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411
own success or failure. Of course, this national
Contents myth has never been entirely correct. Family
education, position, wealth, and having white
INTRODUCTION . . . . . . . . . . . . . . . . . . 412
Anglo-Saxon ancestry have always conferred
DEFINITIONS AND
advantages, but their importance has become
CONCEPTUAL
more salient over the past generation or two in
FRAMEWORKS . . . . . . . . . . . . . . . . . . 412
part because social inequality based on income,
SOCIAL ADDRESS VARIATIONS
ethnic group, and education has increased in
IN THE UNITED STATES . . . . . . . 414
the United States and to a lesser extent in
Income and Wealth . . . . . . . . . . . . . . . . 414
other western democracies since the 1970s
Conditions Correlated
(Neckerman 2004).
with Poverty . . . . . . . . . . . . . . . . . . . . 415
In this review, we take family socioeconomic
Contexts of Poverty . . . . . . . . . . . . . . . . 417
position as a point of departure to understand
INCOME/POVERTY AND
Annu. Rev. Psychol. 2010.61:411-437. Downloaded from arjournals.annualreviews.org
(Bronfenbrenner & Morris 1998, 2006). Using fects of contexts may combine. One approach is people
this ecological perspective, we make context the akin to cumulative disadvantage theories (e.g.,
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anchor point of our analysis, organizing the dis- Sameroff & Seifer 1995), considering the com-
cussion around person variables, processes, and bined effects of contexts as greater than the sum
time as they relate to the contexts of interest of their individual components. According to
(see Eamon 2001a for similar analysis). this hypothesis, the advantages or disadvantages
As noted above, poverty is often part of conferred by the multiple settings and contexts
a net of correlated social address characteris- of poverty are cumulative and often multiplica-
tics, including single-mother family structure, tive, leading to larger effects than would be
low parent education, minority ethnic group predicted from a simple additive model. Alter-
membership, and immigrant status. These in natively, their relations may be compensatory
turn affect the contexts surrounding the child or interactive. Advantages in one context may
within and outside the home. A large literature compensate for disadvantages in another, or
showing that family environment and parenting combinations of components may lead to differ-
mediate some of the effects of socioeconomic ent contextual environments for children. For
status (SES) on children has been well reviewed example, poverty in immigrant families may co-
in this publication (Bradley & Corwyn 2002, occur with different family processes and have
Conger & Donnellan 2007). As Eamon (2001a) different effects on children than poverty in
pointed out, “Theories of the effects of poverty native-born families partly because such fami-
on proximal processes in the microsystem of lies have different types of social capital (Fuligni
the family have the most research support, but & Yoshikawa 2003). Moreover, immigrants dif-
processes in other microsystems such as the fer considerably in patterns of achievement and
peer group and school and in other levels of assimilation into their adopted countries, sug-
the ecological environment may also explain gesting the importance of a range of cultural
the relation between economic deprivation and values, social supports, and prior experiences.
children’s socioemotional functioning” (p. 256). Much of the research on poverty and SES
Following this suggestion, we give particular at- is based on unidirectional causal models, in
tention to proximal contexts beyond parenting, part because their goal is to identify contexts
including material hardship, child care, school- that can be changed through intervention, but
ing, neighborhoods, and peer groups. models incorporating reciprocal interaction of
Lack of space precludes extensive review persons and environments are more consistent
of person-by-context interactions, but we do with ecological theory. “Development takes
examine age differences and the developmen- place through increasingly complex processes
tal timing of exposure to contexts of poverty. in which an active organism interacts with per-
We acknowledge that biological and genetic sons, objects, and symbols in its immediate
for children under age 6 (20%). Similarly, the families are much more likely to be poor than
percentage of children living below 200% of two-parent married families. In 2006, children
living in families headed by a female with no
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Income inequality. Increasing income Low levels of education and educational in-
inequality—the gap between the highest and equality. Education has become increasingly
lowest incomes within a society—may be as important for earnings, with wages stagnat-
important as absolute levels of income or ing or dropping at the low-skill end of the
poverty (Blank et al. 2006). Income inequality continuum. From 1979 to 2004, real wages
has been increasing worldwide, but the dis- and employment rates of men with less than
crepancy between rich and poor is greater in a high school education declined; wages re-
the United States than in most other countries mained steady for high school graduates, and
(Rainwater & Smeeding 2003). From 1980 they increased for those with more than a high
through 2005, the number of U.S. children liv- school education. Wage declines were espe-
ing in middle-income (200%–399% of poverty cially severe for African American men. Al-
threshold) families declined from 41% to 32%. though employment rates for women increased
At the same time, the percentage of children among all educational groups, wages dropped
living in families with high income (more than slightly for high school drop-outs; wages for
400% of poverty) was higher in 2005, at 30%, women with higher education increased more
than in 1980, at 17%, and the percentage in than for those with lower levels of education
very-high-income (600%+) families went from (Blank et al. 2006). All of these trends have mag-
4% to 14% (Federal Interagency Forum on nified the advantages of higher education and
Child and Family Statistics 2008). Inequality the disadvantage associated with low education.
in wealth is greater than that in income. As of Given this context, inequality of educational
the early 2000s, the top 10% of the income opportunity is especially disturbing. From the
distribution had 68% of the wealth, and the earliest years through higher education, chil-
top 1% had 34% of the wealth (Scholtz & dren from low-income families have less access
Levine 2004). to high-quality educational experiences than do
less, public expenditures in the richest 5% of (Hernandez et al. 2008), but are also more
schools are still double those in the poorest 5% likely to face barriers resulting from parents’
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research supports the hypothesis that family tendency for more recent poverty to predict
income positively influences children’s school behavior problems in fifth grade. Concurrent
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achievement and social emotional develop- income during adolescence was related to non-
ment, at least at the lower ranges of in- marital childbearing, even with controls for in-
come. Small increments that move families out come in earlier time periods (Duncan et al.
of poverty produce modest improvements for 1998).
children. In short, early poverty appears to be espe-
cially damaging to children’s achievement tra-
jectories and school careers, but both early
Developmental Timing and and later poverty appear to affect such behav-
Developmental Domain iors as externalizing problems and nonmari-
Poverty during early and middle childhood ap- tal child bearing. These developmental pat-
pears to have greater effects on achievement terns suggest that different pathways may link
and educational trajectories than does poverty family income to different developmental do-
in adolescence. In analyses of two nationally mains. There is some preliminary evidence, for
representative longitudinal studies, family in- example, that the conditions of poverty affect
come during the period from birth through neuropsychological processes involved in self-
age five predicted educational attainment and regulation that may be especially vulnerable in
achievement better than income after age five the early years (Noble et al. 2007). We consider
(Duncan et al. 1998, Votruba-Drzal 2006). Sim- the proximal mediators of these differences by
ilarly, in the welfare policy experiments, positive developmental level and developmental domain
effects on children’s achievement were great- in a later section.
est for those who were three to five years old
when their parents entered the program; in fact,
there were some negative effects for those in Disaggregating Income from Other
early adolescence (ages 11–13) when their par- Aspects of Poverty
ents entered the programs (Morris et al. 2005). Family structure and stability. Efforts to dis-
Similarly, the positive effects on school per- aggregate the effects of income from those of
formance in the income maintenance exper- family structure indicate that each is important,
iments occurred for elementary-age children but that income may be somewhat more im-
but not for adolescents (Salkind & Haskins portant for educational attainment, and fam-
1982). ily structure may have more influence on be-
For social and deviant behavior, however, havior problems. One review of several early
the developmental timing of poverty appears studies suggests that about half of the income
to be less important. Poverty in both early gap in school completion between children with
Family structure is confounded with fam- to Work Study, single mothers were assigned
ily instability. Single-mother families are more to a Human Capital condition offering oppor-
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likely than married couples to have unstable tunities for limited amounts of education or to
family structures as a result of changes in res- a Labor Force Attachment condition requiring
ident and marital partners. Changes in family participants to search for work immediately.
structure during the preschool years predicted The control group remained eligible for cash
children’s behavior problems at both first and welfare. Using a two-stage regression proce-
fifth grades, even with controls for income and dure, the investigators demonstrated a modest
family structure at birth in one longitudinal effect of parents’ educational gains on children’s
study (Cavanagh & Huston 2008). In another performance on achievement tests (Gennetian
analysis, increases in income during the pe- et al. 2008). Similarly, in a longitudinal study
riod from age two through first grade pre- of young children, increases in maternal
dicted reduced behavior problems, but only education between the time children were two
at times when mothers lived with a partner. and three years old predicted improvements in
When mothers were single, changes in income children’s language performance at age three,
had no relation to children’s behavior problems but only for mothers with no initial post–high
(Dearing et al. 2006). Temporal changes and school training (Magnuson et al. 2009).
instability in family processes partly accounted
for the effects of income on cognitive-linguistic Variations by race/ethnic group. By the
development and fully accounted for income time children enter school, African American
effects on social behavior (Mistry et al. 2004). and Hispanic children receive lower average
Finally, the rates of educational and social prob- scores on measures of cognitive development,
lems for children in stepfamilies are similar to school readiness, and achievement than do non-
those for children in single-mother families, Hispanic White children. In a recent review
even though the stepfamilies have consider- of approaches to closing these racial and eth-
ably higher incomes (Ginther & Pollack 2004, nic gaps, the editors concluded that increas-
McLanahan 1997). In short, there is evidence ing income and parental education would have
that not only family structure but also family only modest effects; direct intervention in the
stability is important for children’s cognitive de- form of early childhood education appears to
velopment and especially for their social devel- be a more promising approach (Rouse et al.
opment. One implication of this pattern is that 2005). There is some evidence that chronic
a stable single-mother family may support de- poverty has more negative effects on behav-
velopment better than one in which partners ior and emotional problems of White chil-
come and go. dren than of African American children, partly
Virtually all of the available research examining and SES, we are particularly interested in un-
relations of poverty to children’s development derstanding their combined and interactive
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ment (Bradley et al. 2003). move single mothers into employment, there
In two analyses of a nationally representative were mixed effects on mothers’ psychologi-
sample of children from kindergarten through cal well-being and parenting practices. Even
fifth grade, poverty and family investment were when income and resources increased, partic-
measured more completely than in earlier stud- ipation in the experimental policies increased
ies. Income and material hardship were evalu- depressive symptoms for mothers of preschool
ated separately as indexes of poverty, and the children. There were no significant effects on
family investment measure included participa- parenting and children’s behavior. For moth-
tion in out-of-school structured activities and ers whose children were school-age, by con-
other activities outside the home as well as cog- trast, programs reduced depressive symptoms,
nitive stimulation within the home. Both mate- increased parental warmth and cognitive stimu-
rial hardship and low income predicted lowered lation, and reduced behavior problems (Morris
family investment and parenting stress. In the et al. 2009, Walker et al. 2008).
overall models, family investment was the major Both the family investment and family stress
path to children’s cognitive development; fam- models posit the direction of influence from
ily stress and lack of positive parenting formed parent to child, but there is some evidence
the major path to behavior problems. The mod- for transactional processes. Over the first three
els for White, African American, and Hispanic years of life, parenting quality mediated the ef-
families followed similar patterns, but varied fects of family resources on children’s cognitive
in the strength of the associations among con- development, but children’s early cognitive per-
structs (Gershoff et al. 2007, Raver et al. 2007). formance also contributed to higher parenting
quality (Lugo-Gil & Tamis-LeMonda 2008). It
Income change and parenting. Although appears that children created their parenting
longitudinal studies support the hypothesis that environment as well as being influenced by it.
family processes mediate the effects of poverty, This model has implications for early interven-
there is mixed evidence about whether im- tion and for the possible mechanisms by which
provements in income and material well-being contexts may have cumulative effects. In one
translate into changes in parenting practices. In analysis, the investigators demonstrated that in-
a large sample of single mothers receiving wel- fants from low-income families who received
fare, those who moved into employment, par- intensive high-quality child care demonstrated
ticularly stable employment, had substantial in- improved language development, which carried
creases in income and psychological well-being, over to the home where babies elicited language
but there were few changes in the quality of interactions from adults (Burchinal et al. 1997).
impacts on health, cognitive, and social devel- exposure to lead and other pollutants could ac-
opment. Many poor children experience food count for up to one-fourth of a standard devia-
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insecurity in the form of reduced food choices, tion in achievement test scores (Dilworth-Bart
but a relatively small number (0.6% of the pop- & Moore 2006).
ulation) have spells of serious food insecurity Finally, the physical and social environments
in which they are hungry and skip meals alto- of poverty can produce high levels of stress
gether. Housing problems are frequent among that require children to expend both cognitive
the poor as they often live in physically inade- and emotional resources in vigilance and self-
quate and crowded spaces, and high costs lead protection. The large literatures on cumulative
to frequent moves that can result in changes effects of the physical and social environments
of neighborhood and schools for children as of poverty and on the relations of physical en-
well as in homelessness (Federal Interagency on vironmental variables to development are well
Child and Family Statistics 2008). reviewed by Evans (2006).
Indices of material deprivation are corre-
lated with income poverty, particularly near the
low end of the income distribution, but the two Out-of-Home Settings
are not identical (Mayer 1997). Among a sam- Although families are generally acknowledged
ple of low-income single mothers studied over to be the most important single contextual in-
six years, hardships decreased monotonically fluence on children, most children spend time
across quintiles of income, but mothers’ men- in child care and early education settings dur-
tal health was also related to perceived hard- ing the preschool years and in schools and
ship independently of income (Sullivan et al. other out-of-school settings throughout child-
2008). In another sample of single mothers, a hood and adolescence. The institutions and so-
shift from welfare to stable employment led to cial systems surrounding a family can have both
better income as well as to reduced financial direct and indirect effects on children as well as
strain and food insecurity (Coley et al. 2007). on parents.
Few investigations of poverty effects on chil-
dren include indicators of material deprivation Preschool and child care. The majority of
separately from family income. One exception preschool-aged children spend time in child
is a path analysis showing that both income care and early education settings outside their
and material deprivation contributed indepen- homes, being cared for by people other than
dently to predicting parents’ investments and their parents. Intervention programs such as
positive parenting, which in turn predicted chil- Head Start and high-quality preschools con-
dren’s cognitive and social-emotional compe- tribute to children’s academic skills and, in some
tence (Gershoff et al. 2007). cases, to competent social behavior (Karoly
than those in near-poor families, probably be- did receive sensitive and stimulating interac-
cause the very poor have access to child care tions with the teacher and high instructional
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subsidies. In analyses of quality when chil- quality performed better on language, preaca-
dren were ages two, three, and four-and-a-half demic, and social skills at the end of the kinder-
in the NICHD Study of Early Child Care, garten year (Burchinal et al. 2008).
there were U-shaped relations of family in- In short, the most disadvantaged children
come to teacher education and training, but are least likely to attend center-based child care
on observational measures of the quality of or organized preschools early in their lives, and
cognitive and social interactions, quality was the programs they do attend are likely to be
lowest for poor children and highest for the af- of lower quality than the programs used by
fluent (Dowsett et al. 2008). Similar patterns higher-income families. This inequality of ex-
were found in an earlier study of child care cen- posure to high-quality early education and child
ters in several states (Phillips et al. 1994). The care can be juxtaposed against a large body of
U-shaped relation probably also applies at the evidence showing that children from disadvan-
college level, with youth from very poor fami- taged backgrounds can profit from such pro-
lies being eligible for more types of financial aid grams (e.g., Karoly et al. 2005, McLoyd et al.
than are those from families that have modest 2006). In one analysis, the authors estimate
incomes. that an intensive early education program could
Child care centers attended by preschool raise achievement by as much as 0.5 standard
children offer more opportunities for cognitive deviations (Duncan et al. 2007). Even “ordi-
stimulation and other aspects of quality than nary” center-based child care appears to provide
do the unregulated home settings used by low- a small advantage in cognitive functioning and
income families, but the variability within each achievement in comparison to typical home-
type of care is quite large (Li Grining & Coley based child care (NICHD Early Child Care
2006). Nevertheless, three- and four-year-olds Research Network & Duncan 2003).
from low-income families are less likely than Although high-quality programs contribute
children from higher-income families to be en- to intellectual development for children from
rolled in organized preschool programs. The low-income families, they also promote cogni-
disparity is reduced at age five, when many chil- tive development for children from more af-
dren attend publicly supported kindergartens fluent families. In an analysis of three studies
(Bainbridge et al. 2005). Even among children of child care quality, Burchinal et al. (2000)
who are eligible for Head Start, all of whom concluded that there was no evidence that
are economically disadvantaged, those who en- quality had larger effects for poor than for non-
roll are somewhat less disadvantaged than those poor children, although there was some evi-
who do not enroll (Foster 2002b). dence for greater effects on non-White than
attend schools of lower quality, on average, than average SES was associated with better per-
do more affluent children. Although reduced, formance on English vocabulary, but predicted
funding disparities continue despite legal re- grade point average only for first-generation
quirements for equitable distribution of public students (Ryabov & Van Hook 2007). In an-
support (Books 2004, Neckerman 2004). Over- other adolescent sample, schools with higher
all, children from low-income families attend average SES levels had more positive social
schools with less-qualified teachers than do climates, which in turn mediated the posi-
more affluent children (Lankford et al. 2002). tive relations of school SES to self-reported
At a more proximal level, processes within the school engagement. These patterns were con-
classroom and the school differ by income. In sistent across different racial and ethnic groups
one longitudinal study, over 1600 first- and (Benner et al. 2008).
third-grade classrooms from diverse regions in School quality may also be an important
the United States were observed. In classrooms factor in the persistence or fade-out of benefits
attended by children from low-income fami- that children receive from Head Start and other
lies, as compared with those attended by chil- early intervention programs, but the data are
dren from more affluent families, classroom slim and inconsistent. In one nationally repre-
climate was less positive and supportive, teach- sentative sample, the benefits of center-based
ers engaged in less high-quality instruction, and preschools on children’s achievement lasted
teachers spent more time disciplining children. into first grade only in large classrooms with
Children in classrooms with a positive climate relatively low quality of reading instruction,
were more involved in classroom activities and suggesting that high quality in either preschool
were less disruptive; hence such classrooms of- or school might compensate for lower quality
fered better learning environments (NICHD in the other context (Magnuson et al. 2007).
Early Child Care Research Network 2006). In Using a longer time perspective, however,
a sample of rural African American students, Currie & Thomas (2000) demonstrated that
those in classrooms with high levels of organiza- the benefits of Head Start for African American
tion, rule clarity, and student involvement had children lasted when children had high-quality
relatively low levels of both externalizing and instruction, but not when they attended
internalizing behavior problems (Brody et al. lower-quality schools, suggesting a cumulative
2002). effect of preschool and school experiences.
School quality is determined not only by the
practices and policies of the adults running the Neighborhood. Although some children at-
school, but also by the population of students tend schools outside their neighborhood,
Leventhal & Brooks-Gunn (2000) conclude For our purposes, the important question is
that high neighborhood SES contributes to whether neighborhood characteristics mediate
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school achievement and educational attain- the effects of family poverty. That is, are some
ment, and that low neighborhood SES increases of the correlates of poverty due to the neigh-
the likelihood of deviant and problem be- borhoods in which poor people live? There is
havior. One large-scale investigation indicates, some evidence that parenting practices medi-
however, that the association of neighborhood ate the effects of neighborhood disadvantage
SES with achievement test scores and behavior on children’s achievement (Eamon 2005) and
problems holds true only for White children behavior (Kohen et al. 2008), though not all
and for African American children who live studies agree (Caughy et al. 2008). Both social
in predominantly Black neighborhoods (Turley norms and social cohesion of relationships also
2003). mediate the effects of neighborhood poverty
Conceptual frameworks explaining the on young children’s verbal skills and behavior
effects of neighborhood disadvantage on chil- problems (Caughy et al. 2008, Eamon 2005,
dren’s development include several potential Kohen et al. 2008).
pathways. Institutional resources vary. For Disadvantaged neighborhoods magnify
example, poor neighborhoods differ from individual family poverty effects in part by
affluent neighborhoods in opportunities for increasing the likelihood of associating with
recreation, grocery stores with healthy food, deviant peers, which in turn increases the like-
public services, quality child care and schools, lihood of aggression and antisocial behavior.
out-of-school programs, jobs for adults, and Parents who are nurturant and involved, along
transportation. A second pathway is shared with community resources, can counteract de-
values and norms along with community viant peer pressure (Brody et al. 2001, Eamon
enforcement of those norms or collective ef- 2001b). As children reach the later elementary
ficacy. Sampson (2006) has demonstrated that grades and early adolescence, opportunities for
neighborhoods with high levels of collective supervised activities in the community may be
efficacy have lower crime rates than others protective (Mahoney et al. 2005). In one inves-
that are equally poor but have low efficacy. tigation, aggressive children who lived in unsafe
Because peer values and behavior contribute neighborhoods were especially likely to show
to individual children’s developmental path- increases in externalizing behavior problems in
ways, the presence of deviant peers in the seventh grade if they spent unsupervised time
neighborhood is an important mechanism for with peers (Pettit et al. 1999).
neighborhood effects. One group of investiga- Experiments investigating the effects of
tors argues that the high percentage of children changing neighborhoods constitute another
relative to adults (i.e., child saturation), which approach to identifying the causal role of
posite ends of a continuum. In the New Hope immigrants achieve well and have relatively few
experiment, which increased a range of re- behavior problems despite the fact that their
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sources for children and families, there were families often have low incomes and limited
long-lasting effects on an index of positive be- levels of education. Most theorists emphasize
havior that measured social competence, auton- the social capital and values characterizing their
omy, and compliance with adult rules, but not families and communities as factors that coun-
on behavior problems (Huston et al. 2008). teract the effects of poverty. Immigration and
Contexts combine and interact at the level migration are increasing throughout the world,
of social address variables and at the level of and the United States is becoming increasingly
proximal experiences. One cannot completely multiethnic. We are now beginning to see a
disentangle the social address variables, and a body of research examining contextual influ-
strictly additive model probably is not correct. ences and processes across ethnic and cultural
Instead, social address variables probably are groups that allows better understanding of the
cumulative and multiplicative, at least for similarities and differences in the processes in-
poor, single-mother, poorly educated, and fluencing development. Future research could
minority families. Income alone accounts for provide more nuanced and theoretically in-
significant but relatively small amounts of formed understanding of both social address is-
variation in development; adding material sues and the operation of proximal processes in
deprivation improves predictive accuracy to mediating and moderating the effects of fam-
some extent. There is support for a cumulative ily income and family poverty on children’s
model in studies showing that the number of development.
advantages or disadvantages rather than any Reciprocal or transactional causal models
one contextual change mediates the effects have considerable intellectual appeal and have
of improved earnings (Gassman-Pines & been used extensively in developmental re-
Yoshikawa 2006, Walker 2008), and advantages search, yet most empirical research on poverty
conferred in preschool continue when children and its related contexts is based on unidirec-
subsequently experience high-quality schools tional models in which poverty and other social
(Currie & Thomas 2000). address variables affect family or other contexts,
Poverty effects also vary by ethnic group which in turn influence child development.
and sometimes by family structure in ways Poverty and its correlates are in varying degrees
that suggest compensatory effects. For example, exogenous in the sense that they are unlikely
the universal prekindergarten program evalu- to be affected directly by children, but most of
ated in Oklahoma had stronger effects on chil- them can be affected by parents’ characteristics
dren from low-income families than on those and behavior. The fact that parents’ skills,
from more affluent families, and impacts were personalities, and motivations influence family
portant features of schools and neighborhoods McLoyd 1998). Income loss may have effects
are the characteristics of the other people on both parents and children not only through
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who inhabit them (e.g., the percent living in material deprivation, but also through negative
poverty); each individual contributes in some social comparison.
sense to these group and community settings. This review has been restricted largely to
The concentration on unidirectional mod- poverty in the United States with occasional in-
els is based partly in the difficulty of demon- clusion of other developed countries, but other
strating reciprocal processes empirically, but it parts of the world, particularly sub-Saharan
also results from the policy goals inherent in Africa and south Asia, have levels of poverty
much of the research on socioeconomic con- that are orders of magnitude worse than those
texts. Policy research is oriented to actions that in developed countries. For example, the rates
can ameliorate social problems, and policy can of neonatal death in southern and central
affect income, material well-being, and some Africa and south Asia range from 36 to 45
of the other correlates of poverty more easily per 1000 births, compared to 3 for developed
than it can change individuals. We would argue countries (United Nations Children’s Fund
that transactional models do not imply that the 2008). Although ecological theory might be
processes involved cannot be altered by inter- useful in conceptualizing the research for these
vention. Suppose, for example, that exposure populations, the questions and issues are quite
to child care providers who provide a rich lan- different, focusing on survival, basic education,
guage environment improves a child’s language preventive health measures, and economic
development, which in turn leads the child to opportunity, among others. Research on social
interact with providers in ways that elicit even programs in developing countries offers one
richer language interactions, and so on. Inter- pathway for additional understanding of how
vention at any point in that process could alter social ecologies affect child development (for
the entire sequence just as altering one part of example, see Lomel’i 2008).
a dynamic system creates changes in the rest These conclusions point to a number of
of the system. We believe that the field is ready fruitful directions for future research, in-
for more research that takes transactional mod- cluding explicit examination of developmental
els seriously, and that such models will not only change (as opposed to developmental differ-
generate better scientific understanding of de- ences among groups); more careful delineation
velopment, but also will produce more nuanced of the processes affecting cognitive and so-
understanding of policy-relevant processes. cial development; further investigation of de-
Although income inequality, social inequal- velopmental timing of poverty; more theoreti-
ity, and relative poverty are widely discussed, cally guided treatments of the interplay among
there is almost no quantitative empirical contexts; methodologically sound tests of
SUMMARY POINTS
1. Poverty is part of an interrelated web of correlated conditions—low income, material
deprivation, single-parent family structure, low educational level, minority ethnic group,
and immigrant status.
2. Developmental change and developmental timing of exposure to poverty contexts are of
particular importance.
3. The effects of poverty and its associated characteristics are likely to be mediated by
proximal contexts and processes with which the child has direct interaction.
Annu. Rev. Psychol. 2010.61:411-437. Downloaded from arjournals.annualreviews.org
5. The relations between the developing child and the contexts he or she experiences are
reciprocal and transactional.
6. Relative as well as absolute levels of resources may define important features of poverty.
FUTURE ISSUES
1. As the United States becomes increasingly multiethnic, it will be more important to
understand ethnic and cultural variations in how the societal contexts associated with
poverty influence children’s development.
2. Empirical tests of transactional models are possible, given the availability of large na-
tionally representative datasets and increasingly powerful statistical tools.
3. Research on contexts outside the family has begun to appear, but more investigation of
school and neighborhood settings as contexts could contribute useful information to the
field.
4. Economic, anthropological, and human developmental perspectives joined in interdisci-
plinary approaches have produced some valuable advances in the field and will continue
to be productive avenues, particularly for understanding the interplay between structural
conditions and individual processes.
5. Current policy research is concerned almost entirely with United States conditions and
policies. A broader range of knowledge would be generated by integration of approaches
across nations with different levels of affluence and different policy environments.
DISCLOSURE STATEMENT
The authors are not aware of any biases that might be perceived as affecting the objectivity of this
review.
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Figure 1
Bronfenbrenner’s ecological model. Published with permission of McGraw-Hill Companies.