Racial Differences in the Feminization of Poverty

The feminization of poverty refers to female householders and their children becoming an increasing percentage of the poor population. After examining effects of race on poverty of female-headed households from 1959 to 1989, this study investigates statistical relationships among female poverty, economic and labor market conditions, and transfer payments (specifically AFDC) by means of the Granger causality test over the period from 1966 to 1988. This study reinforces the plausible assumption that policies which would lower the unemployment rate of females and would increase real economic growth could be expected to reduce the number of poor female households.