Thursday, August 09, 2018

New research on persistent poverty and joblessness in America - AEI

New research on persistent poverty and joblessness in America - AEI
"Many people in America think poverty is a constant state for those who experience it. 
Many also think most poor people hold steady jobs. 
...But the study revealed a strong connection between joblessness and long-term poverty. 
See the source imageAmong those households that were persistently poor, 72.1 percent spent some time jobless and almost 40 percent spent at least three-quarters of the months without a job. 
This directly contradicts any belief that most poor households work consistently.
According to the paper:
The idea that consistently working people (that is, the “working poor”) make up a large share of those in persistent poverty was not borne out in the data. 
...This suggests that policies that increase labor force attachment would have a larger effect on reducing persistent poverty than policies to increase wages, unless they also increase steady employment. 
Better identifying why adults in persistently poor households experience joblessness and what policies can help them avoid joblessness more consistently should be the next step in reducing the persistence of poverty."
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