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Title: The Effect of the 2008 Great Recession on Child Poverty in California: A Fixed Effects Model

Citation Type: Dissertation/Thesis

Publication Year: 2015

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Abstract: This paper investigates how the 2008 financial crisis affected child poverty in California. Using panel data from 2003 to 2012, this paper evaluates the effect of unemployment and foreclosure rates, as well as exogenous household characteristics, on the likelihood of a child being in poverty in California. Data from both the individual household level and the Metropolitan Statistical Area (MSA) level are used. The main finding is that the recession has had a statistically significant effect on the likelihood of a child being in poverty in terms of unemployment and foreclosure rates, especially when fixed effects are applied. At the same time, household characteristics such as education, race and marital status are also statistically significant in their effects on a childs poverty status. However, changes in exogenous household characteristics can have a larger effect on childs poverty status as compared to the cyclicality of the economy.

Url: https://www.econ.berkeley.edu/sites/default/files/Laura Tsui .pdf

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Authors: Tsui, Laura

Institution: University of California-Berkeley

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Data Collections: IPUMS CPS

Topics: Poverty and Welfare

Countries: United States