access are 20% more likely to use food assistance benefits and 10% less likely to make child support payments required of non-resident parents. These findings suggest that as borrowers accommodate interest and principal payments on payday loan debt, they prioritize loan payments over other liabilities like child support payments and they turn to transfer programs like food stamps to supplement the household's resources. To establish this finding, the analysis uses a measure of payday loan access that is robust to the concern that lender location decisions and state policies governing payday lending are endogenous relative to household financial condition. The analysis also confirms that the effect is absent in the mid-1990s, prior to the spread of payday lending, and that the effect grows over time, in parallel with the growth of payday lending.
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The Relationship of Personal and Neighborhood Characteristics to Immigrant Fertility
August 2002
Working Paper Number:
CES-02-20
We find that fertility varies by immigrant generation, with significant declines between the first and subsequent generations for groups with large immigrant population. However, we find that personal characteristics--such as educational attainment, marital status, and income levels--are much more important than immigrant generation in understanding fertility outcomes. In fact, generations are not independently important once these personal characteristics are controlled for. We maintain that declining fertility levels among the descendants of Mexican and Central American immigrants are primarily the result of higher educational attainment levels, lower rates of marriage, and lower poverty. For example, a four-year increase in educational attainment decreases children ever born (CEB) by half a child. We conclude that immigrant generation serves as a proxy for changes in other personal characteristics that decrease fertility. Neighborhood characteristics have some bearing on fertility, but the correlations are relatively weak. Among Mexican and Central American immigrants and their descendants, the most consistent predictor of children ever born (CEB) at the neighborhood level is the percentage of Hispanic adults. However, no neighborhood characteristics bear any statistical relationship to current fertility, the measure that emphasizes recent births. This pattern of evidence suggests that the observed relationships between neighborhood characteristics and fertility are based on selection into the neighborhood rather than on neighborhood influences as such.
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School Discipline and Racial Disparities in Early Adulthood
June 2021
Working Paper Number:
CES-21-14
Despite interest in the role of school discipline in the creation of racial inequality, previous research has been unable to identify how students who receive suspensions in school differ from unsuspended classmates on key young adult outcomes. We utilize novel data to document the links between high school discipline and important young adult outcomes related to criminal justice contact, social safety net program participation, post-secondary education, and the labor market. We show that the link between school discipline and young adult outcomes tends to be stronger for Black students than for White students, and that inequality in exposure to school discipline accounts for approximately 30 percent of the Black-White disparities in young adult criminal justice outcomes and SNAP receipt.
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