Two Steps Forward and Three Steps Back: The "Cliff Effect" - Colorado's Curious Penalty for Increased Earnings

Simply being employed does not mean economic self-sufficiency for women in Colorado. In fact, it may actually work against them. Currently in Colorado, public assistance for the working poor isn't designed to allow women the opportunity to incrementally increase their wages to work toward self-sufficiency. In fact, as a family's earnings increase and they rise above the official poverty level, they begin to lose eligibility for tax credits, childcare subsidies, health care coverage and food stamps even though they are not yet self-sufficient. So although parents may be working and earning more, their families can't reach financial security. This is called the Cliff Effect, and it results in many women refusing pay increases, forcing them to live a life of dependence. We conducted groundbreaking research to learn more about the causes of the Cliff Effect and lay the groundwork for solutions

Making Work Pay in Montana

In Montana, 44 percent of children live in low-income families — defined as income below twice the federal poverty level (FPL). Despite 86 percent of these children having at least one parent who is employed, many of their families struggle to make ends meet on earnings alone. Work support benefits such as the Earned Income Tax Credit, child care assistance, and public health insurance can help families close the gap between earnings and the cost of basic expenses. While work supports help parents get by on low wages, families who receive them often face difficulties getting ahead. Many encounter "benefit cliffs" where small increases in earnings lead to abrupt work support losses. As a result, families are often worse off after a small wage increase. To encourage employment as the primary path to economic security, a comprehensive work support system should accomplish two goals: Provide adequate family resources. If parents work full-time, their earnings combined with work supports should provide the resources necessary to cover basic family expenses. Reward progress in the workforce. When parents‘ earnings increase, their families should always be better off Using results from NCCP‘s Basic Needs Budget Calculator and Family Resource Simulator, this brief highlights findings on the effectiveness of work support policies in Montana

Basic Facts About Low-income Children, 2008: Children Aged 6-11

Children represent 25 percent of the population. Yet, 41 percent of all children live in low-income families and nearly one in every five live in poor families. Our very youngest children, infants and toddlers under age 3, appear to be particularly vulnerable with 44 percent living in low-income and 22 percent living in poor families. Winding up in a low-income or poor family does not happen by chance. There are significant factors related to children's experiences with economic insecurity, such as race/ethnicity and parents' education and employment. This fact sheet describes the demographic, socio-economic, and geographic characteristics of infants and toddlers and their parents — highlighting the important factors that appear to distinguish low-income and poor children in this age group from their less disadvantaged counterparts

Asset Poverty and Debt Among Families with Children

Increasingly the significance of asset ownership among low-income families is being recognized. Assets such as savings and homeownership are vital components of a family's economic security, along with income and human and social capital. In this report, we use the term "assets" to refer to financial and economic resources, not including human capital. Unlike labor market earnings, income generated from assets provides a cushion for families in case of job loss, illness, death of a parent, or even natural disaster. This cushion may be especially important for the working poor, whose economic lives can be severely impacted by even short periods of unemployment. Asset ownership can also have long-term consequences for children. Research shows parental financial assets such as savings are positively associated with the cognitive development of school-age children. Homeownership is also known to have a positive effect on high school graduation. There are two major ways in which assets positively benefit children. First, housing assets can be seen as a proxy for the quality of residence. Homeownership provides residential stability, and the market value of homes often indicates the quality of school that children attend. Secondly, financial assets are potential resources for a family to invest in children. They can be used for sending children to preparatory schools or financing a college education. Thus, family assets can positively promote children's well-being and educational achievements. Family assets are particularly important for low-income families; however, the prospects are not particularly bright for building their assets. Given limited incomes, many low-income families often struggle to make ends meet and save. Between 1984 and 2001, the level of debt increased substantially among low- and moderate-income families, and the majority of low-income families experienced having family debt greater than or equal to 40 percent of total family income. Further, the bankruptcy rate among middle-class families has increased; and African-American and Hispanic middle class families are more likely to file for bankruptcy than their White middle class counterparts. This research brief investigates the status of asset ownership and debt among families with children aged birth to 18, using the Panel Study of Income Dynamics (PSID) 2001 and 2007 data. It also examines disparities in asset holdings and debt by race and gender of family heads as well as age of children in the family. As asset holdings and debt can impact the well-being of children, in this report we examine the economic security of families with children based on family asset holdings and debt. First, we explore the concept of asset poverty and estimate the proportion of families who are asset poor, followed by the examination of debt and financial assets of families with children. The report concludes with policy implications and recommendations to promote the financial security of families with children

La patologización de la conducta: discursos asistenciales acerca del trastorno disocial

En los últimos años, nuestra sociedad ha asistido al crecimiento del número de diagnósticos de diferentes tipos de trastornos de conducta entre la población infantil y adolescente. Desde diferentes disciplinas, principalmente del ámbito de la salud y la educación, diversos autores han investigado las causas de este fenómeno, así como las posibles soluciones. Sin embargo, a menudo estos estudios han dejado de lado el papel de un actor esencial en el proceso terapéutico: el experto. Con la idea de desnaturalizar los discursos a partir de los cuales se patologiza el comportamiento y se prescriben pautas para su transformación, en este trabajo el foco se centrará precisamente en las experiencias y perspectivas de trabajadores del circuito asistencial, buscando analizar sus definiciones de salud y enfermedad, la relación que establecen entre la patología y el contexto cercano y amplio y la identidad que atribuyen al paciente. Para ello, he decidido centrarme en el trastorno disocial, un diagnóstico aplicado a las poblaciones más jóvenes, que se determina a partir de criterios basados en la observación de agentes externos al paciente, no tanto de su propia experiencia subjetiva, y que se ha mostrado profundamente condicionado por el contexto cercano del individuo, revelando su carácter de categoría cultural

Basic Facts About Low-income Children, 2008: Children Under Age 3

Children represent 25 percent of the population. Yet, 41 percent of all children live in low-income families and nearly one in every five live in poor families. Our very youngest children, infants and toddlers under age 3, appear to be particularly vulnerable with 44 percent living in low-income and 22 percent living in poor families. Winding up in a low-income or poor family does not happen by chance. There are significant factors related to children's experiences with economic insecurity, such as race/ethnicity and parents' education and employment. This fact sheet describes the demographic, socio-economic, and geographic characteristics of infants and toddlers and their parents — highlighting the important factors that appear to distinguish low-income and poor children in this age group from their less disadvantaged counterparts

Asset Poverty and Debt Among Families with Children

Increasingly the significance of asset ownership among low-income families is being recognized. Assets such as savings and homeownership are vital components of a family's economic security, along with income and human and social capital. In this report, we use the term "assets" to refer to financial and economic resources, not including human capital. Unlike labor market earnings, income generated from assets provides a cushion for families in case of job loss, illness, death of a parent, or even natural disaster. This cushion may be especially important for the working poor, whose economic lives can be severely impacted by even short periods of unemployment. Asset ownership can also have long-term consequences for children. Research shows parental financial assets such as savings are positively associated with the cognitive development of school-age children. Homeownership is also known to have a positive effect on high school graduation. There are two major ways in which assets positively benefit children. First, housing assets can be seen as a proxy for the quality of residence. Homeownership provides residential stability, and the market value of homes often indicates the quality of school that children attend. Secondly, financial assets are potential resources for a family to invest in children. They can be used for sending children to preparatory schools or financing a college education. Thus, family assets can positively promote children's well-being and educational achievements. Family assets are particularly important for low-income families; however, the prospects are not particularly bright for building their assets. Given limited incomes, many low-income families often struggle to make ends meet and save. Between 1984 and 2001, the level of debt increased substantially among low- and moderate-income families, and the majority of low-income families experienced having family debt greater than or equal to 40 percent of total family income. Further, the bankruptcy rate among middle-class families has increased; and African-American and Hispanic middle class families are more likely to file for bankruptcy than their White middle class counterparts. This research brief investigates the status of asset ownership and debt among families with children aged birth to 18, using the Panel Study of Income Dynamics (PSID) 2001 and 2007 data. It also examines disparities in asset holdings and debt by race and gender of family heads as well as age of children in the family. As asset holdings and debt can impact the well-being of children, in this report we examine the economic security of families with children based on family asset holdings and debt. First, we explore the concept of asset poverty and estimate the proportion of families who are asset poor, followed by the examination of debt and financial assets of families with children. The report concludes with policy implications and recommendations to promote the financial security of families with children

A Profile of Disconnected Young Adults in 2010

The purpose of this report is to highlight a growing segment of the population who are arriving at young adulthood disconnected from the main pathways leading to economic independence. Arriving at young adulthood in a state of disconnection can have consequences for both young adults and the larger society. Young adults who have low educational attainment or who are out of school or unemployed for extended periods of time may be more likely to engage in delinquent behavior, turn to illegal activities as a source of income, and be incarcerated. The consequences of disconnection may also result in long-term penalties, such as underemployment and lower earnings over the life course. Young adults disconnected for three or more years are about 14 times more likely to be poor and earn about two and one half times less in earnings and are about two to three times less likely to be employed full-time than young adults who had never been disconnected. Disconnectedness experienced during young adulthood may also have serious health consequences. Research shows that different components of disconnectedness, such as having less than high school education or being unemployed is associated with suboptimal health and mental health outcomes. Furthermore, disconnected young adults are more likely to rely on some form of public assistance. Thus, the costs of disconnection to government can include increased transfer payments and social support expenses as well as a decrease in tax revenues from their lack of participation in the labor market. In short, this population deserves our attention given the long-term consequences being disconnected can pose for a successful transition to adulthood

Most Low-Income Parents Are Employed

Despite low levels of unemployment, average household income has declined since 2000. The number of children living in low-income families has continued to rise. Programs that provide supports for low-income, working parents can increase income and child well-being

Parents' Low Education Leads to Low Income, Despite Full-Time Employment

Higher education is one of the most effective ways that parents can raise their families' incomes. There is clear evidence that higher educational attainment is associated with higher earnings. Over the past two decades, parents with less education have been losing economic ground. Policies that support education for low-income parents and children offer them the potential for lasting economic security