Lecture 6-8

Question 1

What is Human Capital?

Answer 1

The skills, education, health, and training of individuals.

Question 2

What is Human Capital theory?

Answer 2

It is believed that increasing human capital increases productivity in the labor market and thus increases earnings.

Question 3

What is the “cycle of poverty” ideology?

Answer 3

“The poor were poor because they perpetually misbehaved.”

Question 4

What did Gilder suggest?

Answer 4

The only dependable route from poverty is always work, family and faith.

Question 5

What did Gilder emphasize about family structure?

Answer 5

He felt that we needed to discipline the male sex drive to cause men to amend their behavior to become “future-oriented” through a desire to support their children.

Question 6

Who emphasized the sociological view of poverty?

Answer 6

William Julius Wilson.

Question 7

What was the sociological view first concerned with?

Answer 7

Concerned with explaining the run-up in extreme poverty in black urban centers, by looking at multiple historical, demographic and labor market factor to understand the deepening disadvantage

Question 8

What did the sociological view focus on? (2)

Answer 8

1. The role of neighborhoods, community, “norms” 2. The sociological work that undergirds modern poverty research.

Question 9

What does sociological research pay a lot of attention on? (4)

Answer 9

It pays a lot of attention to 1. The role family structure. 2. Non-marital childbearing. 3. Debate about changing norms in neighborhoods of concentrated poverty. 4. Culture

Question 10

What is an example of a defined benefit?

Answer 10

Social Security.

Question 11

What Hacker find out about earnings?

Answer 11

That Americans experience far more income volatility over the life course now than 30 years ago.

Question 12

What is a Relative Poverty Measure?

Answer 12

Standing relative to some central tendency (for ex., 50% of median national income).

Question 13

What is an Absolute Poverty Measure?

Answer 13

Measure calculated based on assumptions of costs for purchasing bundle of goods considered “necessary.”

Question 14

What is an example of an absolute poverty measure?

Answer 14

The U.S. Federal Poverty Threshold.

Question 15

What are the advantages of an absolute poverty measure? (2)

Answer 15

1. Easy to measure. 2. Easy to see trends.

Question 16

What are the advantages of a relative poverty measure? (2)

Answer 16

1. Reflects that individuals live in social contexts (inequality; social distance; social inclusion). 2. Allows for direct international comparison.

Question 17

What are the disadvantages of an absolute poverty measure? (3)

Answer 17

1. Doesn’t include in-kind benefits. 2. Which income do you count? 3. What about changing standard of living?

Question 18

What are the disadvantages of a relative poverty measure? (2)

Answer 18

1. Can never “end” poverty. 2. No sense of need.

Question 19

What are the two slightly different versions of the federal poverty measure?

Answer 19

1. Poverty thresholds. 2. Poverty guidelines.

Question 20

How were the poverty thresholds originally developed? By whom?

Answer 20

1. Based on the economy food plan. 2. Developed by Mollie Orshansky.

Question 21

Do poverty thresholds change by geographic region?

Answer 21

No.

Question 22

Do poverty thresholds change by family size

Answer 22

Yes.

Question 23

Are poverty thresholds adjusted for inflation?

Answer 23

Yes.

Question 24

What are poverty thresholds used for?

Answer 24

Mainly statistical purposes. For ex., preparing estimates of the number of Americans in poverty each year and all official poverty population figures are calculated using the poverty thresholds.

Question 25

What are poverty guidelines used for?

Answer 25

To determine program eligibility.