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Inner-City Poverty in the United States Laurence E. Lynn, Jr., and Michael G.H. McGeary, Editors Committee on National Urban Policy Commission on Behavioral and Social Sciences and Education National Research Council NATIONAL ACADEMY PRESS Washington, D.C. 1990

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National Academy Press . 2101 Constitution Avenue, N.W. . Washington, D.C. 20418 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of membem of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The work that provided the basis for this document was supported by funding under a contract with the U.S. Department of Housing and Urban Development. The substance and findings of that contract work are dedicated to the public. The author and publisher are solely responsible for the accuracy of statements or interpretations in this document. Such interpretations do not necessarily reflect the views of the government. Library of Congress Catabging-in-Publication Data Inner-City poverty in the United States / Laurence E. Lynn, Jr., and Michael G.H. McGeary, editom. p. cm. Includes bibliographical references and index. ISBN 0-309-04279-8 1. Urban poor United States. ~ Urban poor Government poligy United States. 3. Inner cities-United States. 4. Inner cities Government polisher United States. I. Lynn, Laurence E., 1937 II. McGraw, Michael G.H. HV4045.I56 1990 362.5'0973'09173~dc20 Copyright (if) 1990 by the National Academy of Sciences 90~5776 CIP No part of this book may be reproduced by any mechanical, photographic, or electronic process, or in the form of a phonographic recording, nor may it be stored in a retrieval system, transmitted, or otherwise copied for public or private use, without written permission from the publisher, except for the purpose of official use by the United States government. Printed in the United States of America Cover: Photograph by Jim Hubbard.

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COMMITTEE ON NATIONAL URBAN POLICY LAURENCE E. LYNN, JR. (Chair), School of Social Service Administration, University of Chicago ROY W. BAHL, Maxwell School, Syracuse University MARY JO BANE, Malcolm Weiner Center for Social Policy, John F. Kennedy School of Government, Harvard University ROBERT B. CERVERO, Department of City and Regional Planning, University of California, Berkeley GREGORY L. COLER, Florida Department of Health and Rehabilitative Services, Tallahassee MARGARET T. GORDON, Graduate School of Public Affairs, University of Washington THOMAS KLUTZNICK, Miller-Klutznick-Davis-Gray Co., Chicago HERMAN B. LEONARD, John F. Kennedy School of Government, Harvard University WILLIAM C. McCREADY, Public Opinion Laboratory and Department of Sociology, Northern Illinois University SYLVESTER MURRAY, State and Local Government Consulting Division, Coopers & Lybrand, Columbus ELINOR OSTROM, Workshop in Political Theory and Policy Analysis and Department of Political Science, Indiana University PAUL E. PETERSON, Department of Government, Harvard University JOHN M. QUIGLEY, Graduate School of Public Policy and Department of Economics, University of California, Berkeley FRANKLIN D. RAINES, Lazard Freres ~ Co., New York MICHAEL G. H. McGEARY, Study Director (until September 1988) . . . 111

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The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Frank Press is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Robert M. White is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences lay its congressional charter to be an advisor to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Samuel O. Thier is president of the Institute of Medicine. The blational Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined lay the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert M. White are chairman and vice chairman, respectively, of the National Research Council. lV

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Contents PREFACE SUMMARY 1 INTRODUCTION GHETTO POVERTY: BASIC QUESTIONS Paul ~ Jargowsly and Mary Jo Bane . . V11 1 7 16 HOW POVERTY NEIGHBORHOODS ARE CHANGING 68 John C. Weicher 4 THE SOCIAL CONSEQUENCES OF GROWING UP IN A POOR NEIGHBORHOOD Christopher Jencks and Susan E. Mayer RESIDENTIAL SEGREGATION, JOB PROXIMITY, AND BLACK JOB OPPORTUNITIES Christopher Jencks and Susan E. Mayer 6 GHETTO POVERTY AND FEDERAL POLICIES AND PROGRAMS Michael McGeary 7 CONCLUSIONS INDEX v 111 187 223 253 271

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CONTRIBUTORS MARY JO BANE, Malcolm Wiener Center for Social Policy, John F. Kennedy School of Government, HaIvard University PAUL ~ JARGOWSKY, Malcolm Wiener Center for Social Policy, John F. Kennedy School of Government, Harvard University CHRISTOPHER JENCKS, Center for Urban Affairs and Policy Research, Northwestern University SUSAN E. MAYER, Center for Urban Affairs and Poligy Research, Northwestern University MICHAEL G.H. McGEARY, National Research Council, Washington, D.C. JOHN C. WEIGHER, Office of Poligy, Development and Research, U.S. Department of Housing and Urban Development V1

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Preface The Committee on National Urban Policy was established by the National Research Council at the end of 1985 at the request of the U.S. Department of Housing and Urban Development and the other federal agencies that contribute to the biennial President's Report on National Urban Policy: the U.S. Department of Health and Human Services, the U.S. Department of Labor, the Urban Mass Transportation Administration, and the Economic Development Administration. The committee was asked, over a three-year period, to describe the uncertainties facing cities and their economies and populations; identify the urban policy issues facing state, local, and federal policy makers; and assess possible policy responses at each level of the intergovernmental system. With the encouragement of its federal sponsors, the committee first undertook to examine closely and carefully the most recent information on the underlying demographic, social, economic, and political trends shaping urban conditions. The results of that examination-eight authored papers and a brief committee report were published in 1988 by the National Academy Press in a volume entitled Urban Change and Poverty. The present volume represents the committee's efforts to address the main conclusion reported in the earlier volume, namely, that the phe- nomenon of increasing poverty concentration in inner-city neighborhoods was the most important national urban policy issue meriting the further attention of the committee. Accordingly, the committee began a series of meetings on concentrated urban poverty during the course of which it was decided to invite a small number of scholars (including two committee members) to address in some depth questions that arose in studying the extent, causes, consequences, and implications for public policy of concentrated urban poverty. After . . V11

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. . VU1 PREFACE reflecting at length on the resulting papers as well as on other relevant literature, the committee has prepared the present volume, which incorpo- rates the scholarly papers into a report of its deliberations, findings, and conclusions. Among those who warrant special appreciation for their efforts on behalf of this project are Kenneth J. Beirne, John P. Ross, and George Wright of the U.S. Department of Housing and Urban Development; James Dolson of the U.S. Department of Health and Human Services; Beverly Milkman and David Geddes of the Economic Development Ad- ministration; and Fred Williams and Kenneth Bolton of the Urban Mass Transportation Administration; the committee is grateful for the informa- tion, support, and encouragement they provided. The committee would also like to thank Michael G.H. McLean, the committee's study director until September 1988, who organized the committee's activities, prepared extensive literature surveys, oversaw the preparation of the papers, wrote one of them, and prepared much draft material for chapters 1, 2, and 7, and gave the manuscript a final critical review; Christine McShane, editor of the Commission on Behavioral and Social Sciences and Education, who with freelance editors Jean Shirhall and Sherry Snyder edited the volume and prepared it for production; Mary Jo Bane and Paul Jargowsky, who provided valuable advice and assistance during the final stages of manu- script preparation; and the other authors, who submitted patiently to the publication process. The committee is grateful for the support of the staff of the Commis- sion on Behavioral and Social Sciences and Education, including executive director Suzanne H. Woolsey and associate director for reports Eugenia Grohman. Finally, I would like to thank the committee members for their invalu- able contributions in planning and participating in the activities leading up to the publication of this volume. LAURENCE E. LYNN, JR., Chair Committee on National Urban Policy