Poverty in Oklahoma Kate Richey Policy Analyst, Oklahoma Policy Institute

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1 Poverty in Oklahoma Kate Richey Policy Analyst, Oklahoma Policy Institute

2 I. Data on poverty in Oklahoma II. Is there a culture of poverty? Overview III. Structural barriers to escaping poverty IV. Poverty myths vs. facts

3 Poverty Source: U.S. Census Bureau American Community Survey 2010 Poverty: A family of four with an income of $22,050 is considered to be below the poverty level (HHS, 2010). 1 in 6 Oklahomans, or 16.9 percent, earn at or below the poverty level. Oklahoma has the 14 th highest poverty rate in the country

4 Poverty Rate, Oklahoma vs. U.S., Poverty Source: U.S. Census Bureau American Community Survey 2010 Oklahoma U.S. 15.9% 15.9% 16.2% 16.9% 15.3% 13.3% 13.2% 14.3%

5 Poverty Rate in Oklahoma, by sex, 2010 Poverty 18.3% Source: U.S. Census Bureau American Community Survey % Men Women

6 Poverty Rate in Oklahoma, by age, 2010 Child Poverty in Oklahoma 15.4% 24.5% Source: U.S. Census Bureau American Community Survey % 65 years and older 18 to 64 years Under 18 years (related children)

7 Poverty Rate in Oklahoma, by race/ethnicity, 2010 Poverty Source: U.S. Census Bureau American Community Survey 2010 Asian, 1.6% Native American, 10.2% Two or more, 10.2% Other, 4.9% White, 60.8% African- American, 12.3%

8 Poverty Rate in Oklahoma, by race/ethnicity, 2010 Poverty Source: U.S. Census Bureau American Community Survey % 15.5% 24.8% 29.8% 30.1% White Asian Native American Hispanic/ Latino African- American

9 Poverty Rate in Oklahoma, by educational attainment, 2010 (Population 25yrs and older) Poverty 25.4% Source: U.S. Census Bureau American Community Survey % 10.8% 3.8% Less than high school graduate High school graduate (includes equivalency) Some college, associate's degree Bachelor's degree or higher

10 Oklahoma has the 8 th lowest median family income for families with children, $46,200 (KIDS Count, 2010). Children and Families in Poverty in Oklahoma Families with children, especially young children, are likeliest to live in poverty. Oklahoma families headed by single mothers are four and a half times more likely to live in poverty than families headed by married couples (ACS 2010).

11 Children and Families in Poverty in Oklahoma Source: KIDS Count 2010 Annie E. Casey Foundation About 1 in 10, or 11 percent, of children live in extreme poverty, with income at or below $11,025 for a family of four. About 1 in 3 children, or 32 percent, live in families where neither parent has full-time, year-round employment. Nearly 1 in 3 children, or 27.1 percent, live in low-income houesholds where housing costs exceed 30 percent of their income.

12 The Safety Net for Children Over a quarter (28.4 percent) of Oklahoma s children are on food stamps (USDA, 2011). Over half (53.2 percent) of the state s children are insured through Oklahoman s Medicaid program, SoonerCare. (OHCA 2012).

13 Culture of Poverty? Are there common behaviors and beliefs that are characteristic of people living in poverty?

14 Culture of Poverty? Lewis coined the term culture of poverty in The Children of Sanchez (1961) Ethnographic studies of small Mexican communities Premise: people in poverty share a consistent and observable culture Popular revivial of the concept in Payne s A Framework for Understanding Poverty (1995) Premise: children in poverty have a different culture that affects learning

15 Culture of Poverty? A flood of research has concluded: There is no such thing as a common culture of poverty Differences in culture among people with low-incomes are just as great as differences between classes of people (see Billings, 1974; Abell & Lyon, 1979; Rodman, 1977; Carmon, 1985; Jones & Luo, 1999; Ortiz & Briggs, 2003) Such a view obscures systemic and structural factors that perpetuate economic inequality Low-incomes may generate observable behavioral patterns Not culturally transmitted, but a product of rational, selfinterested decision-making or of structural inequalities imposed from the outside

16 Structural Barriers to Escaping Poverty Unemployment Underemployment Low wage jobs Employment discrimination Long-term unemployed People of color

17 Structural Barriers to Escaping Poverty Barriers to educational attainment Underperforming/underfunded schools Students in families earning low-incomes more likely to attend schoools with less funding (Carey, 2005); lower teacher salaries (Karoly, 2001); less computer/internet access (Gorski, 2003); higher student/teacher ratios; less experienced teacher (Barton, 2004); less rigorous curriculum More likely to attend schools with infestations; inoperative bathrooms/equipment; teacher vacancies/substitutes; outdated classroom materials; outdated or nonexistent learning centers, i.e. science labs (The National Commission on Teaching and America's Future 2004) Less support for higher education

18 Structural Barriers to Escaping Poverty Few assets and limited access to assetbuilding opportunities Higher liklihood of asset-stripping predatory lending, incarceration

19 Popular Poverty Myths Unmotivated/lazy 43.5 percent of people in poverty in Oklahoma were employed in 2010 o Many work more than 1 job 56.6 percent did not work o Inability to secure a living wage, disability/ health, single parent, high regional unemployment

20 Popular Poverty Myths Less involved in children s education Low-income parents hold the same attitudes about education as others (Compton-Lilly, 2003; Lareau & Horvat, 1999; Leichter, 1978) May work multiple jobs, evenings, no paid leave, affordability of child care, transportation

21 Popular Poverty Myths More likely to use/abuse drugs/alcohol No conclusive empirical evidence

22 Behavioral aspects of poverty Constrained choices i.e., Payday Loans & Highinterest credit Mediated by gender Mediated by race The cliff effect

23 The cliff effect A benefit cliff occurs when a small increase in income leads to the complete termination of a benefit The result is that parents can work and earn more, but their families end up worse off than they were before

24 Questions? Kate Richey Policy Analyst, Oklahoma Policy Institute

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