TAILIEUCHUNG - The Causes of Inner-City Poverty: Eight Hypotheses in Search of Reality

How shall we assess the structural change hypothesis as the basis for inner-city urban poverty? It certainly seems plausible. One has only to walk the former industrial district of any large, older city, from New York to San Francisco, to see its physical manifesta- tions. Yet some nagging problems remain. Although many working people may be suffer- ing under the new regime, why are some groups so much more affected than others? Why are some cities relatively worse off than others? Why does the market not see opportuni- ties in the tragic waste of human resources that is mass unemployment? Why has society not taken effective measures. | The Causes of Inner-City Poverty Eight Hypotheses in Search of Reality The Causes of Inner-City Poverty Eight Hypotheses in Search of Reality Michael B. Teitz Public Policy Institute of California and University of California Berkeley Karen Chapple University of California Berkeley Abstract Over the past 40years poverty among the inhabitants of . inner cities has remained stubbornly resistant to public policy prescriptions. Especially for African Americans and Latinos the gap between their economic well-being and that of the mainstream has widened despite persistent and repeated efforts to address the problem. At the same time a continuing stream of research has sought to explain urban poverty with a wide variety of explanations put forward as the basis for policy. This paper reviews that research organizing it according to eight major explanations or hypotheses structural shifts in the economy inadequate human capital racial and gender discrimination adverse cultural and behavioral factors racial and income segregation impacts of migration lack of endogenous growth and adverse consequences ofpublic policy. We conclude that all of the explanations may be relevant to urban poverty but that their significance and the degree to which they are well supported varies substantially. It is now more than 12 years since the publication of William J. Wilson and Robert Aponte s 1985 survey of urban poverty in the United States. That report still stands alone as an effort to produce a state of the art review of research and theoretical writing on urban poverty Wilson and Aponte 1985 . However in the intervening years there has been much work on and even more debate about the nature and causes of poverty in . inner cities. Much of the contribution indeed may be attributed to Wilson who has sparked a new round of work in the field. At the same time there has been a wave of interest in reform that is intended to respond to the seemingly intractable nature of urban poverty. .

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