Macroeconomic Performance and the Poverty Rate: A Return to Normalcy?
Since the mid-1980s, several important studies have established the statistical relationship between the 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 paper, we present the results of our study of the relationships reported in these studies, using annual time-series data on macroeconomic variables such as the unemployment rate and per capita GDP growth from 1959 through 1997. Like these earlier studies, we too find that economic performance seems to have had a smaller antipoverty effect during the 1970s and 1980s than it did in earlier years. However, our estimates suggest that the weakened growth-poverty relationship may have been an aberration of this period, and that the “normal” 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.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: 3412 Social Science Building, 1180 Observatory Drive, Madison, WI 53706|
Phone: (608) 262-6358
Fax: (608) 265-3119
Web page: http://www.ssc.wisc.edu/irp/dp/dplist.htm
More information through EDIRC
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.:
- Lerman, Robert I, 1996. "The Impact of the Changing US Family Structure on Child Poverty and Income Inequality," Economica, London School of Economics and Political Science, vol. 63(250), pages S119-39, Suppl..
- 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(2), pages 1-74.
- James Tobin, 1993. "Poverty in Relation to Macroeconomic Trends, Cycles, and Policies," Cowles Foundation Discussion Papers 1030R, Cowles Foundation for Research in Economics, Yale University.
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Rebecca M. Blank & Alan S. Blinder, 1985. "Macroeconomics, Income Distribution, and Poverty," NBER Working Papers 1567, National Bureau of Economic Research, Inc.
- Rebecca M. Blank & David Card, 1993. "Poverty, Income Distribution, and Growth: Are They Still Connected," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2), pages 285-340.
- Elizabeth T. Powers, 1995. "Growth and poverty revisited," Economic Commentary, Federal Reserve Bank of Cleveland, issue Apr.
When requesting a correction, please mention this item's handle: RePEc:wop:wispod:1187-99. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.