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Wealth and Poverty: The Effect of Poverty on Communities

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  • Merrick Wang
  • Robert Johnston

Abstract

This paper analyzes the differences in poverty in high wealth communities and low wealth communities. We first discuss methods of measuring poverty and analyze the causes of individual poverty and poverty in the Bay Area. Three cases are considered regarding relative poverty. The first two cases involve neighborhoods in the Bay Area while the third case evaluates two neighborhoods within the city of San Jose, CA. We find that low wealth communities have more crime, more teen births, and more cost-burdened renters because of high concentrations of temporary and seasonal workers, extensive regulations on greenhouse gas emissions, minimum wage laws, and limited housing supply. In the conclusion, we review past attempts to alleviate the effects of poverty and give suggestions on how future policy can be influenced to eventually create a future free of poverty.

Suggested Citation

  • Merrick Wang & Robert Johnston, 2020. "Wealth and Poverty: The Effect of Poverty on Communities," Papers 2010.01335, arXiv.org.
    • Handle: RePEc:arx:papers:2010.01335
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    File URL: http://arxiv.org/pdf/2010.01335
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