The Poverty and Income Gap and Why Fixing It Matters for Texas

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1 The Poverty and Income Gap and Why Fixing It Matters for Texas Michael E. Cline, PhD Associate Director, Hobby Center for the Study of Texas Rice University Presented at the Texas Conservative Black Leaders Summit September 20, 2014 Clear Lake, TX

2 What is Poverty? Persons or Households Who Do Not Have Enough Income to Meet Basic Daily Needs (Food, Shelter, Clothing, Transportation, and Utilities) Poverty Ratio: Percent of population (or families or households) that have income below a given poverty threshold Relative (such as persons below 50% of a country s median income) Absolute (based on level of income or resources) Extreme Poverty: below 50% of poverty threshold (Annie E. Casey Foundation)

3 Poverty Thresholds for 2013 by Size of Family and Number of Related Children Under 18 Years (Office of Management and Budget Official Poverty Measure) Size of family unit Weighted average thresholds Related children under 18 years None One Two Three Four Five Six Seven Eight or more One person (unrelated individual)... 11,888 Under 65 years... 12,119 12, years and over... 11,173 11,173 Two people... 15,142 Householder under 65 years... 15,679 15,600 16,057 Householder 65 years and over... 14,095 14,081 15,996 Three people... 18,552 18,222 18,751 18,769 Four people... 23,834 24,028 24,421 23,624 23,707 Five people... 28,265 28,977 29,398 28,498 27,801 27,376 Six people... 31,925 33,329 33,461 32,771 32,110 31,128 30,545 Seven people... 36,384 38,349 38,588 37,763 37,187 36,115 34,865 33,493 Eight people... 40,484 42,890 43,269 42,490 41,807 40,839 39,610 38,331 38,006 Nine people or more... 48,065 51,594 51,844 51,154 50,575 49,625 48,317 47,134 46,842 45,037 Source: U.S. Census Bureau. Average Family Size for African-Americans in Texas: 3.27 Assume 3 Person Family Including 2 children: Poverty < $18,769 Extreme Poverty < $11,812 Estimated earnings for Full Time Employee on Minimum Wage ($7.25 hr): $15,080

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7 25.0% Poverty Rates by Selected Geographic Areas and by Year, % 23.8% 23.5% 22.4% 20.0% 15.0% 19.6% 16.0% 15.4% 13.7% 20.6% 17.2% 15.3% 18.7% 17.9% 16.5% 19.6% 18.5% 17.4% 18.8% 18.5% 17.9% 17.5% 16.4% 16.4% 10.0% Texas Harris County Houston Houston MSA Number of People in Poverty in 2013: Texas: 4.5 million Houston MSA: 1.0 million Harris County: 792,000 City of Houston: 485, % 0.0%

8 Poverty Poverty Rate: Percent of Persons (of Families or Households) below the Poverty Income Threshold Estimate of the number of people (families, households) in poverty at a given time Poverty spell: number of months in poverty People can fall into poverty temporarily (loss of job, health crises, etc.) Chronically poor: those who remain in poverty for more than a few months (a year or more)

9 55 Percent of the United States Population in Poverty in 2005 and 2011 by Race/Ethnicity NH White Black Asian Hispanic All People Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

10 Percent of the United States Population in Poverty for Two or More Consecutive Months During the Period and by Race/Ethnicity NH White Black Asian Hispanic All People Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

11 12.0 Percent of the United States Population in Poverty for All Months During the Period and by Race/Ethnicity NH White Black Asian Hispanic All People Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

12 55 Percent of the United States Population in Poverty in 2005 and 2011 by Age Under 18 years 18 to 64 years 65 years and over Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

13 55.0 Percent of the United States Population in Poverty for Two or More Consecutive Months During the Periods and by Age Under 18 years 18 to 64 years 65 years and over Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

14 12.0 Percent of the United States Population in Population in Poverty During All Months in the Period and by Age Under 18 years 18 to 64 years 65 years and over Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

15 55.00 Percent of the United States Population Age 18 and Older in Poverty in 2005 and 2011 by Educational Attainment Less than 4 years of high school High school graduate, no college One of more years of college Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

16 Percent of the United States Population Age 18 and Older in Poverty for Two or More Consecutive Months in and by Educational Attainment Less than 4 years of high school High school graduate, no college One of more years of college Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

17 12.0 Percent of the United States Population Age 18 and Older in Poverty All Months in the Period and by Educational Attainment Less than 4 years of high school High school graduate, no college One of more years of college Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

18 55 Percent of the United States Population in Poverty in 2005 and 2011 by Family Type In married-couple families In families with a female householder, no husband present In families with a male householder, no wife present Unrelated individuals Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

19 Percent of the United States Population in Poverty for Two or More Consecutive Months in and by Family Type In married-couple families In families with a female householder, no husband present In families with a male householder, no wife present Unrelated individuals Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

20 12.0 Percent of the United States Population in Poverty All Months in the Period and by Family Type In married-couple families In families with a female householder, no husband present In families with a male householder, no wife present Unrelated individuals Source: U.S. Census Bureau, Survey of Income and Program Participation, 2004 and 2008 Panels. September 19,

21 Percent of the Population in Poverty by Selected Characteristics for Texas, The City of Houston, and the Houston-The Woodlands-Sugar Land MSA, 2013 Houston-The Woodlands- Characteristic Texas City of Houston Sugar Land MSA NH White 9.4% 9.5% 7.2% Black 24.5% 28.0% 23.0% Asian 10.8% 16.7% 9.6% Hispanic 25.5% 28.2% 24.6% Married Couple Families 10.0% 14.4% 9.4% Single Female Headed Families 35.6% 41.2% 35.0% Under % 34.7% 23.7% 18 to % 18.9% 14.2% 65 And Older 11.0% 14.1% 10.0% Educational Attainment of Persons 25 Years and Older Less than High School 29.1% 29.8% 27.7% High School 15.2% 22.0% 15.9% Some College or Associates 10.2% 14.6% 9.8% Bachelor's 4.4% 5.8% 4.0% Source: U.S. Census Bureau, American Community Survey, September 19,

22 Family Households with Related Children Under Age 18 by Family Type and Race/Ethnicity in Texas, 2010 Married Couple Male Householder Female Householder Total Family Households with Children < 18 Number NH White 1,027,590 98, ,150 1,391,681 Hispanic 945, , ,232 1,432,226 Black* 183,621 37, , ,347 Percent NH White 73.8% 7.1% 19.1% 100.0% Hispanic 66.0% 9.0% 25.0% 100.0% Black* 42.0% 8.5% 49.5% 100.0% *Includes persons of Hispanic origin who identify as Black or African American. Source: U.S. Census Bureau, Census 2010, Summary File 1. See: Summary Profile 1 for Other Geographies 26

23 THE CHALLENGE September 19,

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25 Median Household Income, Family Income, and Per Capita Income by Race/Ethnicity for Texas, 2010 Source: U.S. Census Bureau, American Community Survey,

26 Education Pays Unemployment Rate Median Weekly Earnings Overall Unemployment Rate: 7.6% Median: $827 Source: U.S. Department of Labor, Bureau of Labor Statistics, June 2013/first quarter

27 Percent of the Population Age 25 and Older in the United States and Texas with Less Than High School Diploma/GED by Race/Ethnicity, 2010

28 Percent of the Population Age 25 and Older in the United States and Texas with Bachelor, Professional, or Graduate Degree by Race/Ethnicity, 2010

29 Race/Ethnicity as a Percent of the Total Population in Texas, 2000 and NH White Hispanic NH Black NH Other 37.6 Source: U.S. Census Bureau, 2000 and 2010 Census 33

30 NH White and Hispanic Populations as a Percent of the Total Population in 2000, 2010, and Projected in NH White Hispanic Note: 2000 and 2010 Census counts derived from U.S. Census PL Data for respective year. Anglo includes non-hispanic White alone (not in combination with any other race). Hispanic include all persons identifying themselves as Hispanic or Latino. The proportions in 2040 are derived from the Hobby Center for the Study of Texas 1.0 Migration Projection Scenario. 50

31 Mean Household Income in 2010 and Projected for 2050 Under Alternative Assumptions of Socioeconomic Closure Between Minority and NonHispanic White Households

32 Percent of All Households in Poverty in 2010 and Projected for 2050 Under Alternative Assumptions of Socioeconomic Closure Between Minority and NonHispanic White Households

33 Mean Consumer Expenditures in 2010 and Projected for 2050 Under Alternative Assumptions of Socioeconomic Closure Between Minority and NonHispanic White Households

34 Mike Cline Associate Director, Hobby Center for the Study of Texas Changing Texas: Implications of Addressing or Ignoring the Texas Challenge For copies of the presentation and additional data for your area go to: Phone:

35 U.S. Census Bureau ( The American Community Survey Decennial Censuses (primarily 2000 and 2010) Population Estimates Population Projections Texas State Data Center: ( Population Estimates Population Projections Hobby Center for the Study of Texas ( Recommended Links/Readings NCES School District Demographic System ( Texas Workforce Commission ( Texas Real Estate Center ( Texas Almanac ( ) Annie E. Casey Foundation Kids Count ( ) See Data by State - Selected Data Indicators by State, County, Place Hobby, Bill How Things Really Work: Lessons from a Life in Politics. Austin, Texas: The Briscoe Center for American History, The University of Texas at Austin. Murdock, Steve H., M. Cline and M. Zey The History of Texas Population in Major Problems in Texas History (2 nd Edition). Sam W. Haynes, ed. Arlington: University of Texas-Arlington Press. Murdock, Steve H., M. Cline, et al Changing Texas: Implications of Addressing or Ignoring the Texas Challenge College Station, Texas: Texas A&M University Press. Office of the Governor Education Key to Continued Texas Prosperity, May 7, Austin, Texas. 83

36 FOR MORE INFORMATION INCLUDING PURCHASE INFORMATION, CONTACT: TEXAS A&M PRESS FAX: OR GO TO: 84

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