The United States is currently struggling with how to best address persistent poverty and the high rates of social problems associated with its existence in urban centers (Hoechstetter, 1996; Jennings, 1994). Moore and Pinderhughes (1993) characterized the debate on the as who is responsible for the condition of the poor - the individual or society? Is persistent poverty caused by behavioral pathology or the economic structure? (p. xii). The answers to these questions have profound implications for the development of strategies to eliminate persistent poverty. Unfortunately, the debate has taken a deficit perspective toward communities (Saleebey, 1992, 1996) and has ignored community assets in the search for revitalization strategies (Kretzmann & McKnight, 1993; McKnight & Kretzmann, 1991). A focus on community social problems has a long historical record in the United States (Halpern, 1995): The neighborhood has long been an important locus for efforts to address the causes and consequences of poverty in American society. Over the course of the past century neighborhood-based initiatives have been called on to reduce class conflict, counter feelings of anger and alienation, localize control of institutions, create jobs and reverse neighborhood decline, and address a variety of specific poverty-related problems. (p. 1) Thus, the revitalization of neighborhoods presents many challenges for social work and other professions in helping to promote policies and services that address the needs of communities in a manner that meaningfully involves their populations in the decision-making process. Much attention has been paid to the high-risk environment of inner-city children and their families (Kozol, 1995) and the need for government (local, state, and federal) and the private sector to collaborate to create positive change at the community level (Perez & Martinez, 1993). Any efforts to revitalize these communities must enhance local assets. This article examines the nature and extent of persistent poverty among one population of color - the Latino population. A case study of Latina-owned beauty parlors in a large New England city illustrates the multifaceted role Latino businesses can play in the social-economic network of the community. Implications for social work practice in Latino communities are presented. Literature Review Poverty There are an estimated 22 million Latinos in the United States (Castex, 1994). The median income for Latino families is $23,884, compared to $39,239 for non-Latino white families (Institute for Puerto Rican Policy, 1993). All Latino groups have incomes below the national median (Holmes, 1996); Puerto Rican families have the lowest income of any group ($20,654), followed by Mexican families ($23,018). Cuban families have the highest median income of any Latino group ($30,095). Puerto Rican families have the highest percentage of people living below the poverty rate (39.4 percent), followed by Mexican families (29.5 percent), Central or South American families (24.6 percent), other Latino families (20.6 percent), and Cuban families (18.0 percent). These rates are in sharp contrast with the poverty rate of 9.4 percent for non-Latino white families (Institute for Puerto Rican Policy, 1993). However, despite the high concentration of poverty among most Latino subgroups, they have not received sufficient national attention. Enchautegui (1994) identified five reasons for this inattention: (1) misperceived identity, (2) lack of widespread attention to the working-poor population, (3) geographical concentration, (4) lack of political participation, and (5) differences among Latino subgroups. The interplay among these factors has resulted in Latinos being considered invisible in national policy. The literature on Latino poverty can be categorized into three schools of thought (Borges-Mendez, 1993; Enchautegui, 1994; Hurtado, 1995; Institute for Puerto Rican Policy, 1996; Melendez, 1993; Moore & Pinderhughes, 1993; Morales & Bonilla, 1993; Perez & Cruz, 1994; Perez & Martinez, 1993; Segura, 1992; Torres, 1995): (1) Poverty is the result of an interplay between immigrant status and rapid demographic changes (high rates of female-headed households and fertility); (2) Latinos are an underclass (low formal educational achievement and lack of or inconsistent employment history); and (3) a lack of market-attractive skills exclude Latinos from high-wage jobs. …
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