Which New Yorkers Are Left Behind By Benefit Programs?Should poverty alleviating benefits be expanded for dependent-less heads of households?

Geoffery Mullings - April 2016

Do Only Tax Filers With Dependents Need Poverty-Alleviating Help?

• 1 in 5 New York City Households live in poverty

• But nearly 1 in 4 New Yorkers live in poor households

• At least 60% of those poor residents are still below the poverty line after receiving benefits.

*Chronically Poor/Stuck In Poverty: Remaining below the NYC Center For Economic Opportunity Poverty Threshold even after accounting for public benefits.

Do Only Tax Filers With Dependents Need Poverty-Alleviating Help?

• Evidence suggests that a disproportionate segment of the deeply poverty-stricken may be heads of households without dependents.

Potential Causes Of Sticky Poverty Floors• High expenses (especially out of pocket Medical Expenses)

Case Study: Crushing MOOP Expenses• Medical Out Of Pocket

(MOOP) expenses sunk respondent 1537’s balance sheet.

• $14k income became nearly a net -$100k.

• Received hardly $4,500 in benefits.

• Without MOOP considered, the household was above the official poverty line.

Potential Causes Of Sticky Poverty Floors• High expenses (especially out of pocket Medical Expenses)

• Low pre-tax incomes ($6357 for the stuck poor vs. $12065 for the general poor on average).

• Low benefit amounts ($1980 vs. $4794 on average)• Potentially related to household composition.

Fewer Dependents Means Less Assistance

Almost a 1 to 1 ratio of children to heads of households in the subset of New Yorkers raised above poverty.

Demographics of Those Stuck In PovertyWhere do they live?

Demographics of Those Stuck In PovertyDisproportionately Non-Citizens.

Many Renters.

Phenomenal Findings When Comparing Those Stuck In Poverty To All Poor New

YorkersCompared to all respondents: Educational attainment of the chronically poor significantly drops after HS.

Educational Attainment

Compared to poor respondents: Educational attainment significantly increases beyond HS.

Phenomenal Findings When Comparing Those Stuck In Poverty To All Poor New

YorkersCompared to all respondents: The chronically poor are disproportionately Black and Latino.

Ethnic Backgrounds

Compared to poor respondents: The chronically poor are disproportionately Asian and White, and less likely to be Latino.

Do Only Tax Filers With Dependents Need Poverty-Alleviating Help?

This analysis would suggest no, even those without dependents appear to need help, but there are further questions to consider:

• What is poverty? Can it only be evaluated financially? Or do geographic and social resources matter?

• Are the chronically poor stuck, or are they really in a temporary trough on their way to a socioeconomic crest? Or both?

• If some of the chronically poor hold higher degrees, does the quality of resources matter as well?

Money May Be A Problem, But More Money May Not Be The Answer

Further longitudinal research is necessary to determine:

1.What happens to those identified as unassisted by benefits?

2.How long do they remain in poverty?

3.Where are they typically earning their educational credentials?

4.Is this a trend or related to economic conditions ie: The Great Recession.

Which New Yorkers Are Left Behind By Benefit Programs?Should poverty alleviating benefits be expanded for dependent-less heads of households?

Geoffery MullingsApril 2016Email: GeoffMullings@gmail.com