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SWRK 626
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SWRK 626 David Rothwell Nov 8 2012 Week 10 Assets
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SWRK 626. David Rothwell Nov 8 2012 Week 10 Assets. Class warm up. On a piece of paper, respond to the two questions below: 1. What is social capital to you? - PowerPoint PPT Presentation
Transcript of SWRK 626
SWRK 626
David RothwellNov 8 2012
Week 10 Assets
Class warm up
On a piece of paper, respond to the two questions below:1. What is social capital to you?2. How useful is social capital for intervention to reduce poverty? E.g., would you recommend it for your poverty manifesto? Explain.
Review
• What is the function/utility of income?
An exercise
Rawlsian veil of ignorance (1971)• “in considering this question, imagine that if
you joined this nation, you would be randomly assigned to a place in the distribution, so you could end up anywhere in this distribution, from the very richest to the very poorest” (p. 5, Norton and Ariely, 2011).
Assets, aka wealth
• “wealth, also known as net worth, is defined as the total value of everything someone owns minus any debt that he or she owes. A person’s net worth includes his or her bank account savings plus the value of other things such as property, stocks, bonds, art, collections, etc., minus the value of things like loans and mortgages”. (p. 4, Norton and Ariely).
Which of the following nations would you rather join given a Rawlsian constraint?
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1 2
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1. Choice One2. Choice Two
Which of the following nations would you rather join given a Rawlsian constraint?
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12345
2
12345
1. Choice One2. Choice Two
In Canada, how much of the available wealth (100%) does the bottom quintile
control?
1. Less than 1%2. 2-3%3. 4-5%4. 6-8%5. 9-10%6. 11-12%7. More than 12%
In Canada, how much of the available wealth (100%) does the top quintile
control?
1. 20%2. 43%3. 45-55%4. 56-60%5. 61-65%6. 66-70%7. More than 70%
Actual Distributions
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3615
21
11
Sweden0.012.8
8.9
20.2
68.2
Canada
20
20
20
20
20
Equal
What are the actual distributions of wealth?
CANADA USA Sweden0
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20
30
40
50
60
70
80
90
0.01 0.1
18
2.80.2
36
8.9
4
15
20.2
11
21
68.2
84
11
Series1Series2Series3Series4Series5
Real data from Sweden
Q1 Q2 Q3 Q4 Q50
10
20
30
40
50
60
70
80
Faux SwedenReal Sweden
http://www.thefiscaltimes.com/Articles/2011/03/25/Wealth-Debate-How-Two-Economists-Stacked-the-Deck.aspx#page1http://www.hhs.se/SITE/Publications/Documents/sjoe_WealthConc.pdf
What are the actual distributions of wealth?
CANADA Quebec Ontario0
10
20
30
40
50
60
70
80
0.01 0.01 0.012.8 2.5 3
8.9 8.3 9.6
20.2 19.421.5
68.269.9
65.9
Series1Series2Series3Series4Series5
Wealth v. income distribution in Canada
wealth income0
10
20
30
40
50
60
70
80
Series1Series2Series3Series4Series5
Inequality by decile1 : $24
Source: Chawla (2004); http://www.ncw.gc.ca/[email protected]?lid=320
Inequality by decile1 : $197
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Colonization in Hawai‘i
• 231 years of occupation• Denial of culture• Spiritual conversion• Land loss• Language loss• Political sovereignty
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Native Hawaiian and Indigenous Peoples
• Sacred relationship with earth: ‘āina• Emphasis on harmony and balance: lōkahi• Oral history and traditions• Spirituality: ‘aumakua• Collective norms and family: ‘ohana
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Native Hawaiian Well-Being
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Statewide Native Hawaiians
Family poverty ratea 7.1% 15.0%
Per capita incomea $25,326 $16,932
Life expectancyb 78.85 74.90
Illiteracy ratec 19% 30%Family sizea 2.77 3.47a (Naya, 2007)b (Gardner, 1996)c (Tibbetts, 1999)
Individual Development Accounts (IDAs)
• Financial education• Duration• Matching mechanism
– Cap– Rate and graduation
• Over 50,000 IDA account holders in 548 programs nationwide;
• Total funding = $225 million (Boshara, 2005).
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N
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Longitudinal Analysis
Research Question: To what extent does IDA graduation affect social development?
Indicators of social development• College degree• Business ownership• Net worth
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Results: Percent with college degree
Treatment impact = (46-22) – (32-19)= 11
(46 – 22)
(32 - 19)22
46
19
32
0
5
10
15
20
25
30
35
40
45
50
Pre Post
Grad
Non grad
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Results: Business ownership
Treatment impact = (26-13) - (22-12) = 3
13
26
12
22
0
5
10
15
20
25
30
Pre Post
Grad
Non grad
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Results: Net worth
(194655 – 13107) - (74196 – 6440)
13107
194655
6440
74196
0
50000
100000
150000
200000
250000
Pre Post
Grad
Non grad
