scholarly journals Head Start and Families’ Recovery from Economic Recession: Policy Recommendations for COVID-19

2020 ◽  
Author(s):  
William Scarborough ◽  
Caitlyn Collins ◽  
Leah Ruppanner ◽  
Liana Christin Landivar

Objective: This article examines whether the availability of Head Start during the Great Recession mitigated the impact of this crisis on poverty rates among families with young children.Background: The first two decades of the 21st century have witnessed two major economic crises: the Great Recession and the COVID-19 pandemic. Poverty rates among families with young children grew substantially during the Great Recession. Families with young children are also more vulnerable to instability during the COVID-19 pandemic as job losses have been steeper and childcare availability has been significantly curtailed. Programs like Head Start that support at-risk families may mitigate such negative consequences.Method: This study uses data from the American Community Survey from 2006 through 2016 and state-level data on Head Start availability from Program Information Reports. Growth curve modeling is used to examine how the availability of Head Start predicted poverty growth during the Great Recession and the speed of recovery post-recession.Results: States with higher rates of Head Start enrollment had a smaller increase in family poverty during the Great Recession and a more stable recovery than states with lower Head Start enrollment.Conclusions: These findings suggest that greater access to Head Start programs prevented many families from falling into poverty and helped others exit poverty during the Great Recession.Implications: The findings provide clear, evidence-based policy recommendations. Increased federal funding for Head Start is needed to support families during a COVID-19 recession. States should supplement these allocations to expand Head Start enrollment for all eligible families.

Author(s):  
Emile Cammeraat ◽  
Egbert Jongen ◽  
Pierre Koning

AbstractWe study the impact of mandatory activation programs for young welfare recipients in the Netherlands. What makes this reform unique is that it clashed head on with the Great Recession. We use differences-in-differences and data for the period 1999–2012 to estimate the effects of this reform. We find that the reform reduced the number of welfare recipients but had no effect on the number of NEETs (individuals not in employment, education or training). The absence of employment effects contrasts with previous studies on the impact of mandatory activation programs, which we argue is due to the reform taking place during a severe economic recession.


2015 ◽  
Vol 15 (1) ◽  
Author(s):  
Bruno Albuquerque ◽  
Ursel Baumann ◽  
Georgi Krustev

AbstractThe balance sheet adjustment in the household sector was a prominent feature of the Great Recession that is widely believed to have held back the cyclical recovery of the US economy. A key question for the US outlook is therefore whether household deleveraging has ended or whether further adjustment is needed. The novelty of this paper is to estimate a time-varying equilibrium household debt-to-income ratio determined by economic fundamentals to examine this question. The paper uses state-level data for household debt from the FRBNY Consumer Credit Panel over the period 1999Q1–2012Q4 and employs the Pooled Mean Group (PMG) estimator developed by Pesaran, Shin, and Smith (1999), adjusted for cross-section dependence. The results support the view that, despite significant progress in household balance sheet repair, household deleveraging still had some way to go as of 2012Q4, as the actual debt-to-income-ratio continued to exceed its estimated equilibrium. The baseline conclusions are rather robust to a set of alternative specifications. Going forward, our model suggests that part of this debt gap could, however, be closed by improving economic conditions rather than only by further declines in actual debt. Nevertheless, the normalisation of the monetary policy stance may imply challenges for the deleveraging process by reducing the level of sustainable household debt.


2017 ◽  
Vol 18 (5) ◽  
pp. 548-567 ◽  
Author(s):  
James Windle

This article analyses 10 years (2004–2014) of An Garda Síochána controlled drug data to investigate the impact of economic recession and globalization on the Irish illicit drug market. The limited international literature on recessions and drug markets suggests that economic downturns can increase both drug consumption and dealing. Gardaí data may, however, suggest that the 2008 Great Recession reduced drug use and dealing, yet increased the cultivation and manufacture of drugs: trends which largely conflict with the international literature. Two testable hypotheses are drawn from the data: (1) net consumption and trade of illicit drugs were reduced by emigration triggered by the Great Recession; (2) the Great Recession forced an adaptation in the market which sped up the process towards import substitution of cannabis cultivation. The article concludes by investigating how recent changes highlight the globalized nature of Irish drug markets before proposing avenues for further research.


2019 ◽  
pp. 089590481988116
Author(s):  
Walker A. Swain ◽  
Christopher Redding

In the wake of the 2007 housing crash and subsequent economic recession, state legislatures across the country faced substantial declines in revenues, and by 2011, for the first time in more than a decade, average spending on education declined. However, states’ budgetary responses to the Great Recession were decidedly uneven, with some making lasting cuts to public education. This article uses longitudinal data on state-level educational spending, politics, demographics, economic well-being, and a unique set of union strength indicators to assess the strength of teachers’ unions as advocates for education spending by examining their role in states’ varied budgetary responses to the Great Recession. We find that states with laws prohibiting collective bargaining for teachers and states with lower union dues per teacher made substantially larger cuts to overall educational expenditures, even after controlling for time-invariant state characteristics, secular trends, and an extensive set of time-variant state-level covariates.


2017 ◽  
Vol 14 (02) ◽  
pp. 103-110
Author(s):  
S. Tomassi ◽  
M. Ruggeri

Summary Background: The global crisis that began in 2007 has been the most prolonged economic recession since 1929. It has caused worldwide tangible costs in terms of cuts in employment and income, which have been widely recognised also as major social determinants of mental health (1, 2). The so-called “Great Recession” has disproportionately affected the most vulnerable part of society of the whole Eurozone (3). Across Europe, an increase in suicides and deaths rates due to mental and behavioural disorders was reported among those who lost their jobs, houses and economic activities as a consequence of the crisis.


2020 ◽  
Vol 51 (1) ◽  
pp. 1-26
Author(s):  
Tobias Arnold ◽  
Sean Mueller ◽  
Adrian Vatter

Abstract Over the past decades, decentralization has become the new paradigm in how states should organize power territorially. Carefully planned institutional re-designs are the most visible expression thereof. Yet the Great Recession of 2007–2009 has pushed governments into the opposite direction, i.e., towards centralization, to better weather the fiscal drought. Given these contradictory developments, this article compares the effects of twenty-three separate state reforms with the impact of the Great Recession on fiscal centralization in twenty-nine countries over more than two decades. In the main, our analyses attribute a larger effect to design, i.e., pro-active policy making through reforms, than reactive crisis management after a great shock. However, this difference is only apparent once we consider a state’s institutional structure, that is whether a political system is unitary or federal. Our findings thus highlight the need for a multidimensional approach to better understand the drivers of fiscal de/centralization.


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