PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Illinois Policy Institute launches the Center for Poverty Solutions to reduce poverty in Chicago

CHICAGO (Sept. 26, 2023) – Sixty years and nearly $12 trillion since President Lyndon Johnson declared the War on Poverty, 17.2% of Chicagoans still live in poverty – over 450,000 men, women and children struggling every day.

Poverty is one of the biggest issues facing Chicago, which has one of the highest poverty rates and the fourth-largest impoverished population in the nation. That’s why the Illinois Policy Institute has launched the Center for Poverty Solutions to help reduce poverty. The center will work directly with service providers, studying what policies help Chicagoans find independence and advocating for their widespread implementation through legislation.

“The current system for fighting poverty isn’t working. Government programs have provided temporary relief, but they rob people of their self-worth and create dependency that lasts for generations. The center’s efforts focus on restoring their dignity through work,” said Matt Paprocki, president and CEO of the Illinois Policy Institute. “Too many families must choose between struggling to make ends meet while working or working less and receiving greater benefits from the government. Our goal is that poverty in Chicago looks radically different 10 years from now.”

In its inaugural, diagnostic report, “How to better assess poverty in Chicago, U.S.,” the center finds poverty rates are higher among Chicago’s minority populations, those with less education, children and those who are unemployed.

Studying the demographics of Chicago’s impoverished populations may provide clues for how to reduce poverty. Experts say potential solutions could focus on incentivizing full-time, year-round employment, removing regulations and improving the quality of education.

The Center for Policy Solutions report found the following about poverty in Chicago:

• Chicago’s poverty rate is well above the U.S. city average of 15.9%.
• Employment is the most important factor impacting the poverty rate. Nearly 202,000 Chicagoans, or 61% of those in poverty, were entirely out of the labor force – neither working nor looking for a job. The bulk are working age. Chicagoans working a full-time job face poverty rates of only 2.3%.
• The highest poverty rate among age groups is for children under 18, with 1 in 4 children experiencing poverty. This is higher than the average for U.S. cities.
• Black Chicagoans face a 28.7% poverty rate, or nearly triple that of white Chicagoans who are at 10.3%. The Hispanic and Latino population faces a 14.8% rate. The Asian population has an 18.2% rate.
• Females make up 56% of those in poverty. Single mothers face high poverty rates at 27.1%.
• More education is associated with less poverty – with Chicago seeing a 26.5% poverty rate for those without a high school diploma, a 21.5% rate among high school grads, and a 6.5% rate for those with bachelor’s degrees.

“The true cost of poverty is devastating to the Illinois economy. Factor in productivity, crime and health outcomes, and the price-tag is hundreds of millions of dollars each year,” said Bryce Hill, director of fiscal and economic research at the Illinois Policy Institute.“Addressing the root causes of poverty has as much of a positive economic impact as it does a humanitarian one. This should be top of mind for every Chicagoan.”

To read the Center for Poverty Solutions report, “How to better assess poverty in Chicago, U.S.,” visit illin.is/poverty.

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.