Net Worth Poverty and Food Insecurity.
Lisa A Keister1,2, Christina Gibson-Davis2, Lisa A Gennetian2
1Department of Sociology, Duke University, Durham, North Carolina, USA.
American Journal of Agricultural Economics
|July 7, 2025
Summary
Net worth poverty (NWP), defined by insufficient assets to cover basic needs for three months, significantly increases food insecurity risk in families with children. Asset poverty, more than debt poverty, more than doubles this risk.
Area of Science:
- Socioeconomic factors
- Public health
- Family studies
Background:
- Food insecurity affects many American families, especially those with children.
- Research traditionally focuses on income poverty (IP), overlooking other poverty measures.
- Net worth poverty (NWP) is an understudied indicator of financial hardship linked to food insecurity.
Purpose of the Study:
- To investigate the relationship between net worth poverty (NWP) and food insecurity in households with children.
- To examine the distinct roles of asset poverty and debt poverty within NWP.
- To explore disparities in NWP and food insecurity across racial and ethnic groups.
Main Methods:
- Utilized data from the 2015-2021 Panel Study of Income Dynamics (PSID).
- Analyzed 5,762 households with at least one resident child under 18.
- Defined NWP as having insufficient net worth to cover basic needs for three months.
Main Results:
- Net worth poor households were 11.3% more likely to be food insecure than non-poor households.
- Asset poverty more than doubled the risk of food insecurity compared to debt poverty.
- While Black and Hispanic households had higher rates of NWP and food insecurity, the association between poverty and food insecurity did not differ by race/ethnicity.
Conclusions:
- Low net worth, encompassing both insufficient assets and high debt, is a significant risk factor for food insecurity.
- Asset poverty is a stronger predictor of food insecurity than debt poverty.
- Addressing wealth disparities is crucial for mitigating food insecurity in vulnerable populations.
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