SUPPORTING EVIDENCE: Relationship between Income and Neighborhood Conditions Literature review: The relationship between income and neighborhood conditions is bi-directional. Those who are considered to be low income have an increased chance of living in a disadvantaged neighborhood (i.e., neighborhoods characterized by conditions such as high crime rates, poor housing quality, and limited public resources). Unsurprisingly, in areas with housing that is affordable to low-income families are typically disadvantaged (Bennett, Smith, & Wright, 2006; Imbroscio, 2012).1 Living in a disadvantaged neighborhood makes it difficult to build wealth through home ownership. According to Saegert, Fields, and Libman (2011), this is a complex process reproduced over generations. African American households have typically been segregated in neighborhoods with low home values, making asset and therefore wealth accumulation difficult. As a result, few assets are passed to succeeding generations, who, in turn, are more
likely to also be relegated to neighborhoods with low value housing stock. The literature provides an indication that low-income minority households are typically stuck in neighborhoods with poor conditions, and as a result are unable to derive wealth and income from homeownership. This is despite federal policy designed to help families, particularly lowincome minority families, build wealth and income through homeownership (Hilber & Liu, 2008; Immergluck, 2008). This problem was exacerbated during the foreclosure crisis, during which time minority families fell victim to predatory lending practices that stifled homeownership (Cummings, DiPasquale, & Howell, 2006; Gerardi & Willen, 2009; Grinstein-Weiss, Sherraden, Gale, Rohe, Schreiner, & Key, 2011; Hilber & Liu, 2008; Kahn, 2002; Shapiro, Meschede, & Sullivan, 2010; Turner & Smith, 2009;Van Zandt & Rohe, 2006; Williams, Nesiba, & McConnell, 2005).
SUPPORTING EVIDENCE: Relationship between Income and Mental Health Community survey: Working within the informal economy is associated with poor mental health. Income instability is also associated with poor mental health. Greater use of informal economy was significantly associated with lower collective efficacy,2 life satisfaction,3 and well-being.4 Greater use of the informal economy was also significantly associated with more severe depression symptoms and psychological distress.5 6
The survey results also indicated that greater income instability was directly associated with increased severity of mental illness, as measured by symptoms of depression and psychological distress. Additionally, greater income instability was directly associated with lower general health and well-being. Finally, greater income instability was directly associated with lower community mental health processes, as measured by collective efficacy and psychological sense of community. Details of these analyses are shown in Appendix J.
PREDICTED IMPACTS OF REVISIONS TO U.S. EEOC POLICY GUIDANCE ON INCOME The predicted impact of the proposed revisions to the U.S. EEOC Policy Guidance on income is likely moderate to substantial increase in resident income (in absolute terms) as well as a possible substantial increase in resident income (relative to the citywide median). The revision
may also produce a moderate decrease in use of the informal economy and sources of informal income. All of these predicted impacts will result in Restorative Equity distribution of effects.
1
2
r = -.14, p = .02
3
r = -.18, p = .008
4
r = -.19, p = .003
5
r = .37, p < .001
6
r = .46, p < .001
In the United States, there is a consistent shortage of affordable housing (defined as less than 30% of household income) since 1970 (Institute for Children, Poverty and Homelessness, 2012). For example, in 2009, there were 5.4 affordable units available for every 10.9 households below the federal poverty line (Institute for Children, Poverty, and Homelessness, 2012). Higher quality neighborhoods are often inaccessible to low-income households due to their scarce supply of affordable housing (Imbroscio, 2012).
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Adler School Institute on Social Exclusion: Mental Health Impact Assessment
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