PovertyChapter 13 Section 3

Family – group of 2 or more related peoples living in same housing unit

Household – all people living in the same housing unit

Poverty Threshold (poverty line) ◦ Income level below what is needed to support

family or household◦ Changes according to situations

Poverty

Poverty Rate – percentage of people with income below the official threshold◦ Often differ sharply

by groups Race and ethnic origin Type of family Age Residence

The Poverty Rate

Shifts in Family Structure◦ Single-parent (single mom)

Location Racial and Gender Discrimination Growth of Low-Skill Service Jobs Lack of Education

Causes of Poverty

Income Inequality◦ Top 20% made 50% of the income in 2006◦ Bottom 60% only made about 26% in 2006

Income Gap◦ Factors

Differences in skills and education Inheritances Field of Work

Income Distribution

The Earned Income Tax Credit (EITC)◦ Offsets the SS tax; earn based upon earned

income and number of qualifying children Enterprise Zones

◦ Companies can locate to be free of taxes and regulations (inner cities)

Employment Assistance Housing Assistance Welfare Reform

◦ Welfare to Workfare (work for your assistance)

Antipoverty Policies