351
B
arbara Ehrenreich’s Nickel and Dimed (Collins, 2002;
Curran, 2002) and David Shipler’s The Working Poor
(Hacker, 2004; Lenkowsky, 2004) popularize many of
the struggles working poor individuals face to make ends
meet. Ehrenreich’s and Shipler’s portraits of working poor
individuals imply that the term working poor should be an
oxymoron—no one who works hard should be poor in the
U.S. (Schwartz, 2004). Playing by the rules in the U.S.
invariably implies that those who work should not have to
suffer indignities associated with poverty status (Trumka,
2004), yet there are no assurances that the economy can
generate the requisite number of jobs at sufficiently high
wages to lift those who do work above the poverty thresh-
olds, especially over sustained periods of time. Short-term,
intermittent poverty, even if accompanied by work, is
much less problematic economically and psychologically
than sustained poverty accompanied by work, which does
not seem just (Newman, 2004; Zawicki, 2005).
In 1996, when Congress ended the federal entitlement
provision of means-tested cash assistance to able-bodied
persons (Pub. L. No. 104-193), it may have unwittingly pre-
pared the way for the realization that some able-bodied
people may require sustained public assistance (Danziger,
Corcoran, Danziger, & Heflin, 2000; Dickerson, 1999). Early
localized studies of the impact of the legislation between
1998 and 2001—which were relatively good economic
times with a tight labor market—indicated that welfare rolls
declined significantly, with many TANF (Temporary
Assistance for Needy Families) recipients more likely to be
employed and better off financially, but most nonetheless
remained poor [italics added] (Seith, Rich, & Richburg-
Hayes, 2007). Further, as Seith et al. note, localized outcome
studies during the recession years of 2001 and 2002 also
indicated that only about half of those leaving TANF expe-
rience an increase in income, and these persons still needed
a combination of food stamps, earned income tax credits,
and other public benefits such as health care insurance for
children to lift their families to poverty thresholds.
To begin to get a handle on the potential need for pub-
lic assistance for able-bodied persons, this paper assesses
the incidence and prevalence of working and remaining
poor in the United States among a nationally representa-
tive sample of youth over a 25-year period. An earlier lon-
gitudinal study of persons ages 20 to 85 indicated that by
Working and Poor: A Panel Study of
Maturing Adults in the U.S.
Richard K. Caputo
ABSTRACT
This study uses data from the National Longitudinal Survey of Youth and highlights the extent of
poverty and working poverty between 1986 and 2004 (N = 5,164). Over one third (34.2%) of the
study sample lived in a poor family at least one year, and nearly one fourth (24.2%) lived in a
working poor family at least one year. In addition, almost three fourths (70.1%) of those who
lived in a poor family at least one year also lived at least one year in a working poor family.
Differences were found by gender and race/ethnicity. Findings suggest that poverty as a social
problem is better formulated in terms of working rather than nonworking poverty and that
gender and race/ethnicity disparities are prevalent. Policy options, such as expansion of the
earned income tax credit and implementation of a basic income guarantee, are explored.
CONSTRUCTS OF POVERTY AND DEMOGRAPHICS OF THE WORKING POOR
This article is part of the "Working But Poor: Next Steps for Social Work Strategies and Collaborations"
special issue of Families in Society with guest editor Sondra J. Fogel. www.familiesinsociety.org
Families in Society: The Journal of Contemporary Social Services | www.familiesinsociety.org | DOI: 10.1606/1044-3894.3644
©2007 Alliance for Children and Families