Determinants of Young Adult Poverty: A ZIP Code Level Analysis

• Main Author: Misra, Kaustav
• Format: Others
• Published: UKnowledge 2007
• Subjects: young adult|Kentucky|ZIP Code|poverty|Gini coefficient
• Online Access: http://uknowledge.uky.edu/gradschool_theses/436; http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1439&context=gradschool_theses

The war on poverty started in America in the early 1960s, and the poverty rate of 22.4 percent in the year 1959 decreased to 11.1 percent in 1973. Regrettably, this war did not last long enough, as poverty rate increased to 15.1 percent in 1993. In the year 2000 the US poverty rate declined, but always stayed above 11.1 percent. Kentucky also did not achieve success in this poverty war, and it resulted in growing numbers of poor people. Analysis of poverty has always aroused the interest of economists, sociologists and policy makers. Goal of this paper is to intricate appropriate strategies and invent effective prevention efforts to eradicate the young adult poverty. Estimation of Gini coefficients for various age groups indicates that the young adult population of Kentucky is at risk. The purpose of this paper is to determine the factors of young adult poverty, employing ZIP Code data in Kentucky. Data analysis reveals that rural young adults are more vulnerable than urban young adults in Kentucky. Some significant factors such as; male and female educational level, presence of minorities and type of employment are the primary determinants of poverty for this age group. Analysis of outcomes leaves suggestions for the policy makers to exterminate young adult poverty from Kentucky.