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Typology of poverty Bryniawsky, Zenon 1968

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TYPOLOGY OF POVERTY by Zenon Bryniawsky Thomas De Vries Ronald M. Hansen, Roy H. Jones Darlene Marzari Roy Odren THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SOCIAL WORK IN THE SCHOOL OF SOCIAL WORK Accepted as conforming to the standard required for the degree of Master of So c i a l Work School of S o c i a l Work 1968 The University of B r i t i s h Columbia In p r e s e n t i n g . t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h Columbia, I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and Study. I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may be g r a n t e d by the Head o f my Department. or by h.i;s r e p r e s e n t a t i v e s . I t i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . Department o f The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8, Canada Date i i ABSTRACT This study i s an attempt to discover relationships between p a r t i c u l a r factors which we f e l t would be indicators of poverty. Of the many factors suggested by the l i t e r a t u r e of poverty, we investigated r e l a t i o n s h i p s between income l e v e l , employment status, health conditions, education l e v e l , and age. Using the Vancouver data c o l l e c t e d by the Nu-life Study, we designed a program which would indicate the nature and strength of the r e l a t i o n s h i p between these f a c t o r s . From a d e f i n i t i o n of our variables, a model was designed using as a basis income adequacy. The available data contained information on other variables which we used, such as - marital status, sex, and number of persons per household. From t h i s the hypothetical construct was formulated around hypotheses r e l a t i n g to four groups which were configurations of the employment status and income adequacy v a r i a b l e s . Our s t a t i s t i c a l analysis was based on the c h i square method for measuring sig n i f i c a n c e and consistency. The contigency c o - e f f i c i e n t was employed to measure the relatedness of the v a r i a b l e s . We found that there were indeed p o s i t i v e l i n k s between the factors referred to. However, these l i n k s were not as strong as we had anticipated. Although the project could not e s t a b l i s h cause-effect relationships, the findings do help to e s t a b l i s h some of the components i n the poverty c y c l e . These components would not i i i seem to have equal strength i n determining l e v e l of income. Further research might investigate why some of these factors had greater bearing on income l e v e l than others. For example, the l e v e l of education seemed to have a greater e f f e c t than did the health f a c t o r . Consequently, we see t h i s study as a step i n determining the c h a r a c t e r i s t i c s of poverty. TABLE OF CONTENTS Page No. ABSTRACT i i INTRODUCTION 1 CHAPTER I . DEFINITION OF TERMS 3 A. Sample Area 3 B. Income Adequacy 5 C. Education 8 D. Health 8 E. Other Variables 9 CHAPTER I I . HYPOTHESES 10 CHAPTER III.STUDY FINDINGS 16 A. STATISTICAL ANALYSIS . . . 19 CHAPTER IV. CONCLUSIONS 21 BIBLIOGRAPHY 26 APPENDIX LIST OF FIGURES Page No. FIGURE 1. Design of the Four Household types 11 FIGURE 2. General C h a r a c t e r i s t i c s of the Four Types i n terms of Percentages 15a LIST OF TABLES Page No. TABLE 1. Income Adequacy l e v e l 8 TABLE 2. I n i t i a l findings 15 TABLE 3. Chi Square and Contingency C o e f f i c i e n t Values 20 ACKNOWLEDGEMENTS We would l i k e to express deep appreciation to Larry B e l l , Director of Research, United Community Services i n Vancouver, who has given us invaluable assistance i n our dealing with the many technical and procedural aspects of t h i s research pr o j e c t . INTRODUCTION By the poor, we mean those who are not now maintaining a decent standard of l i v i n g . . . those whose basic, needs exceed t h e i r means to s a t i s f y them. "1 The above quotation, unexceptional though i t may be, i l l u s t r a t e s an a l l too prevalent feature o f the l i t e r a t u r e dealing with poverty - i t s lack of p r e c i s i o n . I f one has not s a t i s f a c t o r i l y defined "decent standard of l i v i n g , " "basic needs," and " s a t i s f a c t i o n " one simply does not know much about poverty, i n either the general or the p a r t i c u l a r . This research project i s an attempt, on a very l i m i t e d scale, to bring d e f i n i t e , q u a ntifiable evidence to bear on the subject of poverty. Most writers agree that there e x i s t s a r e l a t i o n s h i p between c e r t a i n socio-economic factors and poverty. The factors most commonly named are unemployment, poor health, l i m i t e d education and unfavorable age and family composition. Together they add up to an i n a b i l i t y (in some cases an unwillingness) to earn money beyond a certa i n l e v e l - the l e v e l which authorities have agreed represent the threshold between poverty and adequate income. At the r i s k of leaving oneself open to the charge of generalization, the point i s worth re-emphasizing once, l e s t i t be l o s t i n a morass of data l a t e r on; poverty means not enough money. 1 In Gordon, R.A. "An Economist's View of Poverty." Margaret S. Gordon. Poverty In America. Chandler Publishing Co., 1965. p.5. - 2 -I f poverty means "not enough money," then i t i s reasonable to suggest that there are a number of factors 2 m i l i t a t i n g against the a c q u i s i t i o n of money. Martin Rein claims that poor health and n u t r i t i o n are components i n the poverty c y c l e . Ireland speaks of the necessity for education i n a society which places increasing emphasis on credentials and diplomas. We f e l t , too, that the age factor might have some bearing on income l e v e l . Perhaps the most obvious consideration i n t h i s analysis i s the employment status of the i n d i v i d u a l . Therefore, we selected employment status and income adequacy as the two major variables against which other variables could be measured. The sample unit was composed of economic households, randomly selected from low-income areas adjacent to Vancouver's urban core. The eco l o g i c a l c h a r a c t e r i s t i c s of the areas suggest that the range of incomes would tend towards the lower end of the economic sc a l e . 2 Rein, Martin. "Social Research and the Elimination of Poverty." Journal of American Inst i t u t e of Planners. Vol.33, No.3. May 1967. 3. Irelan, Lola M. E d i t o r . Low Income L i f e S t y l e s . U.S. Department of Health, Education, and welfare, iyob. - 3 -CHAPTER I DEFINITION OF TERMS A « Sample Area The nine hundred families studied by the Nulife Study i n the Vancouver sample were residents i n the areas covered by Census Tracts seven and fourteen i n the 1961 census. The former (7) i s bounded on the north by the Burrard I n l e t , on the south by F i r s t Avenue, on the east by V i c t o r i a Drive and on the west by Clark Drive. These are the boundaries defined by the United Community Services' Planning Department for the Woodland Park area. Census t r a c t 14 encompasses the area between False Creek and Broadway, Gra n v i l l e and Main Street. These are roughly the boundaries defined by the Vi. C. S. for the Fairview area. According to a concentric zone theory of urban development, these two areas could best be described as part of the "Inner core" of Vancouver. Both are equidistant from the downtown center of the c i t y , both are bounded by i n d u s t r i a l waterways, and by main thoroughfares leading south from the waterfront. This information suggests that the areas have somewhat common c h a r a c t e r i s t i c s ; that they are p a r t i a l l y i n d u s t r i a l i z e d , the rents or housing p r i c e s might be comparatively low and might a t t r a c t people who were seeking cheaper accommodation, or people who want to be near c i t y centre. According to B e l l ' s overview of Metropolitan Vancouver, "the inner core of the C i t y of Vancouver . . . (is) characterized by low l e v e l s of income, occupation and education, and high - 4 -4 concentrations of aged, immigrants and single person households." Using the breakdowns of the census t r a c t s i n t h i s overview, one can outline the eco l o g i c a l c h a r a c t e r i s t i c s of Woodland Park and Fairview under the headings of population c h a r a c t e r i s t i c s , household and family c h a r a c t e r i s t i c s , and labor force c h a r a c t e r i s t i c s . 1- Pppu.lataop Approximately one quarter of the residents l i v i n g i n these areas immigrated to Canada between 1941 and 1961. The Woodland Park Area ranked second highest i n 120 Greater Vancouver census t r a c t s for the percentage of immigrant population. In Woodland Park, I t a l i a n s comprise 15 percent of the t o t a l population while the Chinese make up 12 percent (according to the 1961 census). Both Fairview and Woodland Park have a high frequency of turnover, averaging about 28 percent i n 1961. In both areas, the percentage of the population 65 years and over and the percentage of one-person households was well above the Greater Vancouver average. 2. Household C h a r a c t e r i s t i c s Sixty-one percent and seventy-six percent of the housing stock of t r a c t s 7 and 14 respectively were b u i l t before 1920, giving these areas the s i x t h and t h i r d oldest housing stocks 4 B e l l , L.I., Metropolitan Vancouver . . . . An Overyiew  for S o c i a l Planners. Vancouver, Community Chest and Councils of the Greater Vancouver Area, Feburary, 1965. - 5 -i n Vancouver. Of these homes, an average of about 7 percent need major repairs - once again, a high proportion i n comparison with the r e s t of Vancouver. At the same time, r e l a t i v e l y few of the homes are owner-occupied. Homes i n the Fairview area were 20 percent owner-occupied i n 1961. 3. Labor Force C h a r a c t e r i s t i c s In 1961, a period of recession, t r a c t s 7 and 14 were among the f i v e hardest h i t areas, with 13 percent of the male population i n the former and 17 percent i n the l a t t e r looking for work. The average family wages were among the lowest i n the c i t y , ranking 116 and 117 out of 120 t r a c t s . Twenty one percent of families i n t r a c t 7 and 24 percent of families i n t r a c t 14 were earning less than 2,000 d o l l a r s . Over h a l f the householders i n these areas were primary craftsmen or laborers. From t h i s evidence, we postulated that the sample would be l a r g e l y working class, that there would be a preponderance of household heads working, that there would be a high percentage of senior c i t i z e n s , and that many household heads would be marginally employed and possibly receiving public assistance of some kind. B. Income Adequacy We assumed that a subsistence l i n e can be drawn by t o t a l l i n g a v a r i e t y of e s s e n t i a l and inescapable costs -food, shelter, c l o t h i n g . The data available and the prognostication of others afforded l i t t l e help. The often - 6 -quoted figure of $3,000 for a t y p i c a l family unit could not be accepted because no t y p i c a l family existed. Families come i n a v a r i e t y of numbers and age compositions. Since our population sample f a l l s within the boundaries of a study prepared i n November 1966 by the United Community Services we turned to i t for guidance. The Adequacy of S o c i a l  Assistance Anoyances i n Vancouver provides figures for expenditures i n f i v e areas; rent, u t i l i t i e s , food, clothing and "other" - understood to mean the cost of transportation, personal care, recreation, education and the l i k e . The study based i t s figures for food costs on the Low Cost Food Plan prepared by the N u t r i t i o n Service of the Vancouver Metropolitan Health Service, which i n 1966 established a range of weekly food costs for eleven age l e v e l s ranging from inf a n t to adult. Adjustments were recommended for households of three people or l e s s . The cost of u t i l i t i e s was derived from a s i m i l a r study done i n 1958 with the addition of telephone costs for households of two or more. B.C. Hydro's services have not become more expensive since 1958. Rent or shelter costs i n the study were based on a 1966 sample of 50 families i n the Area Development project; no other data was a v a i l a b l e . The cost of "other" was ascertained by adding 15% of the t o t a l of the previous four categories. The above c r i t e r i a were accepted with the following reservations: 1. Shelter - This figure i s on the low side, but as the only current r e n t a l rates compiled are for purpose-designed apartments i n various parts of the c i t y , i t appeared that the most reasonable way to r e f l e c t an increase would be through a c o s t - o f - l i v i n g adjustment. 2. U t i l i t i e s - The costs of f u e l , wood and o i l (but not e l e c t r i c i t y ) are probably greater than they were i n 1958. This increase should also be considered on a c o s t - o f - l i v i n g index b a s i s . 3. Pood - These cost figures appear r e a l i s t i c and well-founded. 4. Clothing - We wondered about the a r b i t r a r y decision i n the study to adjust downward a l l clothing costs by one-third on the grounds that clothes may be passed on or bought second hand. We were not c e r t a i n that a l l families would behave that way. 5. "Other" - We r e a l i z e d the d i f f i c u l t y i n determining r e a l i s t i c figures for t h i s category. F i f t e e n percent was considered the very minimum which should be added to the budget. To account for i n f l a t i o n i n the period between the pu b l i c a t i o n of the Adequacy Study and the c o l l e c t i o n of the N u l i f e data, we consulted the Consumer Price Index which revealed an increase of about two and one h a l f percent. With these adjustments i n mind, we established the following table, r e f l e c t i n g the monthly per capita incomes of households - 8 -ranging from single person units to units containing f i v e or more people. TABLE 1. INCOME ADEQUACY LEVEL No. IN FAMILY MONTHLY PER CAPITA INCOME 1 TOTAL 1 $ 110 $110 2 $ 90 $180 3 $ 75 $225 4 $ 65 $260 5+ $ 60 $300 C. Education, We a r b i t r a r i l y chose a l i n e between those people who l e f t school a f t e r grade 11 and those who l e f t before. Grade 10 i s recognized as a minimum q u a l i f i c a t i o n for entrance to vocation and tr a i n i n g programs. We w i l l r e f e r then to the terms "limited" and "adequate" education to define these two categories. D. Health The categories we chose to use for our design were those describing conditions of health as stated by the heads of households interviewed. We decided to group " f a i r health" and "good health" into one category and compare t h i s category with that portion of the sample who claimed to be i n "poor health." The health questions required a subjective response - 9 -on the part of the heads of households. E. Other Variables 1. Employment Status - The two categories, working and non-working, were based upon the Nu l i f e question regarding "primary a c t i v i t y . " We chose to define anyone who was r e t i r e d , at school, looking for work or not engaged i n an earning r o l e , as "non-working." 2. Age - We chose the age group of 20 - 59 for the reason that t h i s i s the group which i s expected to be employed. The p o s s i b i l i t y of exclusion of a small group of heads of house-holds over 59 and under 20 i s recognized. 3. M a rital Status - We grouped the eight responses i n the Nul i f e Study into two categories; married and non-married. 4. Number i n Family - Five categories were used, based on number i n household. This i s not a c h i l d - adult breakdown. 5. Income S a t i s f a c t i o n - This r e f l e c t s the response of heads of households garding t h e i r s a t i s f a c t i o n with th e i r e x i s t i n g income. - 10 -CHAPTER II HYPOTHESES We have stated that a typology of poverty w i l l involve an analysis of a number of varia b l e s . We would go on to suggest that the variables themselves have d i f f e r e n t i a l e f f e c t s on income adequacy — that i s to say,, health, education, age or employment status influence l e v e l of income to varying degrees. Consequently, we placed them i n a ranking order of magnitude which was suggested by • the i n i t i a l tabulations. There i s a prevalent c u l t u r a l expectation that i f a person i s working, he i s l i k e l y to have an income which 5 meets h i s basic needs. In our estimation, then, the employment variable was a major determinant of income adequacy. We formulated a b i v a r i a t e model c o r r e l a t i n g employment status of heads of households and adequacy of income. The f i r s t of the four types involved a head of household who was working, but was shown, by our c r i t e r i a , as having an inadequate income. The second type was unemployed and had an inadequate income. The t h i r d household type was employed but would have an adequate income while the fourth was not employed and would have an adequate income. 5 This i s borne out by the f a c t that public assistance rates are no more than the minimum a person might earn i n the labor market. FIGURE 1. Design of the Four Household Types INCOME EMPLOYMENT \ STATUS \ Inadequate Adequate Working Non-working I III II IV Contrary to the c u l t u r a l expectation that a working man can expect to l i v e at a reasonable standard, our i n i t i a l tabulations and our understanding of the sample area pointed out that a number of employed persons were l i v i n g below the subsistence l i n e * Taking the employable age range (from 20 to 59), we hypothesize Hypothesis I A. The majority of heads of households i n the sample area w i l l have an inadequate income, but w i l l be employed. We would claim, that the smallest proportion of the sample w i l l f a l l i n t o Type III and that the largest proportion w i l l f a l l i n to Type I. B. The other two Types, we suggest, w i l l have small but r e l a t i v e l y equal representation. - 12 -We suggest that education w i l l be the most s i g n i f i c a n t v a r i a ble after employment status. Over the past two/decades, access to the labor market has become increasingly dependent on higher adademic q u a l i f i c a t i o n s . Hypothesis II A. The lack of educational q u a l i f i c a t i o n reduces earning capacity. B. The majority of those with l i m i t e d education i n the sample w i l l f a l l i nto Types I, II and IV, with a concentration i n Type I I . C. Those i n Type III w i l l have, on the whole, an adequate education. The age factor, i n our ordering of variables, would have the t h i r d greatest influence on income adequacy. This influence may be d i r e c t or i n d i r e c t ; by d i r e c t , we mean that retirement age brings with i t a withdrawal (either voluntary or enforced) from the labor market. By i n d i r e c t , we mean that age factor i s c l o s e l y t i e d to other v a r i a b l e s . For example, the educational requirements of t h i r t y years ago permitted i n d i v i d u a l s to leave school at an early age and s t i l l be assured of a job. These persons may now have d i f f i c u l t y competing i n the present market and d i f f i c u l t y i n entering - 13 -r e t r a i n i n g programs. Moreover, i f t h i s assessment i s correct, i t p a r t i c u l a r l y a f f e c t s the sample areas, where, according to the 1961 Census Tracts, over 30% of the household heads were over age 55. Hypothesis III A. A majority i n Types I and III w i l l be younger, (we set the range 20 to 59) because they are employed. Type III i n p a r t i c u l a r would be the youngest segment because of i t s a b i l i t y to compete for jobs which (1) pay an adequate income, and (2) require heavy manual labor. The i n i t i a l tabulation of data demonstrated that health was the l e a s t s i g n i f i c a n t of our v a r i a b l e s . Hypothesis IV Heads of households who have health problems w i l l be contained i n groups II and IV. We f e e l here that poor health would be r e f l e c t e d i n lack of employment. To provide a control variable to our study, we analyzed the data pertaining to income s a t i s f a c t i o n . By doing so, we could measure our l i n e of adequacy again and t h e . f e l t need of the household heads. Hypothesis V A. The majority of persons i n the groups with inadequate income w i l l be d i s s a t i s f i e d with t h e i r income l e v e l . - 14 -B. At the same time. Type I I I , w i l l be d i s s a t i s f i e d , possibly because the persons i n the group are l i v i n g i n a low rent area i n order to save for purchase of homes elsewhere. - 15 -TABLE 2 - INITIAL FINDINGS TYPE TYPE TYPE TYPE A* I B** A II B A III B A IV B Percent of Total N-845 % No. % No. % NO. % No. 46 386 16 140 6 47 32 272 Adequate Education 35 130 373 23 32 138 20 _9 45 18 46 259 AGE (20-59) 87 334 382 43 60 138 89 11 46 60 165 272 HEALTH (GOOD) 98 380 386 86 118 137 100 47 47 83 224 267 SATISFACTORY INCOME 63 232 369 44 60 135 41 19 46 20 52 256 SEX MALE 66 254 382 53 73 137 65 30 46 35 94 268 NO. IN HOUSEHOLD over 2 66 204 383 25 34 138 77 36 47 36 99 272 MARRIED 66 254 382 53 73 137 65 30 46 35 94 268 2 X P > .05 * Column A - Percentage of t o t a l for each v a r i a b l e . **Column B - Number of responses for each variable over t o t a l number of responses, minus the no response. I S * 1 -F /< •-a 1 , W 1 MS C r>c F ?/= rv/ 9o // / / \ VO . /A \ / / / / / \ i I \ 1 \ 7o . \ \ V \ \ / if •\ \ \ / \ • \ \ / t l \ \ An / ' \ / / A n \\ // \ s Pi SRC P. I\f r / // \ ' / > I \ • 1 > r L •\V 1 / j \ \ \ . 1 i \ 1 / // \ \ II ' //• / j 1 \\ 1 II * \ \ \ > II \\ ! \ • V \ i ItEJtLTh J hi *CTC A.Y II 1 • Mow<£ X, rv r If DA K" / / - ; £ r v rr NOW- WCA >•. " we • ' • — — - /< r e ;K/cc nr. ON — (/ INC > — : n - IS -CHAPTER III Study Findings The data revealed that, i n accordance with our f i r s t hypothesis, a high proportion of employed people did not have adequate incomes. Type I formed a s u r p r i s i n g l y large proportion of the sample, numbering 386 households out of the t o t a l of 845. In comparison, the working group with an adequate income (Type III) numbered 47. Type IV, composed of i n d i v i d u a l s not working, but who had adequate incomes, formed the second lar g e s t segment, contradicting our hypothesis that i t would be a r e l a t i v e l y small portion. The most s i g n i f i c a n t findings i n t h i s area showed that the number of household heads working i n the t o t a l sample was 433, about h a l f the t o t a l . However, the number l i v i n g at a subsistence l e v e l was 526, about 62% of the t o t a l . Though these findings tend to negate the influence of employment status on income l e v e l , the s t a t i s t i c a l analysis proves otherwise. S i m i l a r l y , we found that education l e v e l i s r e l a t e d to the other va r i a b l e s . Once again, however, the r e l a t i o n s h i p was not as strong as anticipated when correlated with income adequacy. Type I I I , expected to have a comparatively high l e v e l of education, proved to have the second lowest. True - 17 -to our hypothesis, the bulk of those people with l i m i t e d education f e l l i nto Type I I , i n which 77% had l e f t school before grade 11. In studying the findings on the age f a c t o r , we discovered that our hypothesis were confirmed. Of the 255 household heads i n the sample over age 60, 71 f e l l i nto Type I I , which had the highest percentage of any group. We should note that Type IV also contained a concentration of e l d e r l y persons s(36% of the group). Type I I I , did contain a high proportion of younger people under 59. The o v e r - a l l health of a l l four types was good, affirming the r e s u l t s of the i n i t i a l tabulations. Possible reasons for t h i s might l i e i n r e l a t i v e l y comprehensive insurance and h o s p i t a l i z a t i o n schemes. Our hypothesis with regard to income s a t i s f a c t i o n were only p a r t i a l l y confirmed. The responses of two groups did not follow the pattern we had anticipated. Whereas we f e l t that groups with inadequate incomes would be d i s s a t i s f i e d , the majority of group Type I claimed i t was s a t i s f i e d . Conversely, a small majority of Type IV expressed d i s s a t i s f a c t i o n with an income which we defined as adequate. In addition to the findings r e l a t e d to our hypothesis, we also obtained the following information as a guide i n using the study findings. Type I The heads of households were predominantly male (88%) and married (67%) • S l i g h t l y more than h a l f the households consisted of more than two persons. Type II The heads of households were predominantly male (72%) and married (53%). One quarter (25%) of the households contained more than two persons, suggesting that a majority of the group l i v e d i n single person or two person households. The figures on unemployment showed that 45% of the segment was r e t i r e d and that 24% were looking for work. Type III The household heads were la r g e l y male and married, 65%. Seventy six percent of the households contained more than two persons. Type IV S l i g h t l y over one h a l f of t h i s group had male heads of household but a smaller proportion of these heads were married. In Type IV, about one t h i r d had more than two persons per household. Thirty-one percent of the group was r e t i r e d and 28% were looking for work. A. S t a t i s t i c a l Analysis Table JJ, provides the r e s u l t s of the s t a t i s t i c a l analysis u t i l i z i n g the s t a t i s t i c a l measures of c h i square and the contingency c o e f f i c i e n t . Having only categorical (nominal scale) information about the variables, the c h i square s t a t i s t i c a l t e s t was used to determine the l e v e l of s i g n i f i c a n c e . To determine the strength of t h i s r e l a t i o n s h i p we employed the 6 contingency c o e f f i c i e n t (C). According to Siegel, "The upper l i m i t for the contingency c o e f f i c i e n t i s a function of the number of categories ... the upper l i m i t of C for a 2 x 2 table isVh = .707". I t w i l l be noted from our table that the highest r e l a t i o n s h i p (C = .49) existed between employment status and adequacy of income. 6 Siegel, S. Nonparametric S t a t i s t i c s for the Behavioral Sciences. McGraw H i l l Book ed Inc. New York, 1956. pp.196-202 7 Siegel, S. Ibid, p.201. - 201 -TABLE 3 CHI SQUARE AND CONTINGENCY COEFFICIENT VALUES VARIABLES df TABLED VALUE X 2 OBTAINED X 2 • CONTINGENCY COEFFICIENT Employment Status vs Adequacy of Income 1 3.84 273.6 .49 Health vs Employ-ment status 1 3.84 40. .25 Health vs Adequacy 1 3.84 31.4 .22 Education vs Adequacy 1 3.84 14.2 .15 Education vs Employment 1 3.84 9.5 ' .13 Health vs Education 1 3.84 28.6 .11 Health vs Types 1,11,III,IV 3 7.82 63.2 -Education vs Types I,II,III,IV 3 7.82 15.3 -X 2 P > .05 CHAPTER IV CONCLUSIONS Concern about poverty i s nothing new. The l i t e r a t u r e i s substantial - but often deals with the poverty problem i n either o v e r g e n e r a l i z e d terms, or loses perspective i n attempting to study narrow segments of poverty pockets. Our findings suggest that people l i v i n g i n low - income areas cannot be stereotyped. We expected to f i n d that a large percentage of the sample would have an inadequate income. We d i d - 62% of the population were below our defined adequacy l e v e l * However, our investigation of the r e l a t i o n -ship between the socio-economic factors and unemployment,, poor health and l i m i t e d education showed a low l e v e l of c o r r e l a t i o n i n some areas. Type IV, the second lar g e s t group i n the sample, demon-strated that a high proportion of unemployed people have adequate incomes. Since we had placed our l i n e of income adequacy above the rates offered by public welfare agencies, we must assume that these perons were receiving income from sources other than wages and s a l a r i e s . We speculated that these sources were probably transfer payments, other than o p u b l i c welfare, or income from enterpreneurial a c t i v i t x e s . 8 Enterpreneurial a c t i v i t y i s suggested by the e c o l o g i c a l study which shows that a high proportion of residents i n the study areas rent accommodation, and that a number of owners are also landlords. - 22 -Type I, the largest group i n the sample, was composed of i n d i v i d u a l s who were working, but who had an inadequate income. Indeed, t h e i r incomes f e l l beneath a l i n e of adequacy only marginally above present welfare rates. This fi n d i n g has some implications for present wage rates i n businesses which employ a high proportion of primary craftsmen and labourers. The f a c t , that Type !I was l a r g e l y s a t i s f i e d with i t s income l e v e l may have some significance here. Then too, the c h a r a c t e r i s t i c s of both Types (I and IV) cast some doubt on the idea that employment status i s a major determinant of adequate income l e v e l . Although the c o r r e l a t i o n between the two factors shows that there i s a d e f i n i t e r e l a t i o n s h i p , i t was not as strong as we had anticipated. One of the most s t r i k i n g findings was the head of households general good health. While we recognized, the imprecise nature of the question, we were nevertheless impressed by-the high proportion of p o s i t i v e responses. I f indeed health i s uniformly good i n the sample areas as our findings suggest, then the health factor does not play as important a r o l e i n the typology of poverty as we had expected. This suggests that as health programs become more comprehensive and more e f f e c t i v e , the factor of poor health has l e s s bearing on i n d i v i d u a l s ' access to employment. At the same time i t i s s i g n i f i c a n t to note that of the 29 heads of households who claimed to be i n poor health. 24 f e l l i n t o Type IV. The findings can o f f e r few explanations for t h i s s i t u a t i o n , except perhaps the statement that 36% of t h i s type were over age 60. On the other hand, the e l d e r l y i n Type I I , who were l i v i n g on inadequate incomes, claimed to be i n better health. For the largest proportion of the sample, the l e v e l of education had a s i g n i f i c a n t r e l a t i o n s h i p with employment status and adequacy of incomes. This finding was based on a school leaving l e v e l which could be assessed as high by some standards, but not-by present day requirements for entrance to the labour market, vocational schools or other types of t r a i n i n g . However, the majority of Type I I I , admittedly a very small part of the sample, was making an adequate income through employment without having an adequate education. Although t h i s would tend to challenge the hypothesis that education i s a c r u c i a l variable, we must note that our study did not take into account on-the-job t r a i n i n g , or the f a c t that educational requirements have increased i n the past two decades, since the older segment of the group entered the labour market. Nonetheless, i t i s appropriate to question here the a c c e s s i b i l i t y of higher education to low-income groups. The findings revealed that about 30% of the heads of households were over 59 years of age, with heavy concentrations of aged i n Types II and IV. Although we focused on the 20 to 59 age range, i t i s s i g n i f i c a n t to note that the 62 r e t i r e d -24 -heads of households i n Type II were l i v i n g at a subsistence l e v e l . This suggests that o l d age security payments and supplementary assistance grants do not cover the basic requirements for some of these people. When we compared our l i n e of income adequacy to the control variable of income s a t i s f a c t i o n , we found that only Type I was s a t i s f i e d l i v i n g below our adequate income l i n e . This suggests that i n d i v i d u a l s i n t h i s group had adjusted t h e i r l i f e patterns around a low income l e v e l , or f e l t that the f a c t that they were working f u l f i l l e d the normative r o l e expectations of society. We were not surprised to f i n d that the other three groups f e l t they needed higher incomes; our adequacy l i n e was very low. Present welfare programs, designed to a l l e v i a t e poverty, often consider only one facet i n the network of variables we have outlined. The Manpower program, i f administered i n the s p i r i t of the Act which established i t , i s one attempt to attack a number of components i n the poverty cycle by providing jobs and the necessary t r a i n i n g to meet job requirements. However, a job does not guarantee an adequate income. The need for a more comprehensive e f f o r t to e s t a b l i s h minimum wage guarantees, or a minimum standard of l i v i n g would seem to be one major implication of our findings. However, our study was - 25 -not extensive enough to enable us to draw a d e t a i l e d l i s t of recommendations for s o c i a l p o l i c y makers. Rather, our findings are only one step i n establishing the component unit s and t h e i r r e l a t i v e importance i n the poverty cycle. Each Household Type we have outlined, and the significance of the variables we have used must be l e f t open to further study before a comprehensive typology of poverty can be determined. At the same time, we r e a l i z e we are dealing with a dynamic element - with a group which cannot be stereotyped and with variables which might change with fluctuations i n the economic and s o c i a l systems. We hope t h i s study w i l l provide a frame of reference for future research which might enhance the understanding of poverty, for both the s o c i a l l e g i s l a t o r s , and t h e i r e l e c t o r s . - 26 -BIBLIOGRAPHY A. BOOKS. 1. Goldstein, Harris K. Research Standards and Methods for Soc i a l Worker. The Hanser Press, New Orleans.1963. 2. Polansky, Norman A. S o c i a l Work Research. University of Chicago Press, 1960. 3. Siegal, Sidney. Nonparametric S t a t i s t i c s For the Behavioral Sciences. McGraw-Hill Book Company, Inc., New York, 1956. B. PUBLICATION OF THE GOVERNMENT, LEARNED SOCIETIES, AND OTHER ORGANIZATIONS. 4. Urban Low-Income Family Evaluation, Research Manual. Canadian Welfare Council, Ottawa. 5. Dominion Bureau of S t a t i s t i c s , Census of Canada 1961, Ottawa. Dominion Bureau of S t a t i s t i c s , 1963. 6. Irelan, Lola M. E d i t o r . Low Income L i f e S tyles. U.S. Department of Health, Education, and Welfare, 1966. Chapter 4. 7. P a l t i e l , F.L., e t . a l , Ppverty; An Annotated Bibliography Reference. Canadian Welfare Council, Ottawa, 1966. 8. Assistance Allowances i n Greater Vancouver. United Community Services, Vancouver, 1966. 9. Woodsworth, S.E., e t . a l . Urban Need i n Canada. A case Report on the Problems of Families i n Four Canadian  C i t i e s . Canadian Welfare Council, Vo. I, I I , I I I , IV. Ottawa. November, 1965. 10. B e l l , L.I. Metropolitan Vancouver. . . An, Overview for S o c i a l Planners. Vancouver, B.C. Community Chest and Councils, Feburary, 1965. C. PERIODICALS 11. Herzog, Eli z a b e t h . "Some Assumptions about the Poor." So c i a l Service Review. V o l . 36, No. 4. December, 1963. 12. Orshansky, M o l l i e . "Counting the Poor: Another Look at the Poverty P r o f i l e . " S o c i a l Security B u l l e t i n . V o l . 28, No. 1. January, 1965. - 27 -13. Orshansky, M o l l i e . "Who's Who Among the Poors A Demographic View of Poverty." Social Security B u l l e t i n . V o l . 28, No. 7. July, 1965. 14. Rein, Martin. "Social Research and the Elimination of Poverty." Journal of American I n s t i t u t e of Planners. V o l . 33, No. 3. May, 1967. D. ARTICLES IN COLLECTIONS. 15. Glazer, Nathan. "A Sociologist's View of Poverty." In Gordon, Margaret S. E d i t o r . Poverty i n America f Chandler Publishing Company, San Francisco. 1965. pp. 12 - 26 16. Gordon, R.A. "An Economist's View of Poverty." In Gordon, Margaret S. E d i t o r . Poverty In America. Chandler Publishing Company, San Francisco. 1965. pp. 12 - 26 17. Hauser, P h i l i p , and Wirth, Mary. "Relocation - Opportunity or L i a b i l i t y ? " In Gordon, Margaret S. E d i t o r . Poverty i n America. Chandler Publishing Company, San Francisco. 1965. 18. Rice, Ann Smith. "An Economic Framework for Viewing the F a m i l y I n Berardo, F e l i x M. and Nye, F. Ivan. E d i t o r s . Emerging Conceptual Frameworks i n Family Analysis. The McMillan Company, New York, 1966. 

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