Review of \u3cem\u3eInequality in America: What Role for Human Capital Policies.\u3c/em\u3e James J. Hechman and Alan B. Krueger. Reviewed by Sondra Beverly.

Book review of James J. Heckman and Alan B. Krueger, Inequality in America: What Role for Human Capital Policies? Cambridge, MA: MIT Press, 2004. $40.00 cloth

How Can the Poor Save? Theory and Evidence on Saving in Low-Income Households

There is an emerging policy and academic discussion, supported by a growing body of empirical evidence, regarding the potentially positive effects of asset accumulation in lowincome households. However, at least two questions precede this discussion: Can the poor save? And, if so, how can programs and policies promote saving by the poor? This paper begins to address these questions through an interdisciplinary review of theory and empirical evidence on saving. The first section summarizes existing theories of saving and asset accumulation. In the second section, a general model of saving is presented. This model emphasizes contextual influences as well as individual characteristics. Subsequent sections consider variables related to ability to save and willingness to save, with an emphasis on poor and near-poor individuals. The final section offers a discussion of research and policy implications, including a list of testable propositions

Differences Between SEED Account Openers and Non-Openers: Demographic and Economic Characteristics

Differences Between SEED Account Openers and Non-Openers: Demographic and Economic Characteristic

Review of \u3cem\u3eConsumption and Social Welfare: Living Standards and Their Distribution in the United States.\u3c/em\u3e Daniel T. Slesnick. Reviewed by Sondra G. Beverly.

Book review of Daniel T. Slesnick, Consumption and Social Welfare: Living Standards and Their Distribution in the United States. New York: Cambridge University Press, 2001. $54.95 hardcover

Financial Knowledge, Attitudes, Ownership, and Practices Among Families in the SEED Pre-School Demonstration and Impact Assessment

Financial Knowledge, Attitudes, Ownership, and Practices Among Families in the SEED Pre-School Demonstration and Impact Assessmen

Economic Poverty Reconsidered: The Case for Direct Measures

Although there has been much discussion in the United States regarding the definition of economic poverty, we continue to measure poverty almost exclusively in terms of current income. However, there are many reasons to supplement measures of income-poverty with “direct” measures of poverty, that is, with measures that capture the inadequate consumption of particular goods and services. First, direct and indirect measures of poverty represent alternative conceptions of poverty. Second, experiences of “direct” poverty are of both normative and instrumental concern. Third, direct measures of poverty have a number of practical uses, particularly in the context of welfare reform

Assets for Independence: Asset Building for and by Young People

Young people need assets to make the transition to adulthood. This article summarizes the four preceding articles on youth and saving, identifies policy and program implications, and suggests directions for future research. It is clear that saving is difficult for many people and throughout the life course. Efforts to help young people accumulate assets might encourage saving by parents, encourage saving by youth, or provide subsidies. The latter strategy is most likely to reduce inequities associated with socioeconomic status. These strategies do not have to be pursued in isolation, and ongoing conversations across disciplines and between scholars and practitioners could yield useful insight. In addition, research on existing asset-building initiatives that combine two or more of these strategies will provide important lessons for policy and program development

A Framework of Asset-Accumulation Stages and Strategies

We propose that asset accumulation occurs in three stages. In the first stage (reallocation), current resource inflows must exceed current outflows. To meet this objective, people reallocate resources from current consumption, current leisure, or future consumption or leisure. In the second stage (conversion), people may convert resources from liquid to illiquid forms. In the third stage (maintenance), individuals resist temptations to dissave. We suggest that people adopt psychological and behavioral strategies to achieve each of these objectives. Putting the two types of strategies together with the three stages of asset accumulation results in six strategy groups. We provide examples of each strategy group and discuss implications related to encouraging account ownership among the unbanked, improving asset- accumulation programs, and improving financial-education curricula.Saving, asset accumulation, self-constraint,pyschological savings strategies

Human Capital and Social Work

This article is an update and continuation of Theodore Schultz’s seminal, but largely unheeded, 1959 article on human capital. Like Schultz, we suggest that building human capital should be a key development strategy for social workers. Empirical research demonstrates that human capital has important positive outcomes. However, opportunities for human capital development are not equally accessible to all. By facilitating human capital development among disadvantaged groups, social workers can help individuals obtain skills that will enable them to compete in post-industrial labor markets. This emphasis on investment and development is particularly relevant today since, in the current political climate, there is declining support for residual and consumption-oriented interventions. After documenting outcomes from human capital and differential opportunities for human capital development, we offer suggestions for facilitating human capital among low-income groups