A study published in the Cambridge Journal of Regions, Economy and Society asks the fundamental question of why the economy’s equilibrium mechanisms have thus far failed to lift communities out of persistent poverty. The author theorizes that areas suffering from persistent poverty exhibit disconnection from the broader economy. Specifically, the author posits that disconnectedness in terms of commuting patterns, social networks, and job growth explains why persistent poverty is so entrenched and difficult to resolve.
The author presents evidence that persistent poverty census tracts in Chicago are uninvolved in the predominant commuting patterns in the city, which see large flows of residents into downtown and a handful of other employment centers. Of the 360 tract pairs with the largest commuter flows in Chicago, only 26 are from persistently poor census tracts, or 7% of the total. The author points out that similar patterns are found across the country where persistent poverty communities are excluded from the commuting patterns that define the rhythm of economic life in metro areas.
The study cites research from Opportunity Insights into Facebook friend networks to measure the extent of social connectedness of low-socioeconomic status (SES) families and children to high-SES families. Based on an analysis of the data, 52% of persistent poverty counties fall into the bottom quintile for childhood economic connectedness. For adults, 64% of persistent poverty counties fall into the bottom quintile on overall economic connectedness. Meanwhile, 66% of persistently poor counties rank in the bottom quintile on exposure to friends who are high-SES.
Data presented in the study show strong national job growth since the mid-1980s alongside a clear stagnation in employment in persistent poverty counties. Employment across these counties stagnated for the entirety of the 2000s, and by 2019, persistent poverty areas had only just recovered their jobs losses from the Great Recession, while employment nationwide was already 10% above its prior peak. Indeed, the recovery from the Great Recession proceeded less than half as quickly in persistent poverty counties as it did nationwide.