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How Not to Be Poor
NATIONAL CENTER FOR POLICY ANALYSIS ^ | January 15, 2003 | Blake Bailey

Posted on 01/18/2003 10:50:30 AM PST by conservativecorner

About 31 million Americans live in households with incomes below the poverty level, according to the latest U.S. Census data. Poverty is more than a lack of income. It is also the consequence of specific behaviors and decisions. The 2001 Census data clearly show that dropping out of high school, staying single, having children without a spouse, working only part time or not working at all substantially increase the chances of long-term poverty. Certain behaviors are a recipe for success. Among those who finish high school, get married, have children only within a marriage and go to work, the odds of long-term poverty are virtually nil.

Stay in School. Simply completing high school greatly increases a person's chances of not being poor. [SeeFigure I.] The Census Bureau reports that:

Only 9.6 percent of high school graduates are poor, compared to 22.2 percent of those without a diploma. Of those people who complete some college, only 6.6 percent fall below the poverty line. This drops to 3.3 percent of those with a bachelor's degree or higher. Furthermore, these lower propensities for poverty last throughout a person's life. In every adult age group, people who fail to obtain a high school degree are more than twice as likely to fall into poverty. People ages 25 to 54 are nearly three times as likely.

The numbers are worse for long-term poverty - poverty that lasts for years. An Organization for Economic Cooperation and Development (OECD) report found that in the United States:

High school dropouts suffer a long-term poverty rate of 14.2 percent, while high school grads have only a 3.8 percent long-term poverty rate. Only 1.2 percent of adults receiving some education beyond high school are poor long-term. Get a Job. Despite concerns about the working poor, most people who work full time, even at minimum wage jobs, avoid poverty:

Only 2.6 percent of people 16 years or older with full time jobs are poor, according to Census data. By contrast, 11.4 percent of part-time workers fall under the poverty line, and 20.8 percent of those who do not work fall below the poverty line. The advantages of work hold true even for at-risk groups, such as single mothers:

About 83 percent of single mothers who do not work are in poverty, compared to nearly 60 percent who work part time. But less than 18 percent of single mothers who work full time are in poverty. Working also significantly reduces long-term poverty. According to an analysis of the Census Bureau's Survey of Income and Program Participation, 10.8 percent of adults who do not work are poor over the long term. In contrast, only 1.7 percent of those employed part time stay poor for extended periods. People employed full time have a 0.4 percent chance of long-term poverty.

Moreover, the government can encourage behavioral changes. Research shows that between one-third and one-half of the fall in poverty among single mothers on welfare after 1994 was due to the 1996 welfare reforms that encouraged work.

Get Married. Marriage is also a strong deterrent to poverty. [See Figure II.]

Only 4.0 percent of married couples without children are in poverty, according to Census data. In contrast, the poverty rate for singles without children is 8.6 percent. Moreover, married couples are less likely to experience long-term poverty. According to the OECD report:

Married couples without children have a long-term poverty rate of only 1.3 percent. By contrast, 7.9 percent of single adults experience long-term poverty. Marriage promotes economic advancement. One study found that married men earn 22 percent more than their unmarried counterparts. The OECD reports that a woman head of household who marries increases her chances of exiting poverty by 23 percent. A single person who marries and finds employment increases his or her chances of leaving poverty by over 50 percentage points.

Don't Have Children Out of Wedlock. Having children outside of marriage is costly for both the individual and the child. The Census Bureau reports:

Of those households with two or more children under the age of 18, 7.9 percent of married households were poor, while 51.6 percent of never-married households were poor. Of those households with two or more children under the age of 6, 11.5 percent of married households were poor, while 62.4 percent of never-married households were poor. According to the OECD study, spells of poverty are 12.6 percent shorter for married households compared to female-headed households. Similarly, married households with children are much more likely to avoid long-term poverty than single parent households. Only 1.7 percent of married households with children suffer long-term poverty, while 26 percent of single parent households are poor long term.

Child poverty is dependent on the behavior of parents. Using data from the National Longitudinal Survey of Youth, a Heritage Foundation study finds:

On average, a child raised by a never-married mother is 9 times more likely to live in poverty than a child raised by two parents in an intact marriage. Nearly 80 percent of children in long-term poverty live in some type of broken family or with a never-married parent. Children born to parents who do not marry spend, on average, 56.7 percent of their lives in poverty as opposed to just 6.3 percent for children in married families. Conclusion Poverty is most often a consequence of specific behavior. By engaging in other behaviors, people can avoid poverty. To help people escape poverty, government programs should encourage these behaviors. The 1996 welfare reforms encouraged work - and the rate of poverty fell. Proposals to encourage marriage, like President Bush's plan to eliminate the marriage penalty, could have similar benefits.

Blake Bailey is an intern with the National Center for Policy Analysis.


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1 posted on 01/18/2003 10:50:30 AM PST by conservativecorner
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To: conservativecorner
A lot of words for "being stupid and lazy leads to poorness"
2 posted on 01/18/2003 10:51:45 AM PST by Monty22
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To: All
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3 posted on 01/18/2003 10:52:14 AM PST by Support Free Republic (Your support keeps Free Republic going strong!)
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To: conservativecorner
What a great article. Thanks for taking the time to post it.
4 posted on 01/18/2003 10:52:22 AM PST by Howlin (It's yet ANOTHER good day to be a Republican!)
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To: conservativecorner
Truth bump
5 posted on 01/18/2003 10:56:16 AM PST by Free the USA (Stooge for the Rich)
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To: conservativecorner
I am a highscool dropout raised in a single parent home. I am not poor by any stretch...fwiw.

But I was the only sophmore in my highscool that employed up to 6 Senior classmen in my business too...and I owned a truck before I could drive it.

6 posted on 01/18/2003 10:59:48 AM PST by antaresequity
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To: conservativecorner
If you have the time, a book that looks at behaviour vs outcome is "The Heavenly City" and the follow-on, "The Heavenly City Revisited"
Both well written and contain case study material.

Have fun
7 posted on 01/18/2003 10:59:58 AM PST by ASOC
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To: Free the USA
Wait til the bitter single mom's respond. They will each explain how they are a shining example of "good parenting".
8 posted on 01/18/2003 11:00:09 AM PST by blackdog
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To: blackdog
Wait til the bitter single mom's respond. They will each explain how they are a shining example of "good parenting".

Yep the Author is just a Stooge for the Rich.
/sarcasm

9 posted on 01/18/2003 11:05:01 AM PST by Free the USA (Stooge for the Rich)
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To: conservativecorner
I did it! I donated to Free Republic and helped save Larry the Lobster! But I ate his brother! Bwaaahahahahah
10 posted on 01/18/2003 11:05:20 AM PST by squarebarb
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To: Free the USA
http://www.atrentino.com/Beggars1.html
11 posted on 01/18/2003 11:06:01 AM PST by Davis
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To: conservativecorner
[N]ot working at all substantially increase[s] the chances of long-term poverty.

This isn't fair!!!!

12 posted on 01/18/2003 11:07:02 AM PST by coloradan
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To: conservativecorner
working only part time or not working at all substantially increase the chances of long-term poverty.

Ya THINK?

13 posted on 01/18/2003 11:07:09 AM PST by Blood of Tyrants ( Civilized debate can only exist when all parties involved are civilized.)
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To: conservativecorner
Is it a no-no to mention natural talent? Many are without the ability to graduate HS and College. There is an IQ mental ability whatever it might be called. I don't have the physical ability to run a 4.4 forty and it has nothing to do with if I had a single parent.

However employment for those unable (not lazy, etc.) to finish HS are finding private enterprise jobs 'done gone'. That leaves government jobs, crime and welfare. All of which cost more than paying a few bucks more for American made products. It's pay me now or pay me later.

14 posted on 01/18/2003 11:07:51 AM PST by ex-snook (Saddam is no threat to Americans but unbalanced trade is.)
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To: All
My mother is a great example of how to work your way out of poverty. She divorced her second husband because he used to beat her up. He was very well-off, but she didn't try to take any of his money, property, or vehicles.

She had good credit and got a house loan. She worked three jobs. We even went without a refrigerator for awhile one year. Thank God it was winter then so we could keep things cold! However, she was excellent at saving money, so we had one within a few months.

I graduated shortly after that and moved out, and then she was able to buy a better car. She eventually met and married a man that I believe is probably the love of her life. She decided a couple of years ago that it was time to reinvent herself and acclimate to a more competitive workforce.

So, in addition to working 50 plus hours a week, she started taking OSHA classes twice a week. She left her old job, found a much better one with her new education, and decided to further her education. She has a 4.0 gpa at a technical college in town.

I'm so proud of my mom. She is a fanatical conservative, and will tell anyone that listens that hard work and education can and will get you somewhere in life. She always says, if you want to do something, you have to do it yourself because no one is going to do it for you.
15 posted on 01/18/2003 11:19:42 AM PST by Morrigan
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To: Morrigan
Thanks much for sharing your mom's success with me. I know many women are on their own through no fault of their own, and to raise a family as a single parent must have it's hurdles. Hard work does pay off for those who stick with it.
16 posted on 01/18/2003 11:24:55 AM PST by conservativecorner
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To: Morrigan
Right on!! Good for your mom.
17 posted on 01/18/2003 11:24:56 AM PST by winodog ( Wheres my muffler?)
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To: conservativecorner
You are right, it does pay off, and I think it helps set a good example, too. I think that is why we see generations of a family on welfare. Hard working people seem to normally have good values as well. I am just about the only one out of people I know my age that is married with children and that has a good job. A woman I know that came from a welfare family collects welfare now herself. She also lives in a crappy apt, has a crappy car, and some boyfriend that cheats on her. And she wonders why her kids are getting in trouble at school and with the law!!
18 posted on 01/18/2003 11:35:07 AM PST by Morrigan
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To: conservativecorner
Interesting article but nothing surprising. Some might be surprised to see that single people are more likely to be poor than married people. But it makes sense when you think about it. People who are single tend to go out a lot more, such as restaurants and bars while people who are married tend to stay home most nights and cook their own dinners. As well, people who are married with a family to support are under more pressure to make more money.
19 posted on 01/18/2003 11:38:21 AM PST by SamAdams76
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To: Morrigan
She worked three jobs.

That's why jobs are so important --they are the only way out of poverty. Even a college degree means nothing at all if it can't get you a job.

20 posted on 01/18/2003 11:42:16 AM PST by FITZ
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