Increasing Economic Resources for Children and Families

Household income and jobs that pay a living wage shape our opportunities and choices about housing, education, childcare, food, medical care, and more. Opportunities for better health decrease for
households with lower income, whether in rural or urban areas. Structural racism in the form of redlining that continues through a pattern of disinvestment and discriminatory hiring practices have kept lower income and families of color segregated from economic opportunities. Further, disinvestment in rural and urban economies, including reduction of manufacturing sector jobs, has affected social and
economic conditions across regions of our state. Children are particularly vulnerable to the impacts of lower household income, which can lead to lasting effects on academic achievement, earning potential, and health into adulthood. The COVID-19 pandemic has exacerbated barriers to opportunity, including increased unemployment. Of note, the temporary Child Tax Credit (CTC) implemented in response to
the pandemic likely reduced poverty substantially and closed gaps between racial groups. One study showed that families planned to use the CTC for “emergency savings, routine expenses, essential items, purchasing more or better food, and paying for health care and childcare” expenses.
Children Living in Poverty
Percentage of Children Living in Poverty
• National data show that 16.8% of children under 18 lived in poverty in 2019. Wisconsin fared slightly better at 13.5%. Minnesota (11%) and Iowa (12.8%) fare better than
Wisconsin. The range spans from 8.1% in New Hampshire to 27.6% in Mississippi.
Children Living in Poverty in Wisconsin by Urbanicity and Race/Ethnicity

Race/Ethnicity
Percentage of Children Living in Poverty in WI
• Racial inequities persist in Wisconsin. Poverty rates are higher for American Indian and Alaska Native, Asian/Pacific Islander, Black, and Hispanic children compared to White children. In
Wisconsin, the average annual income for White or Asian households is about $10,000 higher than for American Indian and Alaska Native, Black, or Hispanic households. American Indian and Alaska Native and Black people continue to experience higher unemployment rates compared to White, Asian, or Hispanic households. Initial data show that the pandemic maintained, and potentially worsened, the unemployment gap.
• Within Wisconsin, the highest rates of children living in poverty are in Milwaukee and rural areas (24% and 15%, respectively) compared to small metropolitan and suburban counties (11% and
7%, respectively). Patterns of racial inequity exist across rural and urban communities. Rates are typically highest for all racial and ethnic groups of color in rural counties and Milwaukee. For example, while 15% of children in rural Wisconsin live in poverty, 26% of Black children in rural Wisconsin live in poverty.

• The total number of White children living in poverty is greater than any other racial and ethnic
group. This reflects the fact that the White population is the largest among Wisconsinites. Similarly, the total number of children living in poverty is highest in Wisconsin’s smaller metro counties (more than 57,000), while more than 13,000 children live in poverty in Wisconsin suburbs.

Number of Children Living in Poverty in WI

Call to Action
In a nation with immense economic wealth, no child should grow up in poverty, regardless of where
they live, how they look, or their family circumstances. State and national policies for reducing poverty can benefit all groups and areas in the state. Recommendations include:
• Increasing or supplementing income and supporting asset development in low-income households through efforts like expanding BadgerCare Plus, making permanent the 2021 Child Tax Credit, expanded earned income tax credits, jobs that pay a living wage, and subsidized asset accumulation programs.
• Investing in education from early childhood through adulthood – such as publicly-funded pre-kindergarten or career and technical education – that can help students develop social and work-ready skills that will advance their education and career potential.