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The relationship between income and material hardship

Author

Listed:
  • James X. Sullivan

    (University of Notre Dame)

  • Lesley Turner

    (Columbia University)

  • Sheldon Danziger

    (National Poverty Center, University of Michigan)

Abstract

This paper examines the relationship between income and the extent of material hardship and explores other factors that might affect hardship. Using panel data from the Women's Employment Study, we examine the incidence of material hardship from 1997 to 2003 among current and former welfare recipients. We then consider the extent to which income is associated with hardship. We show that hardship decreases monotonically across quintiles of the income distribution for several income measures. When we measure income as the average across the 6-year study period, a 10 percent increase in average income is associated with a 1.1 percentage point decrease in the likelihood of experiencing a hardship, a drop of about 3.4 percent. We also find that the relationship between transitory changes in income and hardship is weak. These results are consistent with findings based on a nationally representative sample of disadvantaged households from the Survey of Income and Program Participation. Our results indicate that observable factors, such as measures of mental health, are more strongly related to hardship than current income. © 2008 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • James X. Sullivan & Lesley Turner & Sheldon Danziger, 2008. "The relationship between income and material hardship," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(1), pages 63-81.
  • Handle: RePEc:wly:jpamgt:v:27:y:2008:i:1:p:63-81
    DOI: 10.1002/pam.20307
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    File URL: http://hdl.handle.net/10.1002/pam.20307
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    References listed on IDEAS

    as
    1. James X. Sullivan, 2006. "Welfare Reform, Saving, and Vehicle Ownership: Do Asset Limits and Vehicle Exemptions Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
    2. Robert Rector & Kirk Johnson & Sarah Youssef, 1999. "The Extent of Material Hardship and Poverty in the United States," Review of Social Economy, Taylor & Francis Journals, vol. 57(3), pages 351-387.
    3. Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
    4. Lesley J. Turner & Sheldon Danziger & Kristin S. Seefeldt, 2006. "Failing the Transition from Welfare to Work: Women Chronically Disconnected from Employment and Cash Welfare," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 227-249.
    5. Susan E. Mayer & Christopher Jencks, 1989. "Poverty and the Distribution of Material Hardship," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 88-114.
    6. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
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    Cited by:

    1. Sara McLanahan & Jean Knab & Sarah Meadows, 2009. "Economic Trajectories in Non-Traditional Families with Children," Working Papers 1181, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    2. Andrea Brandolini & Silvia Magri & Timothy M. Smeeding, 2010. "Asset-based measurement of poverty," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 267-284.
    3. Corman, Hope & Noonan, Kelly & Reichman, Nancy E. & Schultz, Jennifer, 2012. "Effects of financial insecurity on social interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 574-583.
    4. Leah Gjertson, 2016. "Emergency Saving and Household Hardship," Journal of Family and Economic Issues, Springer, vol. 37(1), pages 1-17, March.
    5. Luisa ANDERLONI & Daniela VANDONE, 2011. "Vulnerabilità e benessere delle famiglie italiane," Departmental Working Papers 2011-40, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    6. Fusco, Alessio, 2015. "The relationship between income and housing deprivation: A longitudinal analysis," Economic Modelling, Elsevier, vol. 49(C), pages 137-143.
    7. Notten, G, 2013. "Measuring performance : does the assessment depend on the poverty proxy?," MERIT Working Papers 031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Youngmi Kim & Jin Huang & Michael Sherraden, 2014. "What Shapes Assessment of Ability to Pay for Children's College Education?," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(3), pages 486-514, October.
    9. Lenna Nepomnyaschy & Irwin Garfinkel, 2010. "Fathers' Involvement with Their Nonresident Children and Material Hardship," Working Papers 1271, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    10. Zilanawala, Afshin & Pilkauskas, Natasha V., 2012. "Material hardship and child socioemotional behaviors: Differences by types of hardship, timing, and duration," Children and Youth Services Review, Elsevier, vol. 34(4), pages 814-825.
    11. Laura Leete & Neil Bania, 2010. "The effect of income shocks on food insufficiency," Review of Economics of the Household, Springer, vol. 8(4), pages 505-526, December.
    12. repec:bla:jconsa:v:51:y:2017:i:3:p:519-548 is not listed on IDEAS
    13. Vargas, Edward D., 2015. "Immigration enforcement and mixed-status families: The effects of risk of deportation on Medicaid use," Children and Youth Services Review, Elsevier, vol. 57(C), pages 83-89.
    14. repec:bla:jconsa:v:51:y:2017:i:3:p:566-597 is not listed on IDEAS
    15. Kelly Noonan & Hope Corman & Nancy E. Reichman, 2014. "Effects of Maternal Depression on Family Food Insecurity," NBER Working Papers 20113, National Bureau of Economic Research, Inc.
    16. Roderick Rose & Susan Parish & Joan Yoo, 2009. "Measuring Material Hardship among the US Population of Women with Disabilities Using Latent Class Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 94(3), pages 391-415, December.
    17. Manuela Deidda, 2015. "Economic Hardship, Housing Cost Burden and Tenure Status: Evidence from EU-SILC," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 531-556, December.
    18. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
    19. repec:pri:crcwel:wp10-12-ff is not listed on IDEAS
    20. repec:pri:crcwel:wp11-08-ff is not listed on IDEAS
    21. repec:pri:crcwel:wp09-10-ff is not listed on IDEAS
    22. repec:spr:soinre:v:134:y:2017:i:1:d:10.1007_s11205-016-1412-4 is not listed on IDEAS
    23. Nielsen, Martin Reinhardt & Pouliot, Mariève & Kim Bakkegaard, Riyong, 2012. "Combining income and assets measures to include the transitory nature of poverty in assessments of forest dependence: Evidence from the Democratic Republic of Congo," Ecological Economics, Elsevier, vol. 78(C), pages 37-46.
    24. Natasha V. Pilkauskas & Janet Currie & Irwin Garfinkel, 2011. "The Great Recession and Material Hardship," Working Papers 1312, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..

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