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Poverty in Communities of Color Popular Myths and Real Causes
Algernon Austin
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Myth: Asian Americans Have a Lower Poverty Rate than Whites
Median Family Income, 2007
$77,133$69,937
$40,566 $40,143
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Asian White Hispanic Black
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Family Poverty Rates, 2007
5.9
19.7
22.1
7.9
0.0
5.0
10.0
15.0
20.0
25.0
White Hispanic Black Asian
Perc
ent
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Different Common Poverty Rates
• All individuals• All families• All families with children under 18• Of a racial group alone• Of a racial group with all other races
included• CPS, ACS• 50% of median family income
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Asian-American Poverty Rates, 2006, Part I
5.1
7.3 7.3
8.5
10.7 11.0 11.0
0
2
4
6
8
10
12
Filipino Japanese AsianIndian
White Korean Thai Chinese
Perc
ent
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Asian-American Poverty Rates, 2006, Part II
8.5
12.213.3 13.4
20.3
23.424.7
26.3
0
5
10
15
20
25
30
White
Vietnam
ese
Pakist
ani
Laotia
n
Cambodian
Black
Banglad
eshi
Hmong
Perc
ent
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Median Annual Income for Full Time, Year Round Workers, 2007
41,933
51,591
70,418
30,387
39,808
48,987
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
High School Graduate Associate's Bachelor's
Dol
lars
Male Asian Male White Female Asian Female White
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Asian and Pacific Islander Family Poverty Rates, 2000 and 2007
10.1% 10.2%10.0%
10.3%
9.3%
10.9%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
All U.S.-born Foreign-born
2000 2007
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Hidden Asian-American Poverty
• Many Asian-American groups have relatively high family incomes and they also have relatively high poverty rates.
• Most Asian-American groups actually have higher poverty rates than non-Hispanic whites.
• The poverty rate for foreign-born Asian and Pacific Islander American families has increased recently.
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Myth: Female Single-Parent Families are the Main Cause of Black Poverty
Distribution of Households by Type, 2004
53.5
8.93.5
34.1
49.6
18.8
8.8
22.828.8 30.4
5.6
35.2
0
10
20
30
40
50
60
Married Couple Female, NoHusband
Male, No Wife
Family Households Non-Family
Perc
ent
White Hispanic Black
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Poverty Rates for Single-Parent Families with Children, 2007
46.643.9
29.2
22.0
30.0
13.2
0.0
10.0
20.0
30.0
40.0
50.0
Hispanic Black White Hispanic Black White
Female Male
Perc
ent
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Median Annual Income of Full Time, Year Round Workers, 2007
33,746 35,068
39,808
34,384
41,933
51,591
0
10,000
20,000
30,000
40,000
50,000
60,000
9th to 12th Grade, nodiploma
High School Graduate Associate's Degree
Dol
lars
Hispanic Female Black Female White Female White Male
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Income Inequality and Poverty
• Family structure changes have become a less important factor in the national poverty rate over time.
• If we had less income inequality we would have much less poverty.
• If Hispanic and black female single parents earned as much as white men with similar levels of education they would have much lower poverty rates.
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Myth: Education is All That is Necessary for Eliminating Hispanic
PovertyPercent of Adults with High School Diploma
or Equivalent, 1985-2007
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Perc
ent
Hispanic
Black
White
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Percent of Adults with High School Diploma or Equivalent, 2007
23.5
76.6
50.3 49.7
10.6
89.5
19.7
80.2
0
10
20
30
40
50
60
70
80
90
100
less than H.S. diploma H.S. diploma
Perc
ent
U.S.-born Hispanic Foreign-born Hispanic White Black
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Percent of Hispanic Adults by Nativity, 2007
40.7
59.3
0
10
20
30
40
50
60
70
U.S.-born Foreign-born
Perc
ent
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Hispanic Family Poverty Rates by Nativity, 2000 and 2007
18.920.2
16.8
22.4
0
5
10
15
20
25
U.S.-born Foreign-born
Perc
ent
2000 2007 2000 2007
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Median Annual Income of Full Time, Year Round Male Workers, 2007
34,384
41,933
51,591
0
10,000
20,000
30,000
40,000
50,000
60,000
9th to 12th Grade, nodiploma
High School Graduate Associate's Degree
Dol
lars
Hispanic Black White
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Education is Necessary But Not Enough
• It is very important that we increase the educational attainment of Hispanics and blacks.
• Hispanics, blacks and Asians often earn less than whites at the same education level.
• It is likely that many foreign-born Hispanic and Asian adults will not be able to increase their educational level. – These groups require non-educational poverty
reducing policies
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Child Poverty Rates Before and After Taxes and Transfers, 2000
(Poverty <= 50% of median family income)
26.6
21.9
27.9
16.3
27.7
7.5
25.4
15.4
0
5
10
15
20
25
30
35
Before After
Perc
ent
United States New Zealand France United Kingdom
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What Are Good Poverty Reducing Policies for People of Color?