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Poverty among Working Families: New Insights from an Improved Poverty Measure

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  • John Iceland
  • Josh Kim

Abstract

Objective. This article examines poverty among working families with children using a refined experimental poverty measure based on recommendations by the National Academy of Sciences Panel on Poverty and Family Assistance. Methods. Using data from the 1998 Current Population Survey, this research constructs an experimental poverty measure that takes into account noncash government benefits as well as job‐related expenses, elements not included in the current official measure of family income. Results. We find that current statistics based on the official poverty line understate the extent of economic hardship, particularly among full‐time working families with children, because expenses, such as child care costs, tend to outweigh noncash benefits, such as food stamps, that these families may receive. Furthermore, without the recent expansion of the Earned Income Tax Credit, poverty among full‐time working families would be even higher. Conclusions. These findings highlight challenges faced by many families, especially those with adults moving off welfare and into the labor market.

Suggested Citation

  • John Iceland & Josh Kim, 2001. "Poverty among Working Families: New Insights from an Improved Poverty Measure," Social Science Quarterly, Southwestern Social Science Association, vol. 82(2), pages 253-267, June.
    • Handle: RePEc:bla:socsci:v:82:y:2001:i:2:p:253-267
    DOI: 10.1111/0038-4941.00021
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    Cited by:

    1. Udaya R. Wagle, 2012. "The Food Stamps Program and Economic Security Among Low‐Income Families, Part I," Poverty & Public Policy, John Wiley & Sons, vol. 4(4), pages 223-238, December.
    2. Maria Cancian & Daniel R. Meyer, 2004. "Alternative measures of economic success among TANF participants: Avoiding poverty, hardship, and dependence on public assistance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 531-548.
    3. Chau-kiu Cheung & Kwan-kwok Leung, 2008. "Ways by which Comparable Income Affects Life Satisfaction in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(1), pages 169-187, May.
    4. Hsien-Hen Lu & Julian Palmer & Younghwan Song & Mary C. Lennon & J. Lawrence Aber, 2004. "Children facing economic hardships in the United States," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 10(11), pages 287-338.
    5. Pascale Breuil-Genier & Sophie Ponthieux & Jean-Paul Zoyem, 2001. "Profils sur le marché du travail et caractéristiques familiales des actifs pauvres," Économie et Statistique, Programme National Persée, vol. 349(1), pages 99-124.
    6. David Brady & Jennifer Moren Cross & Andrew Fullerton, 2010. "More than Just Nickels and Dimes: A Cross-National Analysis of Working Poverty in Affluent Democracies," LIS Working papers 545, LIS Cross-National Data Center in Luxembourg.

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