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Recent Trends in Resource Sharing Among the Poor

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  • Steven J. Haider
  • Kathleen McGarry

Abstract

Motivated in part by the dramatic changes in the United States economy and public assistance policies, many researchers have examined the changes in the resources of the low-income population over the last two decades, with particular attention paid to income from earnings and public assistance programs. One source of income that has received comparatively little attention is income from private transfers. However, private transfers may be a key source of support for low-income individuals, especially for those who have had little attachment to the labor force or who have experienced reductions in public assistance. In this paper, we provide a conceptual discussion of private transfers drawing on several related literatures and provide new empirical evidence regarding the significance of private of transfers as a source income. We find that private transfers are an important source of income for many less-skilled households, the contribution of private transfers to total income has increased over time, and shared living arrangements are a common mechanism for providing assistance.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11612.

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Date of creation: Sep 2005
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Handle: RePEc:nbr:nberwo:11612

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Cited by:
  1. Nuno Martins & Ernesto Villanueva, 2006. "Does limited access to mortgage debt explain why young adults live with their parents?," Banco de Espa�a Working Papers 0628, Banco de Espa�a.
  2. Bruce Meyer & James X. Sullivan, 2010. "Five Decades of Consumption and Income Proverty," Working Papers 2010-003, Becker Friedman Institute for Research In Economics.
  3. Helen Levy & Kristin Seefeldt, 2008. "Saving among Low-Income Women: Motivation and Obstacles," Working Papers wp199, University of Michigan, Michigan Retirement Research Center.
  4. Mario García-Ferreira & Ernesto Villanueva, 2007. "Employment risk and household formation: evidence from differences in firing costs," Banco de Espa�a Working Papers 0737, Banco de Espa�a.

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