A few contributing factors of poverty include the availability of jobs, underemployment, and wage stagnation.
The NYU Furman Center’s 2018 report found that in New York City, growth in real median household income slowed to 1.5 percent between 2016 and 2017. The city’s median income just barely exceeded the nationwide median income in 2017 at $62,040—which is notable in an area where the cost of living is so high. According to the Furman Center, less than one-third of New York City households own their homes—about half the nationwide homeownership rate. In Westchester County, the
median property value was $547,800 in 2017—2.5 times higher than the national average.
To further illustrate the high cost of living in Westchester specifically,
it’s estimated that a family of two adults and two children must earn $88,000 a year to cover basic costs, including food, housing, transportation, healthcare and child care—and this figure does not include money for savings or emergencies.
Data indicates that the median household income in Westchester is only about $2,000 more than this bare-bones “survival” budget figure.
One positive change that is reducing poverty is the
New York state minimum wage increase, which has been gradually increasing to $15 an hour. The minimum wage in 2013 was $7.25, so this change marks an increase of more than 50 percent.
The minimum wage law affects one-third of all city workers, which translates to millions of New Yorkers.
Poverty is greatly affected by public policy. Safety net benefits play an important role in keeping families above the poverty threshold, along with how invested local government is in combating poverty with its own initiatives. A few New York City local policies that are helping to decrease poverty include free Pre-K schooling for all 4-year-olds, as well as paid sick leave.
When we look at the factors that play into poverty in New York, we must acknowledge the relationship between poverty and education level. The New York State Community Action Association’s
report looks at educational attainment and poverty, noting that as one’s educational level increases, their chances of poverty risk decreases: 29 percent of people with no degree, 15 percent of people with a high school degree, 10.7 percent of people with an associate degree, and 5.2 percent of people with a bachelor’s degrees or more live in poverty. The median income of a worker with a high school diploma in New York is $30,803, while the poverty threshold for two-adult, two-children families is $33,562, according to NYCgov.