Structural Reinterpretation of Poverty by Examining Working Poverty: Implications for Community and Policy Practice

This exploratory research focused on the structural context of working poverty, thereby transcending its individual or behavioral aspects. Two major questions guided this study: (1) How are the working poor different compared to the working nonpoor? (2) How do structural conditions affect the chances of one being working poor? Central findings of the study were that four primary sets of factors—demographic, human capital, employment barriers, and labor market positions— contribute to an individual’s likelihood of being among the working poor. The structural factors— employment barriers and labor market positions—significantly contributed to the effects of human capital and demographic variables. All four factors require attention in community and policy practice to improve the lot of American workers in an increasingly global marketplace. 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: 10.1606/1044-3894.3645 ©2007 Alliance for Children and Families Danziger, & Heflin, 2000; Harris, 1996; Kalil et al., 1998; Regenstein, Meyer, & Hicks, 1998). In particular, women with little schooling, little work experience, and large families are more likely to return to welfare (Harris, 1996). Those for whom welfare is no longer an option often join the ranks of the working poor (Cheng, 2003). As studies have pointed to increasing numbers of welfare exiters finding themselves in low-income jobs (Corcoran, Danziger, Kalil, & Seefeldt, 2000; Coulton, 1996; Loprest, 1999; McCrate, 1997), the policy debate has gradually shifted from poverty to the “forgotten” or “invisible” working poor (Shipler, 2005). Relating welfare reform to working poverty has been encouraged by some studies (Albelda, 1999; Coon et al., 2000; Hong, 2004; O’Connor, 2000), and policymakers and policy analysts have become increasingly concerned about the challenges facing this segment of the poor (Acs, Phillips, & McKenzie, 2000). Although poverty has lost ground as a public issue, a new focus on the working poor can help focus a policy debate that approaches poverty in a more comprehensive manner. Examining the issue of working poverty is important for several reasons. First, it is a social justice, or “righteousness,” issue (Shipler, 2005). The working poor are among the fastest growing segments of the poor, and this trend is projected to continue (Kim, 1998b; Rocha, 1997). When someone in America works hard and becomes, or remains, poor, America’s strong emphasis on a work ethic and its dream for prosperity come into question. Second, the working poor are economically vulnerable. They are twice as likely as other workers to become unemployed, and consequently experience economic hardships (Corcoran & Hill, 1980). Poor workers and their families receive lower health care benefits due to access barriers (Ahmed, Lemkau, Nealeigh, & Mann, 2001; Guendelman, Wyn, & Tsai, 2002; Wolfe, 1994) and lower social security benefits upon retirement (Ozawa, 1982). Third, economic vulnerability undermines family functioning. It increases psychological stress, which reduces family and marital satisfaction (Voydanoff & Donnelly, 1988), and decreases the quality of parenting (Danziger & Danziger, 1995; Dyk, 2004). Fourth, economic difficulties hinder cognitive and socioemotional development of children (Korenman, Miller, & Sjaastad, 1995). Children in working poor families are at greater risk for experiencing behavioral problems and academic failure (De Civita, Pagani, Vitaro, & Tremblay, 2004). This exploratory research investigated the structural conditions that contribute to the plight of the working poor. Two major questions guided this study: (1) How do the working poor differ from the working nonpoor by individual and structural correlates of poverty? (2) How do various structural conditions affect the chances of one being among the working poor? Working poverty focuses on everyone who is in the labor market. By keeping employment status constant, the worthiness of those who are poor is unquestionable. This allows us to investigate poverty among workers relative to their demographic and human capital characteristics, as well as employment barrier and labor market positions.