An Empirical Study of Intergenerational Transmission of Poverty in the United States
In: Social science quarterly, Volume 76, Issue 1, p. 178-194
ISSN: 0038-4941
Investigates the extent to which poverty is passed from parents to children in the US. Transition matrices, constructed using 1968-1988 data from the Panel Study of Income Dynamics, show the probability of being poor, conditional on the poverty status of one's parents. Intergenerational immobility is measured using various coefficients of agreement. It is concluded that, under the economic conditions of the last two decades, children of poor parents have a 16%-28% probability of being poor adults. Had economic conditions not improved during the 1970s & 1980s, the probability of inheriting the poverty of one's parents would have been 32%-46%. About 50% of those who escape the poverty of their parents end up with a net family income less than twice the poverty line. Results adds weight to recent evidence that economic mobility in the US is less than had been previously thought, & cast doubt on the widely held belief that equality of opportunity is a characteristic of US society. 5 Tables, 23 References. Adapted from the source document.