The Direct Effect of Taxes and Transfers on Changes in the U.S. Income Distribution, 1967-2015.

Scholars have increasingly drawn attention to rising levels of income inequality in the United States. However, prior studies have provided an incomplete account of how changes to specific transfer programs have contributed to changes in income growth across the distribution. Our study decomposes the direct effects of tax and transfer programs on changes in the household income distribution from 1967 to 2015. We show that despite a rising Gini coefficient, lower-tail inequality (the ratio of the 50th to 10th percentile) declined in the United States during this period due to the rise of in-kind and tax-based transfers. Food assistance and refundable tax credits account for nearly all the income growth between 1967 and 2015 at the 5th percentile and roughly one-half the growth at the 10th percentile. Moreover, income gains near the bottom of the distribution are concentrated among households with children. Changes in the income distribution were far less progressive among households without children.

Young adult poverty in historical perspective: The role of policy supports and early labor market experiences.

Recent research using an improved measure of poverty finds that poverty has fallen by nearly forty percent since the 1960s in the United States. But past research has not examined whether this finding holds across detailed demographic groups who might be more or less vulnerable to poverty. This paper helps fill that gap, focusing on one such vulnerable subgroup: young adults. Using the Current Population Survey, this paper examines long-term trends in young adult poverty in comparison to other groups. In contrast to almost all other groups, young adults have seen no decrease in poverty since the 1960s. We explore potential reasons for this fact, finding that young adults lack access to benefits from government programs, and are increasingly unmarried, living alone, and disconnected from the labor market, factors that leave young adults more vulnerable than other groups to poverty. The findings have implications for how antipoverty policies might assist this vulnerable group.

Progress on Poverty? New Estimates of Historical Trends Using an Anchored Supplemental Poverty Measure.

This study examines historical trends in poverty using an anchored version of the U.S. Census Bureau's recently developed Research Supplemental Poverty Measure (SPM) estimated back to 1967. Although the SPM is estimated each year using a quasi-relative poverty threshold that varies over time with changes in families' expenditures on a core basket of goods and services, this study explores trends in poverty using an absolute, or anchored, SPM threshold. We believe the anchored measure offers two advantages. First, setting the threshold at the SPM's 2012 levels and estimating it back to 1967, adjusted only for changes in prices, is more directly comparable to the approach taken in official poverty statistics. Second, it allows for a better accounting of the roles that social policy, the labor market, and changing demographics play in trends in poverty rates over time, given that changes in the threshold are held constant. Results indicate that unlike official statistics that have shown poverty rates to be fairly flat since the 1960s, poverty rates have dropped by 40 % when measured using a historical anchored SPM over the same period. Results obtained from comparing poverty rates using a pretax/pretransfer measure of resources versus a post-tax/post-transfer measure of resources further show that government policies, not market incomes, are driving the declines observed over time.

Trends in Child Poverty Using an Improved Measure of Poverty.

The official measure of poverty has been used to assess trends in children's poverty rates for many decades. But because of flaws in official poverty statistics, these basic trends have the potential to be misleading. We use an augmented Current Population Survey data set that calculates an improved measure of poverty to reexamine child poverty rates between 1967 and 2012. This measure, the Anchored Supplemental Poverty Measure, is based partially on the US Census Bureau and Bureau of Labor Statistics' new Supplemental Poverty Measure. We focus on 3 age groups of children, those aged 0 to 5, 6 to 11, and 12 to 17 years. Young children have the highest poverty rates, both historically and today. However, among all age groups, long-term poverty trends have been more favorable than official statistics would suggest. This is entirely due to the effect of counting resources from government policies and programs, which have reduced poverty rates substantially for children of all ages. However, despite this progress, considerable disparities in the risk of poverty continue to exist by education level and family structure.

Waging War on Poverty: Poverty Trends Using a Historical Supplemental Poverty Measure.

Using data from the Consumer Expenditure Survey and the March Current Population Survey, we provide poverty estimates for 1967 to 2012 based on a historical Supplemental Poverty Measure (SPM). During this period, poverty, as officially measured, has stagnated. However, the official poverty measure (OPM) does not account for the effect of near-cash transfers on the financial resources available to families, an important omission since such transfers have become an increasingly important part of government anti-poverty policy. Applying the historical SPM, which does count such transfers, we find that trends in poverty have been more favorable than the OPM suggests and that government policies have played an important and growing role in reducing poverty-a role that is not evident when the OPM is used to assess poverty. We also find that government programs have played a particularly important role in alleviating child poverty and deep poverty, especially during economic downturns.

Time for children: trends in the employment patterns of parents, 1967-2009.

Using data from the 1967-2009 years of the March Current Population Surveys (CPS), we examine two important resources for children's well-being: time and money. We document trends in parental employment, from the perspective of children, and show what underlies these trends. We find that increases in family work hours mainly reflect movements into jobs by parents-particularly mothers, who in prior decades would have remained at home. This increase in market work has raised incomes for children in the typical two-parent family but not for those in lone-parent households. Time use data from 1975 and 2003-2008 reveal that working parents spend less time engaged in primary childcare than their counterparts without jobs but more than employed peers in previous cohorts. Analysis of 2004 work schedule data suggests that non-daytime work provides an alternative method of coordinating employment schedules for some dual-earner families.

Parental Work Schedules and Children's Cognitive Trajectories.

Previous work has shown an association between mothers' nonstandard work schedules and children's well-being. We built on this research by examining the relationship between parental shift work and children's reading and math trajectories from age 5/6 to 13/14. Using data (N=7,105) from the National Longitudinal Survey of Youth and growth curve modeling, we found that children's math and reading trajectories were related to parents' type of nonstandard shifts (i.e., evening, night, or variable). We found that having a mother who worked more years at a night shift was associated with lower reading scores, having a mother work more years at evening or night shifts was associated with reduced math trajectories, and having a father work more years at an evening shift was associated with reduced math scores. Mediation tests suggest that eating meals together, parental knowledge about children's whereabouts, and certain after-school activities might help explain these results.