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1. Measuring Economic Disadvantage During Childhood: A Group-Based Modeling Approach

Author:
Mary Clare Lennon, Robert L. Wagmiller, Philip M. Alberti, and J. Lawrence Aber
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Recent research suggest that child well-being and subsequent status attainment are influenced not only by the overall magnitude of exposure to family economic disadvantage during childhood, but also by the age of exposure and significant changes in family economic circumstances. Unfortunately, traditional measures of children's economic deprivation – such as, permanent and transitory income, persistent or cumulative poverty, and the number and length of poverty spells – fail to differentiate between exposure to disadvantage at different stages in childhood and largely ignore how family economic circumstances are changing over time. In this paper we propose a new method for assessing economic disadvantage during childhood that captures both children's overall levels of exposure to economic disadvantage and their patterns of exposure. This new method, which takes advantage of recent advances in finite mixture modeling, uses a longitudinal latent class model to classify children into a limited number of groups with similar histories of exposure to family economic disadvantage. Using this new methodology, group membership can be related to both family background characteristics and achievement in childhood and early adulthood, making it possible both to assess how family characteristics affect patterns of exposure to disadvantage during childhood and directly test alternative theories about the effect of different patterns of exposure on achievement. In this paper the relationship between background factors – such as race, parental education, and family structure – and group membership is investigated, as is the association between group membership and achievement in early adulthood. The use of this technique is demonstrated using data from the Panel Study of Income Dynamics (PSID).
Topic:
Conflict Resolution, Conflict Prevention, Development, and Economics

2. Living at the Edge: America's Low–Income Children and Families

Author:
Hsien-Hen Lu, Julian Palmer, Younghwan Song, Mary Clare Lennon, and J. Lawrence Aber
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
By analyzing data from the Current Population Survey March Supplements, Living at the Edge explores the following questions about children in low-income families in the United States: What are the overall changes in the low-income and poverty rates for children over the past quarter century? How has the population of children in low-income families changed over the past decade? Which children are more likel to live in low-income famlies? How have changes in parental employment status affected the likelihood children living in low-income families? What are the state by state variations in child low-income and poverty rates, and how have these changed in the last decade? How does a more inclusive definition of family income and expenses affect our understanding of the poverty and near-poverty rates of children in low-income families?
Topic:
Economics, Human Welfare, and Industrial Policy
Political Geography:
United States

3. Living at the Edge: America's Low-Income Children and Families

Author:
Hsien-Hen Lu, Younghwan Song, Mary Clare Lennon, and J. Lawrence Aber
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
By analyzing data from the Current Population Survey March Supplements, Living at the Edge explores the following questions about children in low-income families in the United States: What are the overall changes in the low-income and poverty rates for children over the past quarter century? How has the population of children in low-income families changed over the past decade? Which children are more likely to live in low-income families? How have changes in parental employment status affected the likelihood of children living in low-income families? What are the state by state variations in child low-income and poverty rates, and how have these changed in the last decade? How does a more inclusive definition of family income and expenses affect our understanding of the poverty and near-poverty rates of children in low-income families? This report helps document significant improvements in the child lowincome rate as well as the significant decrease in the proportion of children who relied on public assistance during the 1990s. However, Living at the Edge also finds a notable increase in the share of children who lived in near-poor families (those with incomes between 100 and 200 percent of the poverty line) among children in low-income families during the 1990s. Many disadvantaged groups of children, including those with young parents, minority parents, parents with limited education, or unmarried parents, were less likely to live in poor or lowincome families in the late 1990s than such children a decade earlier. The improvement in the child low-income rates of these disadvantaged groups was closely related to an increase in parental employment during the late 1990s. However, the low-income rate worsened for children whose more educated parent had a high-school diploma but no college education. For children of many disadvantaged social groups, parental employment appears to do less to protect them from economic hardship then it did a decade earlier. The groups that suffered the most in reduced economic security given parental employment status were those in the medium risk ranks (children in families with at least one parent between ages 25 to 39, children whose more educated parent had only has a high school diploma, and in father-only families). The report also notes that the official measure of poverty ignores the burden of medical and work related expenses as well as taxes and therefore tends to underestimate the share of children in near-poor and low-income families facing economic insecurity. Finally, we discuss the policy implications for our findings.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
United States