Does Human Capital Investment Impact the Earning Mobility of the Near Poor?

Abstract

This secondary analysis of the earning mobility of the near poor examined the impact of human capital investment on the earning mobility of the near poor between 2005 and 2009. The theory framing this study is Human Capital Theory (Shultz, 1961). Other demographic and socioeconomic variables were included in this study to further explore factors that would lead to the earning mobility of the near poor.;The study sample was taken from the 2005 and 2009 waves of the Panel Study of Income Dynamics. The sample included 544 near poor family units with a consistent head of household in both 2005 and 2009. The near poor status of the family unit was based on the family unit size and earnings in 2004 and 2008 as is corresponds to 125 and 200 percent of the federal poverty guidelines.;The results of the study found that family units that maintained their marital and employment status between 2005 and 2009 were more likely to maintain or improve their earning status. Family units with a head of household with an education level above highs school were more likely to maintain or see an increase in earning mobility than those family units with a head of household with a high school education or less. Family units with a male head of household were more likely to increase their earning mobility than those family units with a female head of household.