Poverty Theories and Income Maintenance : Validity and Policy Relevance

The purpose of this paper is to challenge the validity and policy relevance of the two major types of poverty theories: the cultural theory and the ~tructural theory. The two types of theories are defined and the evidence for them is assessed. As the theories are almost entirely based upon case studies, the assessment utilizes methodologically more rigorous research as well as an internal analysis of the case studies themselves. It" is concluded that there is little evidence to support either of the theories. Independently of the issue of validity, the policy relevance of the theories also is explored, since their dubious validity is insufficiently known and they continue to provide rationalizations for poverty policies. The policy relevance of the theories is examined with regard to a variety of income maintenance programs," and it is argued that in practice the theories differ little in their policy implications and both are of marginal utility. An alternative perspective on the analysis of poverty is presented. POVERTY THEORIES AND INCOME MAINTENANCE: VALIDITY AND POLICY RELEVANCE David Elesh University of Wisconsin