1. Chapter 13 Section 3

2.  Family – group of 2 or more related peoples living in same housing unit  Household – all people living in the same housing unit  Poverty Threshold (poverty line) ◦ Income level below what is needed to support family or household ◦ Changes according to situations

3.  Poverty Rate – percentage of people with income below the official threshold ◦ Often differ sharply by groups  Race and ethnic origin  Type of family  Age  Residence

4.  Shifts in Family Structure ◦ Single-parent (single mom)  Location  Racial and Gender Discrimination  Growth of Low-Skill Service Jobs  Lack of Education

5.  Income Inequality ◦ Top 20% made 50% of the income in 2006 ◦ Bottom 60% only made about 26% in 2006  Income Gap ◦ Factors  Differences in skills and education  Inheritances  Field of Work

6.  The Earned Income Tax Credit (EITC) ◦ Offsets the SS tax; earn based upon earned income and number of qualifying children  Enterprise Zones ◦ Companies can locate to be free of taxes and regulations (inner cities)  Employment Assistance  Housing Assistance  Welfare Reform ◦ Welfare to Workfare (work for your assistance)