9/9/2015

PA5401 Poverty, Inequality and Public Policy

4:00-5:15 PM Monday/Wednesday

Humphrey Center 184

Prof. Maria Hanratty

251 Humphrey School

612-625-6500

Office Hours:

M 1-3 or by appointment

Course Description/Goals and Objectives

Welcome to Poverty, Inequality and Public Policy. The class draws together some of the most influential research, as well as more up-to-date articles and data that have influenced the evolution of social policies in the United States. This class is intended to offer students the opportunity to apply economic and empirical skills learned in the first year core courses.

Key goals and objectives are for students to:

o  Understand theories for how labor market opportunities, family structure, and neighborhood location may affect poverty and inequality

o  Evaluate empirical research that tests alternate theories of poverty and inequality

o  Understand the motivations for social policy reforms, and the potential impacts of policies on families and children

o  Understand the key conflicts inherent in the design of social welfare polices

o  Synthesize and critique policy evaluation research;

o  Construct and present coherent arguments for reform that effectively use current research.

The Mechanics of the Course

The class will be taught in a mixed lecture-discussion format. We also will incorporate small group discussions and small group assignments to help you to apply the reading material. Assignments will be discussed in class before they are due and a grading rubric provided. Additional detailed instructions may also be provided in class and/or via email. Students are responsible for contacting the instructor to obtain additional instructions or handouts from any class sessions they miss.

1) Reaction Paragraphs (15% of grade): To encourage you to begin to clarify your thinking prior to class, you are required to post a short reaction paragraph which summarizes your reactions to one or more of the readings. These reactions could include: a) a critique of the methods of analysis, b) a discussion of the importance of the article for policy, c) a question for the class for discussion, &/or d) a discussion of how this issue connects to your personal experience or research/career interests. Students are encouraged to respond to other students’ posts. Reaction paragraphs must be posted by 3:45 pm prior to class in order to receive credit. You will receive full credit if you make a posting for 19 of 22 classes.

2) Class Presentation and Class Participation (10% of grade): Students will work in small groups to prepare an in-class presentation on one or more of the readings in a selected class. Students will be asked to highlight the main findings of the article, to discuss the implications of the article for policy, and to critique the methods of analysis.

Students bring a wealth of knowledge and experience to class from which other students and the instructor can learn. Therefore, each student will be expected to participate constructively in class discussions, including in-class discussion assignments. In general, students who attend each class and make their class presentation will receive 7 points; students who occasionally volunteer constructive comments will receive 8-9 points; students who consistently add valuable comments to the class discussion and facilitate their classmates’ participation (but do not dominate the discussion) will receive 10 points.

3) Short Memo on Poverty Measurement (10% grade): Students will work on an in-class exercise on poverty measurement and write a short memo summarizing their results. It is important that you are in class September 10th, to work on the project.

4) Policy Memos (40% grade): Students will write two short policy memos that critically synthesize research on a specific topic, and that includes implications for policy. All memos should directly incorporate relevant readings from class, although you can go beyond these readings if you would like to address a specific issue in more detail.

5) Final Group Project: (25% grade): To allow you to delve into a specific issue in more depth, you will be asked to work on a group project. You will give an oral presentation to the class of your paper in the last two weeks of class. The final paper should be 10-15 double spaced pages for a group size on three (smaller or larger groups could write shorter/longer papers). These projects can follow one of two formats.

 Develop a Policy Reform Proposal: The paper should clearly delineate the problem addressed, present arguments for and against the policy reform, and present a definitive argument as to why this proposal is ultimately a good idea.

 Empirical Analysis: This paper could test a hypothesis regarding economic causes of poverty, assess recent trends in well-being for subgroups not considered in this class, or examine the impact of policy interventions. If you choose this option, please see me early in the class, as it takes more time to implement successfully.

Assignment Deadlines

Assignment / Due Date / Points
Reaction Paragraphs (19-22 total) / Before Each Class (2/week) / 15.0
Class Presentation &
Class Discussion / Date individually assigned/ Ongoing / 10.0
Poverty Measurement Brief / September 28 / 10.0
Policy Brief #1 / November 2 / 20.0
Policy Brief #2 / November 23 / 20.0
Final Group Presentation / December 7,9,14,16 / 25.0
Final Group Paper / December 19
TOTAL / 100.0

Policies on Late Work

Students will not be penalized for absence during the semester due to unavoidable or legitimate circumstances. Such circumstances include verified illness, participation in intercollegiate athletic events, subpoenas, jury duty, military service, bereavement, and religious observances. Please notify me prior to the due date, so that we can make alternate arrangements.

Students without a legitimate reason for turning in late work should turn in all work within 24 hours of the due date to receive full credit on the assignment. I prefer to receive both a written copy and an email copy of your work. Students who do turn in late work without a legitimate reason will receive a grade penalty of up to ½-grade (i.e. A to A-, etc) for work handed in within the first week it is due, with higher penalties for assignments handed in later.

Option to Re-Write Memos:

Students who would like to improve their grade have the option to rewrite one of the individual memos. Students who wish to do so, should meet with me to discuss any comments I have made on the memo and to discuss a plan for turning in a revised memo. The grade for this work will be based on the revised memo.

Disability Accommodations:

The University of Minnesota is committed to providing equitable access to learning opportunities for all students. Disability Services (DS) is the campus office that collaborates with students who have disabilities to provide and/or arrange reasonable accommodations.

If you have, or think you may have, a disability (e.g., mental health, attentional, learning, chronic health, sensory, or physical), please contact DS at 612-626-1333 to arrange a confidential discussion regarding equitable access and reasonable accommodations.

If you are registered with DS and have a current letter requesting reasonable accommodations, please contact me as early in the semester as possible to discuss how the accommodations will be applied in the course.

For more information, please see the DS website, https://diversity.umn.edu/disability/.

Mental Health and Stress Management:

As a student you may experience a range of issues that can cause barriers to learning, such as strained relationships, increased anxiety, alcohol/drug problems, feeling down, difficulty concentrating and/or lack of motivation. These mental health concerns or stressful events may lead to diminished academic performance and may reduce your ability to participate in daily activities. University of Minnesota services are available to assist you. You can learn more about the broad range of confidential mental health services available on campus via the Student Mental Health Website: http://www.mentalhealth.umn.edu.

Remember that there are advisors in the Humphrey Student Services office who are trained and experienced counselors. They are available at very short notice to address any concerns you may have and provide further resources within the university. Humphrey Student Services HHH 280, 612-624-3800

IV. Course Readings

All readings are available on the class web site. Asterisked readings are highly recommended. I will give you further guidance on which readings to focus on before each class.

You also may want to become acquainted with some of the following web sites.

·  Institute for Research on Poverty: http://www.ssc.wisc.edu/irp

·  UC Davis Center for Poverty Research: http://poverty.ucdavis.edu/about-center

·  Stanford Center on Poverty and Inequality: http://web.stanford.edu/group/scspi/index.html

·  Center on Budget and Policy Priorities: http://www.cbpp.org

·  Center on Law and Social Policies: http://www.clasp.org

·  Urban Institute: http://www.urban.org

·  Brookings Institute: http://www.brookings.edu

·  Manpower Demonstration Research Corporation: http://www.mdrc.org

·  National Bureau of Economic Research: http://www.nber.org

This syllabus is a work in progress. I may change the readings to better meet the specific needs and interests of this class. If so, I will give you enough advance notice to anticipate the changes.

For those of you who are writing significant research projects, and would like to tailor the assignments to meet your needs, please see me. I am open to considering changes to the format, provided you consult with me before the assignment is due.

September 9: Course Overview

Rebecca Blank, “Selecting Among Poverty Policies: Can an Economist be Both Critical and Caring,” Review of Social Economy, LXI(4), December 2003.

William Darity, “Will the Poor Always be With Us?” Review of Social Economy, LXI(4), December 2003.

Nancy Folbre, “Blowing the Whistle on Poverty Policy,” Review of Social Economy, LXI(4), December 2003.

September 14: Conceptualizing & Measuring Poverty

* Amartya Sen, “Poor Relatively Speaking,” Oxford Economic Papers, July 1983.

* Rebecca Blank, “Presidential Address: How to Improve Poverty Measurement in the United States,” Journal of Policy Analysis and Management, 27(2), Spring 2008.

Timothy Smeeding, “Poverty Measurement”, University of Wisconsin Discussion Paper 1424-14, June 13, 2014

Liana Fox, Irwin Garfinkel, Neeraj Kaushal, Jane Waldfogel, “Waging War on Poverty: Historical Trends in Poverty Using the Supplemental Poverty Measure,” National Bureau of Economic Research Working Paper 19789, January 2014

September 16: Poverty Measurement Exercise

Read Instructions on Poverty Measurement Exercise on Moodle

U.S. Census Bureau, Observations from the Interagency Task Force on Developing a Supplemental Poverty Measure, March 2010

US Census Bureau, The Research Supplemental Poverty Measure, 2012

September 21: Trends in Poverty & Macro-Economy

*Hilary Hoynes, Marianne Page, and Ann Huff Stephens, “Poverty in America: Trends and Explanations,” Journal of Economic Perspectives, 20(1), Winter 2006.

*Hilary Hoynes, Douglas L. Miller and Jessamyn Schaller, “Who Suffers during Recessions?” Journal of Economic Perspectives, Summer 2012.

*Jeff Larrimore, Richard V. Burkhauser, Philip Armour, “Accounting for Income Changes over the Great Recession (2007-2010) Relative to Previous Recessions: The Importance of Taxes and Transfers,” National Bureau of Economic Research Working Paper 19699, December 2013

*Richard Freeman, “Failing the Test? The Flexible U.S. Job Market in the Great Recession,” National Bureau of Economic Research Working Paper No. 19587 October 2013

September 23: Trends in Wage Inequality

*David Autor, 2010. “The Polarization of Job Opportunities in the U.S. Labor Market,” Center for American Progress and the Hamilton Project, April 2010.

*Claudia Goldin and Larry Katz,” The Future of Inequality: The Other Reason Education Matters so Much,” Milken Institute Review, October 2009.

Frank Levy and Peter Temin, Inequality and Institutions, National Bureau of Economic Research Working Paper 13106, May 2007

September 28: Child Poverty & Economic Mobility

*Greg J. Duncan, Katherine A. Magnuson and Elizabeth Votruba-Drzal, “Boosting Family Income to Promote Child Development,” Future of Children 24(1), Spring 2014

*Ross A. Thompson, Stress and Child Development, Future of Children, 24(1), Spring 2014

*Neeraj Kaushal, “Intergenerational Payoffs to Education,” Future of Children, 24(1), Spring 2014

National Scientific Council on the Developing Child (2005). Excessive Stress Disrupts the Architecture of the Developing Brain: Working Paper #3. http://www.developingchild.net

September 30: Early Childhood Interventions

*Heckman, James J, “Skill formation and the economics of investing in disadvantaged children.” Science 312(5782): 1900-1902, 2006.

*Isabel Sawhill and Quentin Karpilow, “How Much Could We Improve Children’s Life Chances by Intervening Early and Often?”, Brookings Center on Children and Poverty, Brief #54, July 2014

*Janet Currie, “Early childhood education programs.” Journal of Economic Perspectives 15: 213-238, 2001

*Greg Duncan and Katherine Magnuson. 2013. "Investing in Preschool Programs." Journal of Economic Perspectives, 27(2): 109-32.

P. Lindsay Chase-Lansdale and Jeanne Brooks-Gunn, Two-­‐Generation

Programs in the Twenty-First Century, Future of Children, 24(1), Spring 2014

October 5: Interventions for Adolescents

Cunha, F., Heckman, J., Lochner, L. & Masterov, D.V. (2006). “Interpreting the Evidence on Life Cycle Skill Formation.” National Bureau of Economic Research Working Paper 1131, May 2005 (Read Sections 6.2 and 6.3 and Conclusion only)

Steinberg, Laurence, “Our Last Best Chance: Why Adolescence Matters More than Ever,” Colloquium Duke Center for Child and Family Policy, September 26, 2013

Jens Ludwig and Anuj Shaw, “Think Before You Act: A New Approach to Preventing Youth Violence and Dropout,” Brookings Institution, May 1, 2014

Sara B. Heller, Anuj K. Shah, Jonathan Guryan, Jens Ludwig, Sendhil Mullainathan

Harold A. Pollack, Thinking, Fast and Slow? Some Field Experiments to Reduce Crime and Dropout in Chicago, NBER Working Paper 21178,

Bloom, Howard and Rebecca Unterman. 2012. “Sustained Positive Effects on Graduation Rates Produced by New York City’s Small Public High Schools of Choice.” New York: MDRC.

Phillip Levine, “Designing Effective Mentoring Programs for Disadvantaged Youth,” Brookings Institution, The Hamilton Project, June 19, 2014

October 7: Workforce Development

*Christopher T. King, Carolyn J. Heinrich, “How Effective Are Workforce Development Programs? Implications for U.S. Workforce Policies,” Presentation at APPAM Fall Research Conference, November 2011.

Carolyn J. Heinrich, Peter R. Mueser, Kenneth R. Troske, Kyung-Seong Jeon,

Daver C. Kahvecioglu, “New Estimates of Public Employment and Training

Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program,” IZA Discussion Paper 4569, November 2009.

Ann Huff Stevens, Michal Kurlaender, Michel Grosz, Career Technical Education and Labor Market Outcomes: Evidence from California Community Colleges, NBER Working Paper 21137, April 2015