On the 50th anniversary of President Lyndon B. Johnson's declaration of "unconditional War on Poverty," January 8, 2014, the National Poverty Center at the University of Michigan's Gerald R. Ford School of Public Policy, the Russell Sage Foundation, and Spotlight on Poverty and Opportunity hosted a forum offering diverse perspectives on the effects of anti-poverty policies in the U.S. Click here to learn more about this special event.

Many believe that the War on Poverty, launched by President Johnson in 1964, ended in failure. In 2010, the official poverty rate was 15 percent, almost as high as when the War on Poverty was declared. Historical and contemporary accounts often portray the War on Poverty as a costly experiment that created doubts about the ability of public policies to address complex social problems. Legacies of the War on Poverty, drawing from fifty years of empirical evidence, documents that this popular view is too negative. The volume offers a balanced assessment of the War on Poverty that highlights some remarkable policy successes and promises to shift the national conversation on poverty in America.

Featuring contributions from leading poverty researchers, Legacies of the War on Poverty demonstrates that poverty and racial discrimination would likely have been much greater today if the War on Poverty had not been launched. Chloe Gibbs, Jens Ludwig, and Douglas Miller dispel the notion that the Head Start education program does not work. While its impact on children’s test scores fade, the program contributes to participants’ long-term educational achievement and, importantly, their earnings growth later in life. Elizabeth Cascio and Sarah Reber show that Title I legislation reduced the school funding gap between poorer and richer states and prompted Southern school districts to desegregate, increasing educational opportunity for African Americans.

The volume also examines the significant consequences of income support, housing, and health care programs. Jane Waldfogel shows that without the era’s expansion of food stamps and other nutrition programs, the child poverty rate in 2010 would have been three percentage points higher. Kathleen McGarry examines the policies that contributed to a great success of the War on Poverty: the rapid decline in elderly poverty, which fell from 35 percent in 1959 to below 10 percent in 2010. Barbara Wolfe concludes that Medicaid and Community Health Centers contributed to large reductions in infant mortality and increased life expectancy. Katherine Swartz finds that Medicare and Medicaid increased access to health care among the elderly and reduced the risk that they could not afford care or that obtaining it would bankrupt them and their families.

Legacies of the War on Poverty demonstrates that well-designed government programs can reduce poverty, racial discrimination, and material hardships. This insightful volume refutes pessimism about the effects of social policies and provides new lessons about what more can be done to improve the lives of the poor.

MARTHA J. BAILEY is associate professor in the Department of Economics at the University of Michigan and faculty research fellow at the National Bureau of Economic Research.

SHELDON DANZIGER is the President of the Russell Sage Foundation. He was formerly the Henry J. Meyer Distinguished University Professor of Public Policy and director of the National Poverty Center at the Gerald R. Ford School of Public Policy at University of Michigan.

CONTRIBUTORS: Elizabeth Cascio, Chloe Gibbs, Harry J. Holzer, Bridget Terry Long, Jens Ludwig, Kathleen McGarry, Douglas L. Miller, Edgar O. Olsen,Sarah Heber, Katherine Swartz, Jane Waldfogel, Barbara Wolfe.

A Volume in the National Poverty Center Series on Poverty and Public Policy

The rapid rise in the proportion of foreign-born residents in the United States since the mid-1960s is one of the most important demographic events of the past fifty years. The increase in immigration, especially among the less-skilled and less-educated, has prompted fears that the newcomers may have depressed the wages and employment of the native-born, burdened state and local budgets, and slowed the U.S. economy as a whole. Would the poverty rate be lower in the absence of immigration? How does the undocumented status of an increasing segment of the foreign-born population impact wages in the United States? In Immigration, Poverty and Socioeconomic Inequality, noted labor economists David Card and Steven Raphael and an interdisciplinary team of scholars provide a comprehensive assessment of the costs and benefits of the latest era of immigration to the United States.

Immigration, Poverty, and Socioeconomic Inequality rigorously explores shifts in population trends, labor market competition, and socioeconomic segregation to investigate how the recent rise in immigration affects economic disadvantage in the U.S. Giovanni Peri analyzes the changing skill composition of immigrants to the United States over the past two decades to assess their impact on the labor market outcomes of native-born workers. Despite concerns over labor market competition, he shows that the overall effect has been benign for most native groups. Moreover, immigration appears to have had negligible impacts on native poverty rates. Ethan Lewis examines whether differences in English proficiency explain this lack of competition between immigrant and native-born workers. He finds that parallel Spanish-speaking labor markets emerge in areas where Spanish speakers are sufficiently numerous, thereby limiting the impact of immigration on the wages of native-born residents. While the increase in the number of immigrants may not necessarily hurt the job prospects of native-born workers, low-skilled migration appears to suppress the wages of immigrants themselves. Michael Stoll shows that linguistic isolation and residential crowding in specific metropolitan areas has contributed to high poverty rates among immigrants. Have these economic disadvantages among low-skilled immigrants increased their dependence on the U.S. social safety net? Marianne Bitler and Hilary Hoynes analyze the consequences of welfare reform, which limited eligibility for major cash assistance programs. Their analysis documents sizable declines in program participation for foreign-born families since the 1990s and suggests that the safety net has become less effective in lowering child poverty among immigrant households.

As the debate over immigration reform reemerges on the national agenda, Immigration, Poverty, and Socioeconomic Inequality provides a timely and authoritative review of the immigrant experience in the United States. With its wealth of data and intriguing hypotheses, the volume is an essential addition to the field of immigration studies.

DAVID CARD is Class of 1950 Professor of Economics at the University of California, Berkeley.

STEVEN RAPHAEL is professor of public policy at the Goldman School of Public Policy at the University of California, Berkeley.

CONTRIBUTORS: Marianne P. Bitler, Irene Bloemraad, Sarah Bohn, Chistian Dustmann, Mark Ellis, Cybelle Fox, Tomasso Frattini, Robert G. Gonzales, Hilary W. Hoynes, Christel Kelser, Jennifer Lee,  Ethan Lewis, Magnus Lofstrom, Renee Reichl Luthra, Douglas S. Massey, Giovanni Peri, Michael A. Stoll, Matthew Townley, Roger Waldinger, Richard Wright, Min Zhou.

A Volume in the National Poverty Center Series on Poverty and Public Policy

The United States spends billions of dollars annually on social and economic policies aimed at improving the lives of its citizens, but the health consequences associated with these policies are rarely considered. In Making Americans Healthier, a group of multidisciplinary experts shows how social and economic policies seemingly unrelated to medical well-being have dramatic consequences for the health of the American people.

Most previous research concerning problems with health and healthcare in the United States has focused narrowly on issues of medical care and insurance coverage, but Making Americans Healthier demonstrates the important health consequences that policymakers overlook in traditional cost-benefit evaluations of social policy. The contributors examine six critical policy areas: civil rights, education, income support, employment, welfare, and neighborhood and housing. Among the important findings in this book, David Cutler and Adriana Lleras-Muney document the robust relationship between educational attainment and health, and estimate that the health benefits of education may exceed even the well-documented financial returns of education. Pamela Herd, James House, and Robert Schoeni discover notable health benefits associated with the Supplemental Security Income Program, which provides financial support for elderly and disabled Americans. George Kaplan, Nalini Ranjit, and Sarah Burgard document a large and unanticipated improvement in the health of African-American women following the enactment of civil rights legislation in the 1960s.

Making Americans Healthier presents ground-breaking evidence that the health impact of many social policies is substantial. The important findings in this book pave the way for promising new avenues for intervention and convincingly demonstrate that ultimately social and economic policy is health policy.
 

ROBERT F. SCHOENI is professor of public policy and economics, the University of Michigan.

JAMES S. HOUSE is Angus Campbell Collegiate Professor of Sociology and Survey Research, the University of Michigan.

GEORGE A. KAPLAN is the Thomas Francis Collegiate Professor of Public Health, the University of Michigan.

HAROLD POLLACK is associate professor of social service administration, University of Chicago.

CONTRIBUTORS: Marianne P. Bitler, Jeanne Brooks-Gunn, Sarah A. Burgard, Janet Currie, David M. Cutler, Rebecca C. Fauth, Irv Garfinkel. Ben B. Hansen, Pamela Herd, Hilary Hoynes, Daniel Keating, Jean Knab, Adriana Lleras-Muney, Sara McLanahan, Jeffrey D. Morenoff, Enrico Moretti, Theresa L. Osypuk, Richard H. Price,  Nalini Ranjit, Ana V. Diez Roux, Christopher J. Ruhm, Sharon Z. Simonton.

A Volume in the National Poverty Center Series on Poverty and Public Policy

Given the increasing diversity of the nation—particularly with respect to its growing Hispanic and Asian populations—why does racial and ethnic difference so often lead to disadvantage? In The Colors of Poverty, a multidisciplinary group of experts provides a breakthrough analysis of the complex mechanisms that connect poverty and race.

The Colors of Poverty reframes the debate over the causes of minority poverty by emphasizing the cumulative effects of disadvantage in perpetuating poverty across generations. The contributors consider a kaleidoscope of factors that contribute to widening racial gaps, including education, racial discrimination, social capital, immigration, and incarceration. Michèle Lamont and Mario Small grapple with the theoretical ambiguities of existing cultural explanations for poverty disparities.  They argue that culture and structure are not competing explanations for poverty, but rather collaborate to produce disparities. Looking at how attitudes and beliefs exacerbate racial stratification, social psychologist Heather Bullock links the rise of inequality in the United States to an increase in public tolerance for disparity. She suggests that the American ethos of rugged individualism and meritocracy erodes support for antipoverty programs and reinforces the belief that people are responsible for their own poverty. Sociologists Darren Wheelock and Christopher Uggen focus on the collateral consequences of incarceration in exacerbating racial disparities and are the first to propose a link between legislation that blocks former drug felons from obtaining federal aid for higher education and the black/white educational attainment gap. Joe Soss and Sanford Schram argue that the increasingly decentralized and discretionary nature of state welfare programs allows for different treatment of racial groups, even when such policies are touted as “race-neutral.” They find that states with more blacks and Hispanics on welfare rolls are consistently more likely to impose lifetime limits, caps on benefits for mothers with children, and stricter sanctions.

The Colors of Poverty is a comprehensive and evocative introduction to the dynamics of race and inequality. The research in this landmark volume moves scholarship on inequality beyond a simple black-white paradigm, beyond the search for a single cause of poverty, and beyond the promise of one “magic bullet” solution.

ANN CHIH LIN is associate professor in the Gerald R. Ford School of Public Policy and Department of Political Science at the University of Michigan.

DAVID R. HARRIS is professor of sociology and deputy provost at Cornell University.

CONTRIBUTORS: Scott W. Allard, Heather E. Bullock, George Farkas, David R. Harris, Michèle Lamont, Ann Chih Lin, Selina A. Mohammed, Devah Pager, Lincoln Quillian, Rozlyn Reed, Sanford F. Schram, Mario Luis Small, Joe Soss, Michael A. Stoll, Christopher Uggen, Darren Wheelock, and David R. Williams

A Volume in the National Poverty Center Series on Poverty and Public Policy

Over the last three decades, large-scale economic developments, such as technological change, the decline in unionization, and changing skill requirements, have exacted their biggest toll on low-wage workers. These workers often possess few marketable skills and few resources with which to support themselves during periods of economic transition. In Working and Poor, a distinguished group of economists and policy experts, headlined by editors Rebecca Blank, Sheldon Danziger, and Robert Schoeni, examine how economic and policy changes over the last twenty-five years have affected the well-being of low-wage workers and their families.

Working and Poor examines every facet of the economic well-being of less-skilled workers, from employment and earnings opportunities to consumption behavior and social assistance policies. Rebecca Blank and Heidi Schierholz document the different trends in work and wages among less-skilled women and men. Between 1979 and 2003, labor force participation rose rapidly for these women, along with more modest increases in wages, while among the men both employment and wages fell. David Card and John DiNardo review the evidence on how technological changes have affected less-skilled workers and conclude that the effect has been smaller than many observers claim. Philip Levine examines the effectiveness of the Unemployment Insurance program during recessions. He finds that the program’s eligibility rules, which deny benefits to workers who have not met minimum earnings requirements, exclude the very people who require help most and should be adjusted to provide for those with the highest need.  On the other hand, Therese J. McGuire and David F. Merriman show that government help remains a valuable source of support during economic downturns.  They find that during the most recent recession in 2001, when state budgets were stretched thin, legislatures resisted political pressure to cut spending for the poor.

Working and Poor provides a valuable analysis of the role that public policy changes can play in improving the plight of the working poor. A comprehensive analysis of trends over the last twenty-five years, this book provides an invaluable reference for the public discussion of work and poverty in America.

REBECCA M. BLANK is codirector of the National Poverty Center and dean of the Gerald R. Ford School of Public Policy, Henry Carter Adams Collegiate Professor of Public Policy, and professor of economics at the University of Michigan.

SHELDON H. DANZIGER is Henry J. Meyer Distinguished University Professor of Public Policy and codirector of the National Poverty Center at the Gerald R. Ford School of Public Policy at the University of Michigan.

ROBERT F. SCHOENI is research associate professor at the Institute for Social Research, associate professor of Economics and Public Policy, at the University of Michigan.

CONTRIBUTORS: David Autor, George J. Borjas, Maria Cancian, David Card, Kerwin Kofi Charles, John DiNardo, Robert W. Fairlie, Eric French, Steven J. Haider, Robert E. Hall, Kevin A. Hassett, Susan Houseman, Phillip B. Levine,  Helen Levy, Rebecca A. London, Bhashkar Mazumder, Kathleen McGarry, Therese J. McGuire, David F. Merriman, Daniel R. Meyer,  Anne Moore, Heidi Shierholz,  Melvin Stephens Jr., Christopher Taber.

A Volume in the National Poverty Center Series on Poverty and Public Policy
 

One in four American adults doesn’t have a bank account. Low-income families lack access to many of the basic financial services middle-class families take for granted and are particularly susceptible to financial emergencies, unemployment, loss of a home, and uninsured medical problems. Insufficient Funds explores how institutional constraints and individual decisions combine to produce this striking disparity and recommends policies to help alleviate the problem.

Mainstream financial services are both less available and more expensive for low-income households. High fees, minimum-balance policies, and the relative scarcity of banks in poor neighborhoods are key factors. Michael Barr reports the results of an in-depth study of financial behavior in 1,000 low- and moderate-income families in metropolitan Detroit. He finds that most poor households have bank accounts, but combine use of mainstream services with alternative options such as money orders, pawnshops, and payday lenders. Barr suggests that a tax credit for banks serving primarily disadvantaged customers could facilitate greater equality in the private financial sector.

Drawing on evidence from behavioral economics, Sendhil Mullainathan and Eldar Shafir show that low-income individuals exhibit many of the same patterns and weaknesses in financial decision making as middle-class individuals and could benefit from many of the same financial aids. They argue that savings programs that automatically enroll participants and require them to actively opt out in order to leave the program could drastically increase savings ability. Ronald Mann demonstrates that significant changes in the credit market over the past fifteen years have allowed companies to expand credit to a larger share of low-income families. Mann calls for regulations on credit card companies that would require greater disclosure of actual interest rates and fees. Raphael Bostic and Kwan Lee find that while home ownership has risen dramatically over the past twenty years, elevated risks for low-income families—such as foreclosure—may well outweigh the benefits of owning a home.

The authors ultimately argue that if we want to demand financial responsibility from low-income households, we have an obligation to assure that these families have access to the banking, credit, and savings institutions that are readily available to higher-income families. Insufficient Funds highlights where and how access is blocked and shows how government policy and individual decisions could combine to eliminate many of these barriers in the future.

REBECCA M. BLANK is the Robert S. Kerr Senior Fellow at the Brookings Institution.

MICHAEL S. BARR is professor of law at the University of Michigan Law School.

CONTRIBUTORS: Raphael W. Bostic, Daryl Collins, Kwan Ok Lee, Ronald J. Mann, Jonathan Morduch, Sendhil Mullainathan, Una Okonkwo Osili, Anna L. Paulson, Daniel Schneider, John Karl Scholz, Ananth Seshadri, Eldar Shafir, Michael Sherraden, Peter Tufano.

A Volume in the National Poverty Center Series on Poverty and Public Policy