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Whether the economy can successfully create enough jobs for welfare workers is yet to be seen. The existence of discriminatory practices, particularly in labor markets, compounds the problems of poverty. The groups with the highest rates of poverty, black families and those headed by a female, are also groups that are susceptible to being victims of discrimination. This chapter provides knowledge of poverty and discrimination. | Chapter 7 Poverty and Discrimination: Why Are So Many Still Poor? Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 7- Poverty 7- What Is Poverty? 7- Criticisms of How Poverty Is Measured Omission of in-kind benefits Food budget multiplier Regional differences in the cost of living 7- Who Are the Poor? Temporary versus Hardcore poverty Family Structure Age Race and Ethnicity Regional differences Clicking on each underlined term jumps to a slide containing data on the characteristic. (These slides are known as Custom Shows) Clicking on Race and Ethnicity jumps to two slides. The first is poverty rate by race and ethnicity. The second is poverty rate by family type and race and ethnicity (Table 7.2). After viewing the data, a click jumps back to this slide. 7- Household Income Inequality - 2007 Households Share of Income Income Limit Mean Income Lowest Fifth 3.4% $11,551 Second Fifth 8.7% $20,291 $29,442 Third Fifth 14.8% $39,100 $49,968 Fourth Fifth 23.4% $62,000 $79,111 Highest Fifth 49.7% $100,000 $167,971 Median $50,233 Mean $67,609 Source: U.S. Bureau of the Census 7- Trends in Household Income Inequality Share of Household Income by Quintile Households 1970 1980 1990 2000 2007 Lowest Fifth 4.1 4.2 3.8 3.6 3.4 Second Fifth 10.8 10.2 9.6 8.7 8.7 Third Fifth 17.4 16.8 15.9 14.6 14.8 Fourth Fifth 24.5 24.6 24.0 23.0 23.4 Highest Fifth 43.3 44.2 46.6 49.8 49.7 7- Economic Causes of the Increase in Inequality Decline in well-paying manufacturing jobs Decline in unionization rates Decline in real value of the minimum wage Tax cuts 7- Determinants of Resource Prices and Employment Labor–person-hours D D S S w0 w1 w2 q0 q1 q2 Capital Rental rate D D S S r0 K0 Rate 7- Determination of Individual or Family Income Income = w * L + r * K 7- Determinants of Income Distribution Income Differences due to Differences in Labor Resources and Their Use Differences | Chapter 7 Poverty and Discrimination: Why Are So Many Still Poor? Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 7- Poverty 7- What Is Poverty? 7- Criticisms of How Poverty Is Measured Omission of in-kind benefits Food budget multiplier Regional differences in the cost of living 7- Who Are the Poor? Temporary versus Hardcore poverty Family Structure Age Race and Ethnicity Regional differences Clicking on each underlined term jumps to a slide containing data on the characteristic. (These slides are known as Custom Shows) Clicking on Race and Ethnicity jumps to two slides. The first is poverty rate by race and ethnicity. The second is poverty rate by family type and race and ethnicity (Table 7.2). After viewing the data, a click jumps back to this slide. 7- Household Income Inequality - 2007 Households Share of Income Income Limit Mean Income Lowest Fifth 3.4% $11,551 Second Fifth 8.7% $20,291 $29,442 Third
