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The Importance of Economic Security to Today’s Children

The Importance of Economic Security to Today’s Children . Presented by Gregory Acs The Urban Institute. At. Annie E. Casey Foundation/UMBC/MIPAR Public Policy Forum Baltimore, MD. October 31, 2012. Child Poverty in Context (1). 21.9% of children (16.1 million) were poor in 2011.

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The Importance of Economic Security to Today’s Children

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  1. The Importance of Economic Security to Today’s Children Presented by Gregory Acs The Urban Institute At Annie E. Casey Foundation/UMBC/MIPAR Public Policy Forum Baltimore, MD October 31, 2012

  2. Child Poverty in Context (1) • 21.9% of children (16.1 million) were poor in 2011. • Overall poverty: 15.0% • One-quarter of children under age 6 are poor.

  3. Child Poverty in Context (2) YearChild Poverty (%) • 21.9 • 18.0 • 16.2 • 20.6 Peak since 1980 was 22.7% in 1993.

  4. Child Poverty in Context (3) Child poverty rates by race/ethnicity: • White, non-Hispanic: 12.5% • Black, non-Hispanic: 38.8% • Hispanic (any race): 34.1% (all for 2011)

  5. Poverty affect children’s… • Cognitive and schooling outcomes • Behavior • Adult economic status

  6. How does poverty affect children, and what can we do about it? • Time and timing matter • Social safety net works for some

  7. Time and timing matter (Duncan & Brooks-Gunn 1997) • Poverty in early childhood is more strongly correlated with worse cognitive and later life economic outcomes than poverty in later childhood and adolescence. • Persistent poverty has stronger effects than intermittent/occasional poverty. • Effects of poverty, low-income status on children mediated in part through “stress” and home environment.

  8. Time and timing matter (Ratcliffe& McKernan 2012) For children born 1982-1987— • 19% were born into poverty • 47% of those born poor, were persistently poor (poor for at least 9 out of 18 years) • Only 4% of those not born poor were persistently poor.

  9. Adult Outcomes and Child Poverty (Ratcliffe& McKernan 2012) PAB Not PAB Never Poor No HS Deg. 24% 7% 3% Teen Birth 21% 7% 2% (PAB=Poor at Birth)

  10. The social safety net: • Unemployment Insurance—many of the most vulnerable not covered. • TANF—caseloads lagged recession, didn’t rise that much. • Medicaid/CHIP—responding but under strain. • SNAP (food stamps)—responding well. • EITC—if counted, would lift 3 million kids out of poverty but timing is an issue.

  11. What should we do? • Don’t abandon the work-based safety net but build in adaption for periods/regions of high unemployment. • Encourage responsible childbearing decisions. • Early interventions likely have the highest payoffs, but don’t abandon poor older children and teens as hopeless.

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