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Unformatted text preview: Gaurav Singh Poverty in the US Midterm Review Sheet Restricted Opportunity- the restricted opportunity theories contend that the poor lack sufficient access to economic opportunities and cannot avoid poverty unless their economic opportunities improve. lack access to schools, programs, knowledge cyclical impoverishment may result from circumstances beyond the control of the individual restricted opportunity theory states that the poor are poor because they do not have adequate access to good schools, jobs, and income. they are discriminated against on the basis of race, sex, or income class. As a result, they cannot get the education, the jobs, or the housing they need to get ahead. even government services denied them. They do not get adequate police protection; they get few tax breaks; and they are denied more mainstream public services (transportation services, street repair, public facilities) in the face of these external barriers, no amount of work ethic or effort assures escape from poverty basic implication of argument=improved opportunities are needed if the number of people in poverty is to be reduced this view took place after the Great Depression when millions fell to unemployment. only when millions of responsible and hard working people faced poverty, did people begin to view poverty as being outside the control of the individual Human Capital- human capital theory is a theory of earnings, one of the major determinants of poverty. First developed by Becker and Mincer, this theory explains both individuals decisions to invest in human capital (education and training) and the pattern of individuals' lifetime earnings. Individuals different levels of investment in education and training are explained in terms of their expected returns from the investment. Investments in education and training entail costs both in the form of direct expenses (e.g., tuition) and foregone earnings during the investment period, so only those individuals who will be compensated by sufficiently higher lifetime earnings will choose to invest. People who expect to work less in the labor market and have fewer labor market opportunities, such as women or minorities, are less likely to invest in human capital. As a result, these women and minorities may have lower earnings and may be more likely to be in poverty. Poverty Gap- the average shortfall of the total population from the poverty line. This measurement is used to reflect the intensity of poverty. The poverty line that is used for measuring this gap is the amount typical to the poorest countries in the world combined with the latest information on the cost of living in developing countries....
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This note was uploaded on 01/17/2012 for the course HISTORY 104 taught by Professor Reed during the Fall '11 term at Rutgers.
- Fall '11