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SWRK 626

SWRK 626. David Rothwell Nov 8 2012 Week 10 Assets. Class warm up. On a piece of paper, respond to the two questions below: 1. What is social capital to you?

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SWRK 626

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  1. SWRK 626 David Rothwell Nov 8 2012 Week 10 Assets

  2. Class warm up On a piece of paper, respond to the two questions below: 1. What is social capital to you? 2. How useful is social capital for intervention to reduce poverty? E.g., would you recommend it for your poverty manifesto? Explain.

  3. Review • What is the function/utility of income?

  4. An exercise Rawlsian veil of ignorance (1971) • “in considering this question, imagine that if you joined this nation, you would be randomly assigned to a place in the distribution, so you could end up anywhere in this distribution, from the very richest to the very poorest” (p. 5, Norton and Ariely, 2011).

  5. Assets, aka wealth • “wealth, also known as net worth, is defined as the total value of everything someone owns minus any debt that he or she owes. A person’s net worth includes his or her bank account savings plus the value of other things such as property, stocks, bonds, art, collections, etc., minus the value of things like loans and mortgages”. (p. 4, Norton and Ariely).

  6. Which of the following nations would you rather join given a Rawlsian constraint? • Choice One • Choice Two

  7. Which of the following nations would you rather join given a Rawlsian constraint? • Choice One • Choice Two

  8. In Canada, how much of the available wealth (100%) does the bottom quintile control? • Less than 1% • 2-3% • 4-5% • 6-8% • 9-10% • 11-12% • More than 12%

  9. In Canada, how much of the available wealth (100%) does the top quintile control? • 20% • 43% • 45-55% • 56-60% • 61-65% • 66-70% • More than 70%

  10. Actual Distributions

  11. What are the actual distributions of wealth?

  12. Real data from Sweden http://www.thefiscaltimes.com/Articles/2011/03/25/Wealth-Debate-How-Two-Economists-Stacked-the-Deck.aspx#page1 http://www.hhs.se/SITE/Publications/Documents/sjoe_WealthConc.pdf

  13. What are the actual distributions of wealth?

  14. Wealth v. income distribution in Canada Inequality by decile 1 : $197 Source: Chawla (2004); http://www.ncw.gc.ca/l.3bd.2t.1ils@-eng.jsp?lid=320

  15. Colonization in Hawai‘i • 231 years of occupation • Denial of culture • Spiritual conversion • Land loss • Language loss • Political sovereignty

  16. Native Hawaiian and Indigenous Peoples • Sacred relationship with earth: ‘āina • Emphasis on harmony and balance: lōkahi • Oral history and traditions • Spirituality: ‘aumakua • Collective norms and family: ‘ohana

  17. Native Hawaiian Well-Being

  18. Individual Development Accounts (IDAs) • Financial education • Duration • Matching mechanism • Cap • Rate and graduation • Over 50,000 IDA account holders in 548 programs nationwide; • Total funding = $225 million (Boshara, 2005).

  19. N

  20. Longitudinal Analysis Research Question: To what extent does IDA graduation affect social development? Indicators of social development • College degree • Business ownership • Net worth

  21. Results: Percent with college degree (46 – 22) 50 46 45 40 35 32 30 (32 - 19) 25 22 Grad 19 20 Non grad 15 10 5 0 Pre Post Treatment impact = (46-22) – (32-19)= 11

  22. Results: Business ownership 30 26 25 22 20 13 15 Grad 12 Non grad 10 5 0 Pre Post Treatment impact = (26-13) - (22-12) = 3

  23. Results: Net worth 250000 194655 200000 150000 Grad 100000 Non grad 74196 50000 13107 6440 0 Pre Post (194655 – 13107) - (74196 – 6440)

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