Childhood Poverty and Lifelong Opportunity

October 22, 2013

www.cahs.org

• Poverty in Connecticut: where we stand.

• Why the numbers are misleading.

• Why concentrated poverty matters.

• Policies and practices to break the cycle.

Overview

• If we look at the Kids Count profile of the state, Connecticut looks good.

• Doing really well on health, pretty well on education.

• Well above average on Community and Economic well being.

Childhood poverty in Connecticut

Some more detail:

Some more detail:

• Why is this relevant when talking about opportunity?– States with high child poverty

have less social mobility. – By helping kids today, we

have a state that creates more opportunities for all.

Current poverty affects opportunity

An indicator to pay attention to:

Concentrated Poverty

Current poverty affects opportunity

• Where you grow up has a huge effect on social mobility

• “The Equality of Opportunity Project” – Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel Saez

• Social mobility varies hugely by metro area in the U.S.

Why is this relevant?

Social mobility, by metro area:

Why is this relevant?

Researchers found is that the characteristics of the place you live in affects mobility.

Why is this relevant?

Positive factors

• Social capital• Two-parent

households• Quality Schools

Negative factors

• Income inequality• Income segregation

by neighborhood:All else being equal, upward

mobility tended to be higher in metropolitan areas where poor families were more dispersed

among mixed-income neighborhoods.

Why is this relevant?

Barely any effect on social mobility

• High taxes on wealthy• Racial composition• Tax credits• Number of wealthy

people• Cost of higher education

• A deeper look at our data:“Opportunity in Connecticut: The impact of Race, Poverty and Education on Family Economic Success”• CT might have the schools and

social capital, but income segregation is very high.

What does this mean for Connecticut?

Not many poor, but very concentrated:

Concentrated Poverty in CT

Not many poor, but very concentrated:

Concentrated Poverty in CT

Concentrated Poverty in CT

Concentrated Poverty in CT

Hartford: an island of low opportunity surrounded by a sea of “progressive” communities.

• A bit out of scope of this presentation, but here is a hint…

Aside: how we concentrate poverty in CT?

• Important factor to consider:– A low income non-Hispanic

white in Hartford has very similar social mobility to a low income Latino or Black

– Same with affluent Hispanics/Blacks in the suburbs.

– The issue is people of color tend to be poor, and tend to be concentrated in low income areas.

Race and mobility

Concentrated poverty affects education…

Race and mobility

Connecticut New Haven Bridgeport Hartford Waterbury New Britain Stamford0%

10%

20%

30%

40%

50%

60%

70%

Connecticut Mastery TestAcademic Performance Test

Concentrated poverty affects education…

Race and mobility

Connecticut New Haven Bridgeport Hartford Waterbury New Britain Stamford0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

4-year graduation rate

This translate to skills gaps…

Race and mobility

Not just a city issue, though!

Race and mobility

That is: racial inequality affects education outcomes

Race and mobility

These outcomes extend to college…

Race and mobility

• And this translates to income, as well

Race and mobility

• And to assets:

Race and mobility

Source: Corporation for Enterprise Development, US Census Data

• Children who are poor at birth are three times less likely to complete high school.

• Girls born poor are three times more likely to have a child as a teen.

• Only 1/3 of persistently poor boys will have consistent employment as adults. Only ½ of girls.

Cumulative lack of opportunity

• “Scarcity” by Sendhil Mullainathan, a Harvard economist, and Eldar Shafir, a psychologist at Princeton.

• Why the poor are less future-oriented than those with more money?

• Scarcity — not of money, but of what the authors call bandwidth: the portion of our mental capacity that we can employ to make decisions.

Toxic stress and the cycle of scarcity

• Low income families are forced to take decisions under stress constantly.

• They do so in communities without many choices.

• Concentrated poverty becomes self-reinforcing.

Toxic stress and the cycle of scarcity

Connecticut is extremely unequal…

Reminder

2010Rank State

GiniCoefficien

t51 District of Columbia 0.532

50 New York 0.499

49 Connecticut 0.486

47 Louisiana 0.475

47 Massachusetts 0.475

46 Florida 0.474

45 Alabama 0.472

44 California 0.471

43 Texas 0.46940 Georgia 0.468

Ensuring Opportunity for All

What are the policy and program solutions?Place:• Urban agenda to attract

jobs, reform schools and taxes, and improve safety

• Build affordable housing in suburbs and market-rate housing in cities

Ensuring Opportunity for All

Education:• Quality, accessible early

education• K-12 reform: funding,

integration, leadership, teaching; grade-level reading and HS graduation

• Accessible, affordable post-secondary education

Ensuring Opportunity for All

Jobs, Income, and Wealth:• Make work pay with

minimum wage, EITC; build job base and skills training

• Facilitate access to SNAP, health and other benefits

• Provide financial education and coaching

Opportunity in Action

• Opportunities Hartford seeks “collective impact” to close opportunity gap; focus on jobs, education, income

• “Integrated service delivery” at DSS and nonprofits: jobs, benefits, financial education

• Result-Based Accountability: OUTCOMES

Conclusions

• Connecticut is small in scale, wealthy• State on right policy track on education, health; work to

do on jobs and place• All of us need to be engaged to create opportunity and

better outcomes for all