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For the past two decades, U.S. anti-poverty policy has coalesced around the idea that work should be at the center of anti-poverty programs. Bipartisan welfare reform in the 1990s focused on work requirements and time limits. The growth and popularity of the Earned Income Tax Credit (EITC), which increases the after tax income for those working near the bottom of the wage distribution, has also emphasized the importance of work. Recently, proposals to require work for those receiving a variety of benefits, including Medicaid, SNAP, and public housing, continue this employment focus.
Among the poor aged 18 to 64, 40.8 percent worked for some part of the year and many of those not working reported barriers to paid work, or reported engagement in other productive activities in 2014. Using Current Population Survey data, I calculate that 18.9 percent of the poor ages 18 to 64 did not work due to disability, 10.6 percent were in school, and 5.9 percent were unemployed and looking for work.
Calls to increase work requirements among those receiving government assistance should recognize that most poor adults are already working, looking for work, or are disabled or ill. Increasing work among the poor may require addressing barriers to work including work-limiting disability or illness. While work may be a policy goal on its own, requiring work will not necessarily raise families above the poverty line. Given the level of wages in the lower fifth of the wage distribution, many workers, especially those who are parents, will need 50 weeks or more of full-time work to reach the poverty line.
Read the full article about work requirements and poverty by Ann Huff Stevens at PBS News Hour.