Poverties

1. Poverties Robert Walker

2. Working assumptions • Poverty does not exist • Low income exists • A consequence of unequal income distribution

3. Income distribution Number of people Low income Income

4. Working assumptions • Poverty does not exist • Low income exists • A consequence of unequal income distribution • Low income in relation to need - hardship exists

5. Income distribution Number of people Low income Income

6. Welfare distribution Number of people Hardship Income to needs Income

7. Need is a relative concept Socially constructed Poverty is a politically constructed Defined arbitrarily Predicates action Poverty does not exist Low income exists A consequence of unequal income distribution Low income in relation to need - hardship exists Working assumptions

8. 30 second summary • Poverty is not inevitable • Poverty is differentiated • Not one poverty but many • Poverty is shaped by time • Begins and ends • Shaped also by space • Poverty is shaped by individual agency • Poverty is experienced by people

9. Poverty is not inevitable

10. Median 1/2 1/2 Setting the poverty threshold Poverty line Number of people Equivalised income Poverty Income to needs Income

11. Income poverty, mid-late 1990s

12. Median 1/2 1/2 Changing the poverty threshold60 per cent of median Poverty line Number of people Equivalised income Poverty Income to needs Income

13. Median 60% 40% Changing the poverty threshold60 per cent of median Poverty line Number of people Equivalised income Poverty Income to needs Income

14. Income poverty (60% median) 2001

15. Reducing income poverty

16. Poverty is differentiated

17. Incidence of poverty Poverty line Number of people Poverty Income to needs Income

18. Poverty line Number of people Poverty Income to needs

19. Poverty line Number of people Poverty Income to needs

20. Severity Income to needs Poverty Poverty line Poverty gap Severity mean Number of people

21. Poverty gaps, selected countries, mid 1990s

22. Poverty is shaped by time

23. Three year measures Incidence of poverty Number of people Annual Cumulative t1 t2 t3 t4 t5

24. Prevalence of poverty, 1990s Source OECD, 2001

25. Income poverty (60% median) 2001

26. Prevalence of poverty types, mid 1990s Long term poverty as percentage of three year ever poor Source: OECD, 2001

27. Types of poverty:Relative risk, UK Source: OECD, 2001

28. Types of poverty:Relative risk, US & UK UK Source: OECD, 2001 USA Poor at least once Always poor Permanent income poor

29. UK USA Italy:Relative risk Italy Source: OECD, 2001 Poor at least once Always poor Permanent income poor

30. Triggers of poverty

31. Types of poverty Persistent Non poor Transient Recurrent Income Poverty threshold Occasional Chronic Permanent Time

32. Childhood poverty in the US: composition of the 38% who suffer poverty Source: Walker with Ashworth, 1994

33. Childhood poverty in the US:composition of currently poor

34. Characteristics of poor US children Transient Occasional Recurrent Persistent Non- white White One parent Chronic Permanent Two parent

35. Poverty is shaped by time • Distribution of poverty across time helps to determine: • The kind of poverty experienced • Transient poverty differs from permanent poverty which differs from repeated spells • The incidence of poverty • Short spells mean higher prevalence • Long spells mean higher concentration

36. Poverty is shaped by time • Distribution of poverty across time helps to determine: • The kind of poverty experienced • Transient poverty differs from permanent poverty which differs from repeated spells • The incidence of poverty • Short spells mean higher prevalence • Long spells mean higher concentration • Structures and institutions affect the: • The incidence and distribution of poverty inducing events • The risk that such events will lead to poverty

37. Poverty is shaped by time • Distribution of poverty across time helps to determine: • the incidence of poverty • Short spells mean higher prevalence • Long spells mean higher concentration • The kind of poverty experienced • Transient poverty differs from permanent poverty which differs from repeated spells • Structures and institutions affect the: • The incidence and distribution of poverty inducing events • The risk that such events will lead to poverty • Individual agency does likewise

38. Poverty is shaped by agency

39. Budgeting Over time Deferring Forgoing Borrowing Managing demand Shop frequently Pander to wants Resist children Minimise risk Coping strategies

40. Budgeting Increase income Get job Sell non-essentials Delay paying bills Work on the side Cash in insurance Pawn valuables Sell essentials Seek charities Petty crime Prostitution Begging +ve £ Social acceptability -ve Coping strategies

41. Poverty is experienced

42. Poverty is experienced as: • Relative Jeff Moore

43. Poverty is experienced as: • Relative • Loss of dignity Gordon Parks

44. Poverty is experienced as: • Relative • Loss of dignity • Being labelled The Guardian

45. Poverty is experienced as: • Relative • Loss of dignity • Being labelled • Doing without Murdo MacLoed

46. Poverty is experienced as: • Relative • Loss of dignity • Being labelled • Doing without • Being stressed Gordon Parks

47. Poverty is experienced as: • Relative • Loss of dignity • Being labelled • Doing without • Being stressed • Being driven to crime The Guardian

48. Conclusions • Poverty is not inevitable • Not one poverty but many • Poverty is shaped by time and space • Poverty is multi-dimensional • Poverty is shaped by agency and experience • Policy must address • Different kinds of poverty • Intervene in people’s trajectories

49. Poverty is multi-dimensional

50. What to take account of Personal Consumption PC PC + SPR Shared Property Rights(Resources) State Provided Commodities PC + SPR + SPC PC + SPC + SPC + Assets PC + SPC + SPC + Assets + Dignity PC+SPC+SPC+Assets+Dignity+Autonomy Source: Baulch (1996)