On kidsdata.org, measures of income and poverty include:
- Percentage of children ages 0-17 in poverty (i.e., living below the Federal Poverty Level) in general, as well as by race/ethnicity
- Percentage of children living above and below the poverty level, which was $22,113
for a family of two adults and two children in 2010, by income level and family type
- Median income (the income level at which half of families earn more, and half earn less), adjusted for inflation
These data are estimates based on the U.S. Census Bureau's American Community Survey (ACS). Depending on the indicator, breakdowns may include:
- by City and County (250,000 residents or more), as single-year estimates
- by City, School District, and County (20,000 residents or more), as 3-year estimates
- by City, School District, and County (10,000 residents or more), as 5-year estimates
- by Legislative District (10,000 residents or more), as 5-year estimates
In addition, Self-Sufficiency Standard data for common types of households with children in California is available. This measure takes into account household composition and county-level variations in the costs of child care, health care, food, housing, out-of-pocket medical expenses, transportation, and other necessary spending.
Adequacy of household income to meet children's basic needs, according to parent reports, are available for the state as a whole, the Bay Area, and Los Angeles County, and are broken out by race/ethnicity for California.
Family economic status is closely tied to child health and well being. Low family income can affect the ability of the family to provide the environment and experiences a child needs for optimal cognitive and emotional development, and can contribute to behavioral and social problems, and compound poor physical health (1, 2). Children who experience economic hardship when they are young, or who experience extreme and prolonged hardship, are at greatest risk for poor outcomes (1). Not only does poverty affect health, but there is a health gradient along the economic spectrum, so that health status improves as income levels increase. For example, the health of those in the middle-income range tends to be inferior to the health of those in higher income groups (3). The effects of poverty and the stress associated with it can extend to later life, contributing to an increased risk for dropping out of school, poor adult health, poor employment outcomes, and low income (1, 2).
Households headed by single parents or parents with low education levels generally have lower earning capacity and are more likely to be low income than other households (1, 2). African American/Black, Latino, and American Indian children experience economic hardship at higher rates than white or Asian children, due in large part to a higher prevalence of risk factors such as single parenthood and low parent education (1). It is estimated that family economic hardship costs the U.S. up to $500 billion annually in health care spending, lost labor productivity, and criminal justice spending (1).
For more information on Family Income and Poverty please see kidsdata.org’s Research & Links section.
Sources for this narrative:
- National Center for Children in Poverty. (2009). Ten important questions about children and economic hardship. Retrieved from: http://www.nccp.org/publications/pub_829.html#question7
- Redd, Z., Karver, T. S., Murphey, D., Moore, K. A., & Knewstrub, D. (2011). Two generations in poverty: Status and trends among parents and children in the United States, 2000-2010 (Child Trends Research Brief No. 2011-25). Retrieved from: http://www.childtrends.org/Files//Child_Trends-2011_11_28_RB_PovertyStatusTrends.pdf
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World Health Organization. (2008). Commission on social determinants of health, final report. Retrieved from: http://www.who.int/social_determinants/thecommission/finalreport/en/index.html
Family poverty has many causes and dimensions, many of which public policy can address. Maintaining a public safety net for children whose parents do not have the resources to provide adequate food, clothing, health care, and shelter can mitigate some of the effects of poverty. Parental education and employment strategies, as well as tax policy and child support enforcement, have the potential to help lift families out of poverty. Preventing a child from growing up in poverty requires a broad policy strategy targeting diverse root causes.
According to research and subject experts, policies that could influence family income and poverty include:
- Restoring and maintaining CalWORKS/Temporary Assistance to Needy Families cash assistance and work support to families, so that benefits support an adequate living standard and families can successfully transition from welfare to work (1)
- Reforming state budget, taxation, and revenue policy, which would put less pressure on social services during lean budget years (2, 3)
- Preserving public health insurance coverage for children, including immigrant children (4)
- Boosting CalFresh (Food Stamps) enrollment for eligible families, through outreach and elimination of administrative barriers (1, 5)
- Maintaining state and federal funding for subsidized child care and early childhood programs for low-income working families (6)
- Strengthening child support enforcement programs that work effectively with non-custodial parents and ensure that support reaches the families that need it (7)
- Providing tax incentives and funding to enhance job training and economic development programs, targeting higher-wage jobs and industries that pay workers enough to support a family (6)
For more policy ideas and information on this topic see kidsdata.org’s Research & Links section or visit the Urban Institute, California Budget Project, Center for Law and Social Policy, or the Center on Budget and Policy Priorities. Also see Policy Implications on kidsdata.org under Unemployment, Housing Affordability, and Homelessness.
Sources for this narrative:
- Pavetti, et al. (2010). Creating a safety net that works when the economy doesn’t: The role of the food stamp and TANF programs. Center on Budget and Policy Priorities. Retrieved from: http://www.urban.org/uploadedpdf/412068_food_stamps_tanf.pdf
- Bedsworth, et al. (2010). California 2025: Planning for a better future. Public Policy Institute of California. Retrieved from: http://www.ppic.org/content/pubs/report/R_610TGR.pdf
- California Budget Project. (2010). Searching for balance: The social and economic context of the Governor’s proposed 2010-11 budget. Retrieved from: http://www.cbp.org/pdfs/2010/100202_Searching_for_Balance.pdf
- 100% Campaign. (2009). The importance of providing health coverage to all children. Retrieved from: http://www.100percentcampaign.org/fs/resource:id/_a_/disposition=attachment/_a_/xkozkudej1hlrk/xy51tm9qkvlrna?_c=zcq00pv753hsfd
- California Budget Project. (2009). Food within reach: Strategies for increasing participation in the food stamp program in California. Retrieved from: http://cbp.org/pdfs/2009/091221_Food_Stamps.pdf
- Edelman, et al. (2010). Reducing poverty and economic distress after ARRA: Next steps for short-term recovery and long-term economic security. Urban Institute. Retrieved from: http://www.urban.org/uploadedpdf/412150-next-steps-ARRA.pdf
- Wheaton, et al. (2007). The potential impact of increasing child support payments to TANF families. Urban Institute. Retrieved from: http://www.urban.org/UploadedPDF/411595_child_support.pdf
In 2010, an estimated 22% of California children lived below the Federal Poverty Level (FPL) of $22,113 annually for a family of four with two children. The percentage of California children living below FPL had declined from 2003 to 2007, but increased between 2008 and 2010. This measure underestimates the extent of poverty, however, as the Federal Poverty Level does not take into account regional variations in the cost of living or the relative costs of basic needs like housing, health care, and child care.
Therefore, families may earn more than the poverty level and still struggle to make ends meet.
Another measure related to income and poverty is the Family Economic Self-Sufficiency Standard, which represents the estimated amount of money needed to adequately meet basic needs. It takes into account a range of costs that a family faces on a daily basis, as well as household composition and county-level variations in costs. In 2011, the Self-Sufficiency Standard for a family of two adults and one infant ranged from $41,611 in Tulare County to $76,588 in Marin County. Between 2008 and 2011, the Self-Sufficiency Standard increased in the vast majority of counties for the household types shown on kidsdata.org. (Self-sufficiency data for 156 household types in each California county are available at Insight Center for Community Economic Development.)
A child's likelihood of living in poverty varies by race/ethnicity and family structure. For example, in 2009 in California, 30.7% of Native American children, 29.4% of African American/Black children, and 27.5% of Latino/Hispanic children lived below the Federal Poverty Level, compared to 9.0% of Caucasian/White children and 11.7% of Asian American children. Among California children living in single-parent vs. two-parent households, more than one-third (37.2%) of children in single-parent families lived below the FPL in 2010, compared to 13.6% of children living with two parents.
In California, the median family income in 2009 was $67,038, and ranged
at the county level from $102,620 in San Mateo County to $44,543 in
Tulare County. Among large cities, median family income was highest in
San Francisco ($86,713) and lowest in Fresno ($48,518).
About one in four children (26%) in California has parents who believe their household income is “not quite enough” or “not nearly enough” to pay for their child’s basic needs, such as food, clothing, and shelter. Parents of African American/Black children are more likely (43%) to report their household income is “not quite enough” or “not nearly enough” to pay for their children’s basic needs than parents of Latino/Hispanic (32%), Asian/Pacific Islander (20%), and White (13%) children.