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Workforce Investments and Poverty Dynamics

Author

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  • Kraybill, David S.

    (The Ohio State University)

  • Weber, Bruce A.

    (Oregon State University)

Abstract

A dynamic economic simulation model is developed to assess the potential for a workforce investment program to reduce household poverty. The program provides income to previously unemployed individuals, but when the program is administered to large numbers of persons, the aggregate effect is to increase the supply of labor and lower wages of currently employed workers slightly. The net effect on poverty depends on the number of new workers, the responsiveness of exports to changes in costs of production, and the responsiveness of the poverty rate to wage rate changes. The model results suggest that workforce investment strategies, by themselves, have only a modest impact on the poverty rate.

Suggested Citation

  • Kraybill, David S. & Weber, Bruce A., 2001. "Workforce Investments and Poverty Dynamics," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 237-254, Winter.
    • Handle: RePEc:rre:publsh:v:31:y:2001:i:3:p:237-254
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    References listed on IDEAS

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    1. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
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    3. Timothy J. Bartik, 1993. "The Effects of Local Labor Demand on Individual Labor Market Outcomes for Diffrerent Demographic Groups and the Poor," Upjohn Working Papers 93-23, W.E. Upjohn Institute for Employment Research.
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