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Has Macroeconomic Performance Regained Its Antipoverty Bite?

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  • R HAVEMAN
  • J SCHWABISH

Abstract

From the mid-1980s to the early 1990s, several important studies examined the statistical relationship between the U.S. official poverty rate and overall economic performance. Most of these studies focused on the apparent break in this relationship beginning in the late 1970s or early 1980s. In this article, we present the results of our study of the relationship between macroeconomic performance and the poverty rate, using annual time-series data on macroeconomic variables, such as the unemployment rate and per-capita GDP growth from 1959 through 1998. Like these earlier studies, we also find that economic performance had a smaller antipoverty effect during the 1970s and 1980s than it did in earlier years. However, our estimates suggest that the weakened economic growth-poverty relationship may have been an aberration of this period and that the expected relationship of the 1960s has again been reestablished in the 1990s. This is true even after accounting for changes in earnings inequality over the entire period. Copyright 2000 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 18 (2000)
Issue (Month): 4 (October)
Pages: 415-427

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Handle: RePEc:bla:coecpo:v:18:y:2000:i:4:p:415-427

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Cited by:
  1. Carlos Gradin & Olga Canto & Coral del Rio, 2012. "Measuring employment deprivation among households in the EU," Working Papers 247, ECINEQ, Society for the Study of Economic Inequality.
  2. Berthold, Norbert & Brunner, Alexander & Zenzen, Jupp, 2010. "Makroökonomische Rahmenbedingungen und die Einkommensverteilung: Welchen Einfluss hat die Finanzkrise?," Wirtschaftswissenschaftliche Beiträge 108, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  3. Luis Ayala & Olga Cantó & Juan G. Rodríguez, 2011. "Poverty and the business cycle: The role of the intra-household distribution of unemployment," Working Papers 222, ECINEQ, Society for the Study of Economic Inequality.
  4. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia.
  5. Natasha V. Pilkauskas & Janet Currie & Irwin Garfinkel, 2011. "The Great Recession and Material Hardship," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing. 1312, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
  6. Steven Shulman, 2001. "Family structure and the afro-euro poverty gap: When employment policies aren't enough," The Review of Black Political Economy, Springer, Springer, vol. 29(2), pages 47-66, December.

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