poverty in communities of color popular myths and real causes algernon austin
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Poverty in Communities of Color Popular Myths and Real Causes
Algernon Austin
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
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
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
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
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
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
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
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.
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
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
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
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.
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
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
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
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
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
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
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
What Are Good Poverty Reducing Policies for People of Color?