IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v18y2000i4p415-427.html
   My bibliography  Save this article

Has Macroeconomic Performance Regained Its Antipoverty Bite?

Author

Listed:
  • R HAVEMAN
  • J SCHWABISH

Abstract

From the mid‐1980s to the early 1990s, several important studies examined the statistical relationship between the U.S. official poverty rate and overall economic performance. Most of these studies focused on the apparent break in this relationship beginning in the late 1970s or early 1980s. In this article, we present the results of our study of the relationship between macroeconomic performance and the poverty rate, using annual time‐series data on macroeconomic variables, such as the unemployment rate and per‐capita GDP growth from 1959 through 1998. Like these earlier studies, we also find that economic performance had a smaller antipoverty effect during the 1970s and 1980s than it did in earlier years. However, our estimates suggest that the weakened economic growth‐poverty relationship may have been an aberration of this period and that the expected relationship of the 1960s has again been reestablished in the 1990s. This is true even after accounting for changes in earnings inequality over the entire period.

Suggested Citation

  • R Haveman & J Schwabish, 2000. "Has Macroeconomic Performance Regained Its Antipoverty Bite?," Contemporary Economic Policy, Western Economic Association International, vol. 18(4), pages 415-427, October.
    • Handle: RePEc:bla:coecpo:v:18:y:2000:i:4:p:415-427
    DOI: 10.1111/j.1465-7287.2000.tb00038.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.2000.tb00038.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.2000.tb00038.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David M. Cutler & Lawrence F. Katz, 1991. "Macroeconomic Performance and the Disadvantaged," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 1-74.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Donald G. Freeman, 2003. "Trickling Down the Rising Tide: New Estimates of the Link between Poverty and the Macroeconomy," Southern Economic Journal, John Wiley & Sons, vol. 70(2), pages 359-373, October.
    2. Donald G. Freeman, 2003. "Trickling Down the Rising Tide: New Estimates of the Link between Poverty and the Macroeconomy," Southern Economic Journal, John Wiley & Sons, vol. 70(2), pages 359-373, October.
    3. Shatakshee Dhongde & Robert Haveman, 2017. "Multi-Dimensional Deprivation in the U.S," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 477-500, September.
    4. Craig Gundersen & James Ziliak, 2004. "Poverty and macroeconomic performance across space, race, and family structure," Demography, Springer;Population Association of America (PAA), vol. 41(1), pages 61-86, February.
    5. Luis Ayala & Olga Cantó & Juan G. Rodríguez, 2011. "Poverty and the business cycle: The role of the intra-household distribution of unemployment," Working Papers 222, ECINEQ, Society for the Study of Economic Inequality.
    6. Brian Goesling & Hande Inanc & Angela Rachidi, "undated". "Success Sequence: A Synthesis of the Literature," Mathematica Policy Research Reports 726444f0055c41fca02d9cf39, Mathematica Policy Research.
    7. Ross Gittell & Edinaldo Tebaldi, 2007. "Did a Strong Economy in the 1990s Affect Poverty in U.S. Metro Areas? Exploring Changes in Poverty in Metropolitan Areas Over the Last U.S. Business Cycle, 1992-2003," Economic Development Quarterly, , vol. 21(4), pages 354-368, November.
    8. Tindara Addabbo & Rosa García-Fernández & Carmen Llorca-Rodríguez & Anna Maccagnan, 2013. "The effect of the crisis on material deprivation in Italy and Spain," Department of Economics (DEMB) 0019, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    9. repec:pri:crcwel:wp11-08-ff is not listed on IDEAS
    10. Hanson, Kenneth & Hamrick, Karen S., 2004. "Moving Public Assistance Recipients Into The Labor Force, 1996-2000," Food Assistance and Nutrition Research Reports 33839, United States Department of Agriculture, Economic Research Service.
    11. Bruce D. Meyer & James X. Sullivan, 2011. "Consumption and Income Poverty Over the Business Cycle," Research in Labor Economics, in: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, pages 51-82, Emerald Group Publishing Limited.
    12. Donald G. Freeman, 2003. "Trickling Down the Rising Tide: New Estimates of the Link between Poverty and the Macroeconomy," Southern Economic Journal, Southern Economic Association, vol. 70(2), pages 359-373, October.
    13. Steven Shulman, 2001. "Family structure and the afro-euro poverty gap: When employment policies aren't enough," The Review of Black Political Economy, Springer;National Economic Association, vol. 29(2), pages 47-66, December.
    14. Berthold, Norbert & Brunner, Alexander & Zenzen, Jupp, 2010. "Makroökonomische Rahmenbedingungen und die Einkommensverteilung: Welchen Einfluss hat die Finanzkrise?," Discussion Paper Series 108, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    15. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia.
    16. Luis Ayala & Olga Cantó & Juan G. Rodríguez, 2017. "Poverty and the business cycle: A regional panel data analysis for Spain using alternative measures of unemployment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 47-73, March.
    17. Donald G. Freeman, 2003. "Poverty and the Macroeconomy: Estimates from U.S. Regional Data," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 358-371, July.
    18. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G. & Jackson, Randall W., 2004. "The Role Of Small Business In Economic Growth And Poverty Alleviation In West Virginia: An Empirical Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20290, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Carlos Gradín & Olga Cantó & Coral Río, 2017. "Measuring employment deprivation in the EU using a household-level index," Review of Economics of the Household, Springer, vol. 15(2), pages 639-667, June.
    20. Natasha V. Pilkauskas & Janet Currie & Irwin Garfinkel, 2011. "The Great Recession and Material Hardship," Working Papers 1312, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    21. Abd Azis Muthalib & Pasrun Adam & Rostin Rostin & Zainuddin Saenong & La Ode Suriadi, 2018. "The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 37-42.
    22. Francisco Parro G. & Loreto Reyes R., 2019. "Economic growth and the Chilean labor market," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 22(2), pages 070-095, August.
    23. Carlos Gradin & Olga Canto & Coral del Rio, 2012. "Measuring employment deprivation among households in the EU," Working Papers 247, ECINEQ, Society for the Study of Economic Inequality.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Attanasio, Orazio & Davis, Steven J, 1996. "Relative Wage Movements and the Distribution of Consumption," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1227-1262, December.
    2. Bruce D. Meyer & James X. Sullivan, 2011. "Consumption and Income Poverty Over the Business Cycle," Research in Labor Economics, in: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, pages 51-82, Emerald Group Publishing Limited.
    3. Bruce D. Meyer & James X. Sullivan, 2012. "Identifying the Disadvantaged: Official Poverty, Consumption Poverty, and the New Supplemental Poverty Measure," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 111-136, Summer.
    4. Marianne Bitler & Hilary Hoynes & Elira Kuka, 2017. "Child Poverty, the Great Recession, and the Social Safety Net in the United States," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(2), pages 358-389, March.
    5. Dirk Krueger & Fabrizio Perri, 2004. "On the Welfare Consequences of the Increase in Inequality in the United States," NBER Chapters, in: NBER Macroeconomics Annual 2003, Volume 18, pages 83-138, National Bureau of Economic Research, Inc.
    6. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Differences in Metropolitan and Nonmetropolitan U.S. Family Income Inequality: A Cross-County Comparison," Journal of Urban Economics, Elsevier, vol. 44(2), pages 272-290, September.
    7. Marta de la Cuesta-González & Cristina Ruza & José M. Rodríguez-Fernández, 2020. "Rethinking the Income Inequality and Financial Development Nexus. A Study of Nine OECD Countries," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    8. Maura P. Doyle, 1997. "The effects of interest rates and taxes on new car prices," Finance and Economics Discussion Series 1997-38, Board of Governors of the Federal Reserve System (U.S.).
    9. David E. Altig, 1992. "An ebbing tide lowers all boats: monetary policy, inflation, and social justice," Economic Review, Federal Reserve Bank of Cleveland, vol. 28(Q II), pages 14-22.
    10. Jonathan Fisher & Bradley L. Hardy, 2023. "Money matters: consumption variability across the income distribution," Fiscal Studies, John Wiley & Sons, vol. 44(3), pages 275-298, September.
    11. Note: For best results & the figures should be printed on a non-Postscript printer. Hoynes & H., "undated". "The Employment, Earnings, and Income of Less-Skilled Workers over the Business Cycle," Institute for Research on Poverty Discussion Papers 1199-99, University of Wisconsin Institute for Research on Poverty.
    12. Nabamita Dutta & Deepraj Mukherjee, 2018. "Can financial development enhance transparency?," Economic Change and Restructuring, Springer, vol. 51(4), pages 279-302, November.
    13. Austan Goolsbee, 1998. "It's Not About the Money: Why Natural Experiments Don't Work on the Rich," NBER Working Papers 6395, National Bureau of Economic Research, Inc.
    14. Marianne Bitler & Hilary Hoynes, 2016. "The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 403-444.
    15. Lídia Farré & Francis Vella, 2008. "Macroeconomic Conditions and the Distribution of Income in Spain," LABOUR, CEIS, vol. 22(3), pages 383-410, September.
    16. Sharpe, Andrew & Zyblock, Myles, 1997. "Macroeconomic performance and income distribution in Canada," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 167-199.
    17. Jamie S. Partridge & Mark D. Partridge & Dan S. Rickman, 1998. "State Patterns In Family Income Inequality," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 277-294, July.
    18. Marianne Bitler & Hilary Hoynes, 2015. "Heterogeneity in the Impact of Economic Cycles and the Great Recession: Effects within and across the Income Distribution," American Economic Review, American Economic Association, vol. 105(5), pages 154-160, May.
    19. Gilbert E. Metcalf, 1994. "Life Cycle versus Annual Perspectives on the Incidence of a Value Added Tax," NBER Chapters, in: Tax Policy and the Economy, Volume 8, pages 45-64, National Bureau of Economic Research, Inc.
    20. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," NBER Working Papers 12159, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:18:y:2000:i:4:p:415-427. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.