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A Comprehensive Profile of the Working Poor

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  • David Gleicher
  • Lonnie K. Stevans

Abstract

. In this paper, a comprehensive profile of the ‘working poor’ is presented using data from the 2003 March Supplement of the Current Population Survey. We test an earnings model with effective cost constraints. The dependent variable is the likelihood of an employed individual being a member of the working poor. The explanatory variables are the worker's occupation and firm characteristics, and cost constraints comprising, on the one hand, the worker's family characteristics (notably family income), and, on the other, the costs to the worker of signals used by firms in making employment decisions. These include not only the cost of education but also what we call ‘discriminatory signals’, e.g. gender, race, ethnicity and citizenship status. The paper provides new insight into the complex set of relationships between the signaling variables themselves, between signals and occupations, and between industries and occupations, in the formation of relative wage rates.

Suggested Citation

  • David Gleicher & Lonnie K. Stevans, 2005. "A Comprehensive Profile of the Working Poor," LABOUR, CEIS, vol. 19(3), pages 517-529, September.
    • Handle: RePEc:bla:labour:v:19:y:2005:i:3:p:517-529
    DOI: 10.1111/j.1467-9914.2005.00301.x
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    References listed on IDEAS

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    1. Swaffield, Joanna, 2000. "Gender, motivation, experience and wages," LSE Research Online Documents on Economics 20188, London School of Economics and Political Science, LSE Library.
    2. Macho-Stadler, Ines & Perez-Castrillo, J. David, 2001. "An Introduction to the Economics of Information: Incentives and Contracts," OUP Catalogue, Oxford University Press, edition 2, number 9780199243259.
    3. Joanna Swaffield, 2000. "Gender, Motivation, Experience and Wages," CEP Discussion Papers dp0457, Centre for Economic Performance, LSE.
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    Cited by:

    1. Joël Hellier, 2012. "Working Poor Trajectories," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 83-102, November.
    2. Robson, Doug & Rodgers, Joan R, 2008. "Travail to No Avail? Working Poverty in Australia," Economics Working Papers wp08-08, School of Economics, University of Wollongong, NSW, Australia.
    3. Joan Rodgers & Douglas Robson, 2008. "Travail to No Avail? Working Poverty in Australia Since 2000," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 7-25.
    4. Asaf Levanon & Einat Lavee & Roni Strier, 2021. "Explaining the Factors Shaping the Likelihood of Poverty Among Working Families by Using a Concurrent Mixed Method Design," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 1089-1109, October.
    5. Joel Hellier & Ekaterina Kalugina, 2015. "Globalization and the working poor," Working Papers 355, ECINEQ, Society for the Study of Economic Inequality.
    6. Filandri, Marianna & Struffolino, Emanuela, 2019. "Individual and household in-work poverty in Europe: understanding the role of labor market characteristics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(1), pages 130-157.

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