The Effect of Economic Restructuring on Family Poverty in the Industrial Heartland, 1970–1990

This study examines changes in family poverty in Ohio cities, suburbs and nonmetropolitan counties at the hands of economic restructuring for the periods 1970–1980 and 1980–1990. The restructuring process involves both a loss of manufacturing jobs and an increasing reliance on the service industry for employment. As such, restructuring is conceptualized as a major transformation that is disruptive to the social system, at least in the short run. It is hypothesized that loss of manufacturing jobs increases family poverty, that central city location is associated with greater poverty in comparison to suburbs and nonmetropolitan counties and that gains in service sector employment alleviate family poverty. Results support the manufacturing and location hypotheses. However, the analysis demonstrates that in the later period, increases in service industry employment increased family poverty.