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THREE LENSES ON
POVERTY
Jobs, Education, Healthcare
& the Distribution of Opportunity
In the state of Virginia
y = -36.4ln(x) + 333.9
R² = 0.270
-80.00
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
80.00
$0 $5,000 $10,000 $15,000 $20,000
Grwothofmedianincome
1969-1979
1969 Median Income
Median incomes between all
localities converged somewhat
during the 1970's
y = 0.000x - 18.13
R² = 0.210
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
20
0 20000 40000 60000 80000 100000 120000
GrowthofRealMedianIncome2000-2010
Median Income 2000
and then diverged again
Poverty rates in Virginia localities closely correlate over
time, and poverty has increased in most.
y = 1.248x
R² = 0.932
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0 5.0 10.0 15.0 20.0 25.0
Areapovertyratein2003
Area poverty rate in 2011
So where does this leave Roanoke?
• Roanoke’s median income is expressed here in constant 2011
dollars.
35000
36000
37000
38000
39000
40000
41000
42000
43000
44000
45000
1969 CONST 1979 CONST 1989 CONST 2000 CONST 2011 CONST
Roanoke's real median income declined during the 70's and
again over the past decade.
Poverty is a product.
Impoverishment is a process.
The Area’s occupation & job mix is decidedly
tilted toward lower average wages
14%
average
less than
$10/hr
20 %
average
$10.01-
$13/hr
12 %
average
$13.01-
$15/hr
54 %
average
more than
$15.01 + /
hr
Average earnings in Roanoke MSA job
mix 2012: out of 147,800 jobs ...
12.4%
average less
than $10/ hr
15%
average
$10.01-$13 /
hr
13%
average
$13.01-$15 /
hr
59.6%
average
more than
$15.01 /hr
Average earnings in Roanoke MSA job mix
2003: out of 136,1910 jobs (in 2012$) ...
Roanoke lags the state in educational attainment.
no diploma
12%
diploma
26%
Some
college/Assoc
-iates
[PERCENTAG
E]
Bachelor's+
35%
Virginia Educational Attainment 2011
persons 25 years and older
no diploma
18%
diploma
30%
Some
collage/Assoc
-iates
[PERCENTAG
E]
Bachelor's+
22%
Roanoke Educational Attainment
2011 persons 25 years and older
The cost of health insurance
$11,194
29%
$27,263
71%
2003:
Average Family Health Insurance Cost of $11,194
is 29%
of Roanoke's Median Income of
$38,458 (2011$)
$14,822,
39%
$23,660
61%
2011:
Average Family Health Insurance Cost of $14,822
is 39%
of Roanoke's Median Income of
$38,482
Living Wages?
“The second line on the sample budget leaves room for income from a
second job, which many called an admission by the fast food giant that its
workers can't live on its wages alone.” – CNN Money
Education reflects in earnings…
20,913
27,905
32,060
40,049
51,219
17,221
21,520
33,036
42,325
52,045
No Diploma Diploma/GED only Some college/Associates Bachelor's Graduate Degree
Real median earnings have fallen for those with only a diploma or less
in Roanoke since 2005 (2011$)
Median Earnings in Roanoke 2005 (2011$) Median Earnings in Roanoke 2011
- 17.6 %
decrease
- 22.9%
decrease
3 %
increase
5.7 %
increase
1.6 %
increase
A locality’s income
correlates more
NEGATIVELY with the proportion of adults without a high school diploma
than it does
POSITIVELY with the proportion of adults with at least a Bachelor’s degree.
y = -33690ln(x) + 145308
R² = 0.6292
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
0.0 10.0 20.0 30.0 40.0
MedianIncome2011
Percent of adults without a high-school
diploma 2011
y = 1068.4x + 25201
R² = 0.5544
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
0.0 20.0 40.0 60.0 80.0
medianincome2011
Percent of adults with at least a Bachelor’s
degree 2011
White mobility
out of poverty
Rate
African-American
mobility out of
poverty rate
High
School
Diploma
Bachelor’s
Degree
Mobility Rates equalize
between races with
Bachelor’s Degree
Head Start effect: High-
quality early childhood
education improves chances of
on time 3rd Grade
achievement and thus
finishing High School
Project Discovery
effect: improves
chances of achieving
Bachelor’s
Mobility
rate
Child’s adult level
of education
On-Time
Third Grade
achievement
Roanoke’s income structure is polarizing.
y = - 0.213x
R² = 0.986
-20
0
20
40
60
80
100
120
0 20 40 60 80 100 120
PorportionofIncome
Proportion of Population by Quintiles
Income Polarization in Roanoke
2011 Quinitle Distribution
Roanoke’s GINI
coefficient is .45
which is 12% above
the national average
and the same
as
Mexico’s
• In Roanoke, the poorest 20% of the
population make 3.36% of Roanoke’s
total income. The richest five percent
accounts for 22.32% of its total
residential income.
Position in the
Distribution
Average Income
Lowest Quintile $ 8,641
Second Quintile $24,020
Third Quintile $38,641
Fourth Quintile $58,834
Highest
Quintile
$127,222
Top 5 Percent $229,738
Education Defeats Poverty & Promotes Racial Equity
Head Start & Project Discovery
help ALL CHILDREN increase their chances of
Escaping Intergenerational Poverty

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Three Lenses on Poverty - Robert Humphries & Aaron Fallon (TAP)

  • 1. THREE LENSES ON POVERTY Jobs, Education, Healthcare & the Distribution of Opportunity
  • 2. In the state of Virginia y = -36.4ln(x) + 333.9 R² = 0.270 -80.00 -60.00 -40.00 -20.00 0.00 20.00 40.00 60.00 80.00 $0 $5,000 $10,000 $15,000 $20,000 Grwothofmedianincome 1969-1979 1969 Median Income Median incomes between all localities converged somewhat during the 1970's y = 0.000x - 18.13 R² = 0.210 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 0 20000 40000 60000 80000 100000 120000 GrowthofRealMedianIncome2000-2010 Median Income 2000 and then diverged again
  • 3. Poverty rates in Virginia localities closely correlate over time, and poverty has increased in most. y = 1.248x R² = 0.932 0.0 5.0 10.0 15.0 20.0 25.0 30.0 0.0 5.0 10.0 15.0 20.0 25.0 Areapovertyratein2003 Area poverty rate in 2011
  • 4. So where does this leave Roanoke? • Roanoke’s median income is expressed here in constant 2011 dollars. 35000 36000 37000 38000 39000 40000 41000 42000 43000 44000 45000 1969 CONST 1979 CONST 1989 CONST 2000 CONST 2011 CONST Roanoke's real median income declined during the 70's and again over the past decade.
  • 5. Poverty is a product. Impoverishment is a process.
  • 6. The Area’s occupation & job mix is decidedly tilted toward lower average wages 14% average less than $10/hr 20 % average $10.01- $13/hr 12 % average $13.01- $15/hr 54 % average more than $15.01 + / hr Average earnings in Roanoke MSA job mix 2012: out of 147,800 jobs ... 12.4% average less than $10/ hr 15% average $10.01-$13 / hr 13% average $13.01-$15 / hr 59.6% average more than $15.01 /hr Average earnings in Roanoke MSA job mix 2003: out of 136,1910 jobs (in 2012$) ...
  • 7. Roanoke lags the state in educational attainment. no diploma 12% diploma 26% Some college/Assoc -iates [PERCENTAG E] Bachelor's+ 35% Virginia Educational Attainment 2011 persons 25 years and older no diploma 18% diploma 30% Some collage/Assoc -iates [PERCENTAG E] Bachelor's+ 22% Roanoke Educational Attainment 2011 persons 25 years and older
  • 8. The cost of health insurance $11,194 29% $27,263 71% 2003: Average Family Health Insurance Cost of $11,194 is 29% of Roanoke's Median Income of $38,458 (2011$) $14,822, 39% $23,660 61% 2011: Average Family Health Insurance Cost of $14,822 is 39% of Roanoke's Median Income of $38,482
  • 9. Living Wages? “The second line on the sample budget leaves room for income from a second job, which many called an admission by the fast food giant that its workers can't live on its wages alone.” – CNN Money
  • 10. Education reflects in earnings… 20,913 27,905 32,060 40,049 51,219 17,221 21,520 33,036 42,325 52,045 No Diploma Diploma/GED only Some college/Associates Bachelor's Graduate Degree Real median earnings have fallen for those with only a diploma or less in Roanoke since 2005 (2011$) Median Earnings in Roanoke 2005 (2011$) Median Earnings in Roanoke 2011 - 17.6 % decrease - 22.9% decrease 3 % increase 5.7 % increase 1.6 % increase
  • 11. A locality’s income correlates more NEGATIVELY with the proportion of adults without a high school diploma than it does POSITIVELY with the proportion of adults with at least a Bachelor’s degree. y = -33690ln(x) + 145308 R² = 0.6292 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 0.0 10.0 20.0 30.0 40.0 MedianIncome2011 Percent of adults without a high-school diploma 2011 y = 1068.4x + 25201 R² = 0.5544 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 0.0 20.0 40.0 60.0 80.0 medianincome2011 Percent of adults with at least a Bachelor’s degree 2011
  • 12. White mobility out of poverty Rate African-American mobility out of poverty rate High School Diploma Bachelor’s Degree Mobility Rates equalize between races with Bachelor’s Degree Head Start effect: High- quality early childhood education improves chances of on time 3rd Grade achievement and thus finishing High School Project Discovery effect: improves chances of achieving Bachelor’s Mobility rate Child’s adult level of education On-Time Third Grade achievement
  • 13. Roanoke’s income structure is polarizing. y = - 0.213x R² = 0.986 -20 0 20 40 60 80 100 120 0 20 40 60 80 100 120 PorportionofIncome Proportion of Population by Quintiles Income Polarization in Roanoke 2011 Quinitle Distribution Roanoke’s GINI coefficient is .45 which is 12% above the national average and the same as Mexico’s • In Roanoke, the poorest 20% of the population make 3.36% of Roanoke’s total income. The richest five percent accounts for 22.32% of its total residential income. Position in the Distribution Average Income Lowest Quintile $ 8,641 Second Quintile $24,020 Third Quintile $38,641 Fourth Quintile $58,834 Highest Quintile $127,222 Top 5 Percent $229,738
  • 14. Education Defeats Poverty & Promotes Racial Equity Head Start & Project Discovery help ALL CHILDREN increase their chances of Escaping Intergenerational Poverty