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Culture of Poverty?

Culture of Poverty?. Intergenerational Transmission; Poverty and Place;. What Mechanism for Intergenerational Transmission?. Nature vs nurture Parental investments in human capital Parental time Parental resources as constraint Culture as human capital

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Culture of Poverty?

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  1. Culture of Poverty? Intergenerational Transmission; Poverty and Place;

  2. What Mechanism for Intergenerational Transmission? • Nature vs nurture • Parental investments in human capital • Parental time • Parental resources as constraint • Culture as human capital • Oscar Lewis’ culture of poverty --self sustaining, impervious to real changes in the structure of economic opportunity

  3. Empirical Evidence • Welfare Recipients • The Bell Curve • Studies of Twins • Other evidence

  4. Poverty and Place • Geographic concentration of poverty (Census Maps) • Location theory and income segregation of neighborhoods • William Julius Wilson, The Truly Disadvantaged and When Work Disappears • Jargowsky (1997) , Poverty and Place

  5. Census Maps:factfinder.census.gov

  6. Neighborhood Poverty, 1970 -1990 • Number of high poverty areas more than doubled • Total number of persons living in such areas increased from 4.1 million to 8.0 million • Blacks more concentrated in high poverty areas • Majority of poor do not live in high poverty areas

  7. Why Neighbhorhood Matters? • Provision of local public goods • Suburbanization of jobs and the spatial mismatch hypothesis • Access to job networks and information • Acquisition of social skills • Environmental degradation • Crime as constraint

  8. Characteristics of High Poverty Neighborhoods • Physical Disrepair and high vacancy rates • High Unemployment rates • Low educational attainment • High proportion of families headed by women • Greater reliance on public transportation

  9. Why Do High Poverty Neighborhoods Exist? • The Monocentric city model • Demand for local public goods • Filtering model of housing markets • Educational finance • Zoning restrictions

  10. New Studies • Effects of car ownership on employment • Raphael, Stephen and Stoll, Michael, “Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?” August 2000 • Moving to Opportunity Program • Importance of Experimental Design • Evaluation studies

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