"Childhood Poverty and Labour Market Exclusion"

Paul Krugman's column today prompted memory of this paper:

Sweden: Childhood poverty has a negative impact on attainment in adulthood, by aplefebvre: In a new Working Paper two researchers shows that living conditions during childhood and adolescence structure socio-economic circumstances in midlife. It is not a surprise, but it is a new proof coming from 2 researchers and the Swedish prospective institute:

Childhood Poverty and Labour Market Exclusion. Findings from a Swedish Birth Cohort., Bäckman, Olof & Anders Nilsson
Arbetsrapport/Institutet för Framtidstudier; 2007:13: Abstract Research has consistently shown that poverty and economic hardship have negative consequences for children. Few studies, however, have examined whether these consequences persists into adulthood. In the present paper we broaden the focus and analyse how living conditions during childhood and adolescence structure socio-economic circumstances also in midlife. How does exposure to poverty during childhood and adolescence affect future probabilities for labour market exclusion and inclusion in early adulthood and in midlife?

The data are drawn from a new longitudinal Swedish data set - the Stockholm Birth Cohort Study (SBC) - in which we can follow a cohort of Swedes from birth (1953) to the age of 48 (2001). Our results show that childhood poverty clearly has a negative impact on attainment in adulthood. Persistent poverty in the family of origin and entering poverty in adolescence are particularly detrimental for life chances. This is most salient in the analysis of exclusion in midlife. Educational achievement and deviant behaviour (criminality and drug abuse) are identified as important intervening variables. The results are interpreted as a process of cumulative disadvantage. In our final analyses we focus on those excluded from the labour market in early adulthood and their likelihood to be included in midlife. We find that that resource attainment in terms of education and family has positive effects for the chance for inclusion and may in that respect be regarded as turning points. ...

Financial poverty is a central indicator of poor living conditions because of its correlation with other dimensions of living conditions such as housing, health, education, social ties etc (Fritzell and Lundberg 2000). Nevertheless, we know from previous research that financial poverty is far from perfect as an indicator of adverse living conditions, marginalisation or social exclusion. Not least have authors within the European social exclusion literature pointed to the importance of adopting a multidimensional approach (cf. Atkinson 1998; Atkinson et al 2002). In this paper our main focus is on financial poverty as well, but we also account for other aspects of adverse living conditions during childhood and adolescence. More specifically our aim is to map how the dynamics of exposure to poverty during childhood and adolescence affect future probabilities for inclusion and exclusion both in early adulthood and in midlife. This also comprises analyses of so called turning points, i.e. events or processes that can turn a negative life course positive. This is accomplished by analysing a new Swedish data set - the Stockholm Birth Cohort Study (SBC) - in which we can follow a cohort of Swedes from birth to the age of 48 (Stenberg et al. 2006).

The paper proceeds with a discussion of some theoretical issues regarding the link between childhood poverty and adulthood living conditions. The data are then presented along with the operational definitions employed in the study. The presentation of the results begins with a section focusing on how poverty, its timing and duration in the family of origin, structure risks for labour market exclusion in early adulthood and midlife. This is followed by a section where we focus on factors contributing to chances for inclusion in midlife among those excluded in early adulthood. The paper ends with a discussion of these results. [full report]

Here's the conclusion from the paper:

Conclusion Childhood poverty and social exclusion are topical issues on the European political agenda. In this paper we have studied how the dynamics of exposure to poverty during childhood and adolescence affect future probabilities for inclusion and exclusion both in early adulthood and in midlife. We have also analysed which factors contribute to inclusion in midlife among those at the margins of the labour market in early adulthood. The main findings of the first of these analyses are that persistent poverty in the family of origin and entering poverty in adolescence is particularly detrimental for life chances. This is most salient in the analysis of exclusion in midlife. The observation that the effect of poverty on the risk of exclusion in adulthood grows across the consecutive analyses we interpret as a process of cumulative disadvantage.

Other conditions in the family of origin have only a weak impact on future labour market exclusion in the analyses we have shown here. However, this is at least partly explained by the fact that our poverty indicator (social assistance take-up) is correlated with these dimensions of resource deficiencies (single parenthood, social class, child welfare committee, etc.).

The most important intervening variables are the indicators of deviant behaviour (criminality and drug abuse) and educational level at age 25. When these are included in the analyses the effect of the poverty indicator is heavily reduced. Thus, much of detrimental effect of poverty is mediated by these factors. Well worth mentioning is also the fact that teenage parenthood is not a risk factor for future exclusion, as opposed to what has often been found in Anglo-American studies. ...

We have in this paper shown that childhood living conditions clearly have an impact on future attainment. However, these effects do not only last up until transition into adulthood and early adulthood. Instead they seem to persist through the life course. This does not mean that a negative route in life must necessarily continue in that direction. By increasing one’s resources opportunities are made available through the life course to turn it to the better.

Although these are important findings, we need more finely tuned analyses in order to properly depict life trajectories in general and risk trajectories in particular, and thereby more clearly reveal the mechanisms at work. Future research within this area should also focus more on the functioning of institutional resources and how they enhance and/or impede life chances.

Comments

[Jay]

Further proof that there are substantial negative externalities that result from individual's sexual behavior. As such, we need the typical democratic party response to any act that burdens others with externalities, regulate it!

says...

That's pretty stupid, even conditioned on your past stupidity. Do you work at it?

[Jay]

Only following the logic of the democrats on CO2 emissions and the likes.

[Petter]

It is sad that we have the kind of permanent poverty described, even here in Sweden. It is correct that despite the most ambitious welfare politics and world record tax rates through half a century, poverty (in the western sense, no one must go hungry) remains.

I think the report is very accurate. But what to do about it? One must be either without selfconfidence or have problems with drugs in order to remain poor in this country, lack of official support in form of financial means/work programs/free education is not the problem. Something else is.

There is indeed a very comfortable and safe life for a very large portion of the population here, but of course the state hasn't replaced family altogether. Sometimes the controlling of people less fortunate has gone to far - children do sometimes get taken care of by authorities. In some cases it has been the wrong decision. How far should we go in order to "form" new generations?

[anne]

Petter, please do suggest additional readings on Sweden when possible. Any links would be helpful, and thank you for the comment.

[Patricia Shannon]

Because of natural variations, there are going to be people who are lacking in mental, psychological, or/or physical capacity to be productive members of society. Of course, these are not discrete categories. In an ideal environment, all mental and psychological deficiencies would be ultimately due to physical causes, whether environmental or genetic. Culture can make a large difference in how much opportunity people have to maximize their potential, but it can't undo all problems. And if paradise were possible, my experience is that we would end up terribly bored!