Examining Poverty and Industry Employment Across Racial Lines (2013)

Undergraduate: Kahlil Blount

Faculty Advisor: William Parke
Department: Economics

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Given the growing income disparity observed in the United States, it is important to study the determinants of poverty. Despite the mixed results of welfare programs, poverty continues to disproportionately affect minority populations, with African Americans and Hispanics having poverty rates at least double those of non-Hispanic Whites. Thus, the purpose of my project is to examine the impact of industry composition on the poverty rates of minority populations. Using county-level Census Bureau data from the 2000 Census, I conduct regression analysis on a poverty model focused on labor market variables. From my results, I identify Finance/Insurance/Real Estate, Information Services, and Transportation/Utilities as the most effective industries in reducing poverty rates among minorities. Furthermore, my research investigates the impact of regional differences in poverty across racial groups. For African Americans and Hispanics, the industry employment variables used in this project were significant in reducing poverty rates in the regions where they are most concentrated. However, for the American Indian population in the regions where they are most concentrated, employment variables were not significant in reducing poverty.