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The Likelihood of Experiencing Relative Poverty over the Life Course.

Mark R Rank1, Thomas A Hirschl2

  • 1George Warren Brown School of Social Work, Washington University, St. Louis, Missouri, United States of America.

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Most Americans experience relative poverty, defined as income below the 10th or 20th percentile, during their adult lives. This life course analysis highlights the high prevalence of economic vulnerability across the population.

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Area of Science:

  • Sociology
  • Economics
  • Public Health

Background:

  • Poverty research in the US often focuses on absolute poverty levels.
  • A life course perspective offers a more dynamic understanding of economic vulnerability.

Purpose of the Study:

  • To analyze the prevalence and characteristics of relative poverty over an individual's life course.
  • To examine the likelihood of falling below the 10th and 20th income percentiles between ages 25 and 60.

Main Methods:

  • Utilized the Panel Study of Income Dynamics (PSID) data from 1968-2011.
  • Constructed life tables to model the probability of experiencing relative poverty.
  • Analyzed demographic and socioeconomic factors associated with poverty.

Main Results:

  • A significant portion of the population experiences relative poverty: 61.8% fall below the 20th percentile, and 42.1% below the 10th percentile between ages 25-60.
  • Younger individuals, nonwhite race, females, and those not married face higher risks.
  • Lower educational attainment (≤12 years) and work disability are strongly associated with increased poverty likelihood.

Conclusions:

  • Relative poverty is a widespread phenomenon across the adult lifespan in the US.
  • Specific demographic and socioeconomic factors significantly increase an individual's risk of experiencing poverty.
  • Findings underscore the need for policies addressing long-term economic security and vulnerability.