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'''Human Capital Theory'''
'''Human Capital Theory'''


Human capital theory is one theory to explain poverty and inequality. It’s essential claim is that “people are poor because they are deficient in education, skills, and work experience” (p. 61). This explains that the cause of poverty is the individual's own fault. However, human capital theory is not based on realistic causes of poverty. Current poverty causes can be explained by a “lifetime of inadequate resources” (p. 63).  In other words, the poor lack education, skills, and work experience because they do not have sufficient resources to make these education, skills, and work possible. For example, parents in poverty who seek an adequate education for their children, they may have the best intentions in mind. However, the “schooling their children recieve is still likely to be inferior” (p. 63). Even using all the resources available to them, the poor still are at a disadvantage. Another major flaw of human capital theory is that many poor are unemployed, not because they are “lazy” or “unambitious” but because there are simply not enough jobs to go around. Human capital theory makes the “assumption that suitable employment opportunities are sufficiently available for all qualified individuals” (p.75). Therefore, the poverty continues to grow because of the lack of job availability. Human capital theory misguides the cause of poverty claiming that the poor have made a serious of “bad decisions” when in actuality it is the lack of resources that perpetuates poverty.
Human capital theory is one theory to explain poverty and inequality. It’s essential claim is that people are poor because they do not have a sufficient education or work experience. This explains that the cause of poverty is the individual's own fault. Other theories argue that current poverty causes can be explained by a lifetime of inadequate resources. In other words, the poor lack education, skills, and work experience because they do not have sufficient resources to make these education, skills, and work possible. For example, parents in poverty who seek an adequate education for their children, they may have the best intentions in mind. However, the schooling available to their children is overall inferior. Even using all the resources available to them, the poor still are at a disadvantage. Human capital theory makes the assumption that suitable employment is available to everyone who wants it. Therefore, other theories explain, that poverty continues to grow because of the lack of job availability. Human capital theory explains the cause of poverty claiming that the poor have made a serious of “bad decisions” while other theories explain poverty as the lack of resources that perpetuates poverty.


Royce, E. (2019). ''Poverty & power: The problem of structural inequality''. Lanham, MD: Rowman & Littlefield.
Royce, E. (2019). ''Poverty & power: The problem of structural inequality''. Lanham, MD: Rowman & Littlefield.

Revision as of 19:01, 4 April 2019

Sections to be peer reviewed:

Article Selection

Causes of Poverty

Sections we are going to add

  • Human Capital Theory -Elise
  • Biogenetic Theory- Brittany
  • Cultural Theory- Tori
  • "children out of wedlock"- Ben

Edit the section listed "under-education"- Alex


Human Capital Theory

Human capital theory is one theory to explain poverty and inequality. It’s essential claim is that people are poor because they do not have a sufficient education or work experience. This explains that the cause of poverty is the individual's own fault. Other theories argue that current poverty causes can be explained by a lifetime of inadequate resources. In other words, the poor lack education, skills, and work experience because they do not have sufficient resources to make these education, skills, and work possible. For example, parents in poverty who seek an adequate education for their children, they may have the best intentions in mind. However, the schooling available to their children is overall inferior. Even using all the resources available to them, the poor still are at a disadvantage. Human capital theory makes the assumption that suitable employment is available to everyone who wants it. Therefore, other theories explain, that poverty continues to grow because of the lack of job availability. Human capital theory explains the cause of poverty claiming that the poor have made a serious of “bad decisions” while other theories explain poverty as the lack of resources that perpetuates poverty.

Royce, E. (2019). Poverty & power: The problem of structural inequality. Lanham, MD: Rowman & Littlefield.


Children Out of Wedlock

There is a certain correlation that relates children born out of wedlock to poverty. 1.35 million kids in the United States in 2001 were born to single unmarried mothers. This equates to almost 33.5% of the children born in the United States in that year. (Effects of Out-of-Wedlock Births on Poverty. (n.d.). Retrieved from http://marripedia.org/effects_of_out-of-wedlock_births_on_poverty)

Children being born out of wedlock is not looking like it is stopping or slowing down anytime soon. With an estimated one million more children being born to single mothers each year, the realization of children out of wedlock is more relevant than ever. (Akerlof, G. A., Yellen, J. L., Akerlof, G. A., & Yellen, J. L. (2018, January 25). An analysis of out-of-wedlock births in the united states. Retrieved from https://www.brookings.edu/research/an-analysis-of-out-of-wedlock-births-in-the-united-states/)

These children born into fatherless families are facing poverty more so than ever. It is also 7 times more likely for children born out of wedlock to succumb to poverty. (Effects of Out-of-Wedlock Births on Poverty. (n.d.). Retrieved from http://marripedia.org/effects_of_out-of-wedlock_births_on_poverty)

With more children being born out wedlock, means more poverty developing in America.


Cultural Theory

The cultural theory believes that people who are poor find no encouragement in achieving success. This theory is very similar to the biogenetic theory because they both focus on the cause of poverty to be things in which the poor have not succeeded with. The supporters of this theory typically think that the mentality of the poor is not motivated. People in which do not support the cultural theory usually believe a mixture of three ideas: slavery, the transformation of politics and cultures in the 1960s, and the enlightened progress of the economy.

Royce, E. (2019). Poverty & power: The problem of structural inequality. Lanham, MD: Rowman & Littlefield.


Biogenetic Theory

The biogenetic theory says that a person's intelligence or cognitive ability can predict whether a person will be successful and rich, or poor later in life. The person's family background has less of an influence on the success rate than their intelligence. People with a high level of intelligence are more likely to be successful and rich, and those who have a lower level of intelligence are more likely to be poor later in life.

Royce, E. (2019). Poverty & power: The problem of structural inequality. Lanham, MD:

Rowman & Littlefield.


Under-Education:


Content- In 2015, approximately 20 percent of children in the United States lived in poverty, according to the U.S. Census Bureau. That is to say, nearly one in five children were part of a family  that had a household income of less than $24,339 a year. Other data, pertaining to the federal government’s free and reduced lunch program, suggest that a staggering 51 percent of pre-K through 12th grade students reside in low-income households. “The impact of poverty on a child’s academic achievement is significant and starts early,” says Jonah Edelman, PhD, co-founder and chief executive officer of Stand for Children, a nonprofit education advocacy organization. “Young children growing up in poverty face challenges with cognitive and literary ability and [often] begin school both academically and socioeconomically behind their peers from higher-income backgrounds.” Low-income children can experience inadequacies with physical and cognitive development and disparities regarding access to healthcare and to key resources that help ensure success. Furthermore, data show that low-income students are five times more likely to drop-out of high school than those who are high-income and 13 times less likely to graduate from high school on time. Furthermore, poor education can affect the ability of earning a college degree in the United States, which can affect one’s earnings since a college degree is attributed to one’s pay. (Poverty’s Long-Lasting Effects…, 2017)


Source- Poverty's Long-Lasting Effects on Students' Education and Success. (2017, June 26). Retrieved March 28, 2019, from http://www.insightintodiversity.com/povertys-long-lasting-effects-on-students-education-and-success/

Article Selection

1st article: "Poverty in China"

Yes, the article is relevant to the class. It talks about poverty in China. It has a small history/overview. This article seems to be neutral due to the contents being fact based. Yes, the article has citations on each of its claims. The majority of the citations come from reliable sources, however a few of them show a cite error along with a few missing citations.

2nd article: "Causes of Poverty"

Yes, the article is relevant to the class. It is written on a slightly biased platform. Every claim has a citation except for one because it still needs one. Yes, the citations are reliable.

3rd article: "Under-Education" (Causes of Poverty)

This article does not exist yet.

4th article: "Poverty in Russia"

This article doe not exist just yet.

5th article: "Child Poverty in New Zealand"

Yes, this article is relevant to the class. For the most part this article is written neutrally. Yes, every claim has a citation. The citations are reliable, but the statistics have not been updated since 2014.