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Poverty in Relation to Macroeconomic Trends, Cycles, and Policies

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Author Info
James Tobin (Cowles Foundation, Yale University)

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Abstract

This survey concludes that general prosperity and economic growth have been considerably less powerful engines of progress against poverty in the U.S. than they were before 1973. Macroeconomic performance has deteriorated, and its relation to poverty has weakened too. It is shown that the incidence of poverty can be fairly well explained by regressions on unemployment rates and real wages, both in national time series and in state cross-sections. Recent downward deviations from these regressions appear to reflect structural labor market changes that make poverty less treatable by macro medicine.

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Publisher Info
Paper provided by Cowles Foundation, Yale University in its series Cowles Foundation Discussion Papers with number 1030R.

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Length: 34 pages
Date of creation: May 1993
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Publication status: Published in Sheldon H. Danziger, Gary D. Sandefur, and Daniel H. Weinberg, eds., Confronting Poverty, Prescription for Change, 1994, pp. 148-167
Handle: RePEc:cwl:cwldpp:1030r

Note: CFP 877.
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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References listed on IDEAS
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  1. David M. Cutler & Lawrence F. Katz, 1991. "Macroeconomic Performance and the Disadvantaged," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1991-2), pages 1-74. [Downloadable!]
  2. Medoff, J.L., 1992. "The New Unemployment," Harvard Institute of Economic Research Working Papers 1620, Harvard - Institute of Economic Research.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Heather Boushey, 2002. "Reworking the Wage Curve: exploring the consistency of the model across time, space and demographic group," Review of Political Economy, Taylor and Francis Journals, vol. 14(3), pages 293-311, July. [Downloadable!] (restricted)
  2. Lin, Zhengxi & Zhengxi, Lin & Zyblock, Miles, 1997. "Trickling Down or Fizzling Out? Economic Performance, Transfers, Inequality and Low Income," Analytical Studies Branch Research Paper Series 1997110e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. R. Haveman & Schwabish J., . "Macroeconomic Performance and the Poverty Rate: A Return to Normalcy?," Institute for Research on Poverty Discussion Papers 1187-99, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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This page was last updated on 2009-12-14.


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