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Sunday, May 18, 2008

"The Politics of Human Capital"

Will Wilkinson:

The Politics of Human Capital, by Will Wilkinson: At Club Troppo, Don Arthur has an excellent long post on the politics of the human capital approach to poverty and inequality. An excerpt:

These research findings on early childhood ... create a dilemma for egalitarians. On the one hand, the research suggests that publicly funded investments in early childhood could significantly improve the well being of children from disadvantaged families. But on the other hand, they seem to be stigmatising less educated adults — particularly those who are unable to work and depend on welfare benefits. The poor are portrayed as underdeveloped human beings — ignorant, lethargic and unable to control their impulses. Worse still, their parenting practices have been identified as an important cause of intergenerational disadvantage.

This has a familiar ring to it. In the early 19th century Alexis de Tocqueville warned that England’s system of poor relief was cultivating a class of unproductive and disorderly citizens:

The number of illegitimate children and criminals grows rapidly and continuously, the indigent population is limitless, the spirit of foresight and of saving becomes more and more alien to the poor. While throughout the rest of the nation education spreads, morals improve, tastes become more refined, manners more polished — the indigent remains motionless, or rather he goes backwards. He could be described as reverting to barbarism. Amidst the marvels of civilisation, he seems to emulate savage man in his ideas and his inclinations (pdf).

It’s a fear that’s never really gone away. Recently, the Age’s Russell Skelton spoke with a group of Indigenous elders in Walgett about the effect of the Australian government’s baby bonus:

“My daughter has four kids and she cannot read or write,” says a member of the group, who feels powerless as a parent. It will become a terrible circle, predicts another: “Kids who cannot read or write have babies that won’t be able to read or write. But nobody can tell them that. They don’t want to listen.”

Some egalitarians worry that embracing the rhetoric of human capital means joining with conservatives to slander to disadvantaged. Social welfare initiatives become less about social justice and more about social control. Instead of focusing on the obligations of the rich, the human capitalists increasingly focus on the behaviour of the poor.

I think this is a profound insight. And I think one can see the outlines of a workable third way here. On the one side are conservatives and libertarians overly attached to genetic explanations of socioeconomic achievement, who therefore see spending on early childhood development as futile. On the other side are liberals overly attached to abstract structural explanations of the reproduction of class, who therefore see a focus on state interventions in early childhood as elitist victim-blaming. I find that I actually side more with the liberal complaint than with the conservative one, though not so much for the reason that it is victim-blaming. Many poor parents are to a large extent to blame for the under-development of their children. There doesn’t seem to be a way around that. But I worry very much about the social control of the poor by elites, which Don mentions. However, I worry about the harms of self-reproducing poverty even more. At this point, I’m not sure where I really stand, though I think I’m tilting in favor of Heckmanesque early childhood programs as part of the liberaltarian package, which also would include wage subsidies and beefed-up unemployment benefits together with a radical deregulation of the labor market and the economy at large.

This statement seems controversial to me:

Many poor parents are to a large extent to blame for the under-development of their children. There doesn’t seem to be a way around that.

Is it the parents, or is it their circumstances? Would they still be bad parents if they had been born in a different place (perhaps here), gone to different schools, etc., etc.? If the answer is no, in what sense are the parents to blame for not rising above their circumstances (yes, I know you would have found a way out - you're special - but most people don't)? And if you  believe they still would have been lousy parents even if their social environment had been different, then isn't that just another version of the genetic or inherent traits argument? [Update: I'm wondering if I bought into the "they are bad parents" idea too easily (and think I did) - maybe parenting isn't the problem, it's other social factors that make the difference...]

I think circumstances matter a lot, and I don't view "state interventions in early childhood as elitist victim-blaming". If there's blame to be handed out, it should go to our collective societal choice to allow these circumstances to endure even as the nation as a whole has become so wealthy. We put people into nearly impossible conditions to overcome, then point fingers of blame when they cannot escape (and throw great numbers of them into prison).

This is, of course, one of the big divides on this issue, those who believe it is largely personal choices that cause people to end up struggling, and those who believe it is largely due to circumstances beyond an individual's control. If you believe that it is largely from things outside an individual's control - the luck of the draw in terms of where you are born or inherited wealth at birth for example - rather than from poor personal choices, then helping people with generous social insurance seems like the right thing to do. Very little of what the individual did personally caused the outcome, so why should they be held accountable for it? But if you believe the opposite, that bad outcomes arise largely from poor personal choices made with free will, and that an individual ought to be held accountable for their choices, then your view of society's obligation to help will differ.

I don't know how to solve the poverty problem for sure, and I don't mean that people should never be held accountable for their actions as individuals. But I do know that when it comes to human capital, according to estimates, only "65 percent of blacks and Hispanics leave secondary schooling with a diploma," and that "there is little convergence in high school graduation rates between whites and minorities over the past 35 years." We need to do better than that, we need to do our best to give everyone an equal chance to realize their potential, and if  "Heckmanesque early childhood programs" are part of the answer, what are we waiting for? [Update: See here for more on Heckman's work.]

    Posted by on Sunday, May 18, 2008 at 02:43 PM in Economics, Social Insurance | Permalink  TrackBack (0)  Comments (48)


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