Post on 28-Dec-2015
Developing Opportunities for Low Wage Workers
Evelyn GanzglassCenter for Law and Social Policyeganzglass@clasp.orgwww.clasp.org
28 million low wage workersPoverty level for family of 4 = $18, 400 yr 9/hr in 2003
Nearly 1 in 4 workers 58% women 7% teenagers 58% white 24% > high school diploma 37% high school diploma 25% some college
Average wage: $7.09 50% workers earned>$14.15/hr (2004)
Minorities & women over-represented in low-wage labor market
31% of all African American workers are low income
40% of Latino workers 20% of White workers 30% of women workers, more
among minorities
Characteristics of low wage jobs
Decline in real wages (Families working 500 more hrs/yr than in the late ’70s to make ends meet)
Few, if any benefits (20% in bottom quintile have employer-provided health benefits)
No leave, paid or otherwise Irregular hours; just in time staffing;24/7 Intermittent employment Vulnerable to out-sourcing and technology Limited opportunities for career
advancement (loss of middle income jobs)
Workers stuck in low wage jobs
Probability of prime-age minimum wage worker advancing over 3 years (1992-2003)
37% staying in low-wage jobs 39% moving to better job Female: 41% staying; 33% moving up Foreign born: 47%; 29% Less than high school: 49%; 31% College grad: 20%; 62%Boushey, CEPR using SIPP panels
Industry and Occupation Matters
Job hopping in similar jobs doesn’t help, but
Moving out of (or never working in) industry with high concentration of low wage workers does
So does working in a union job and Working in a state with higher than
federal minimum wage (21 states,4 cities, 140 living wage initiatives)
Boushey, CEPR using SIPP panels
Education important, but not enough
Economy is producing 25-30% fewer good jobs than 25 years ago (CEPR)
Since mid 1970’s real median income hasn’t kept up with productivity growth (22%:80%) (EPI)
BLS 2002-2012: Of the 15 fastest growing occupations, 6 are in the lowest quintile; 3 in the highest
TANF Recipients Working Poor
More than 50% decline in caseloads Increase in employment of TANF
recipients: 71% worked at some point in 1st year after leaving welfare, but only 37% worked full year
In Wisconsin, most families remained poor 6 years post TANF; only 16% had earnings above fed poverty line; 60% were extremely poor (25% below federal poverty line)
WIA services to TANF and other low income populations are falling short
2000Intensive
2004Intensive
2000 Training
2004Training
Low-income 74.7 66.9 82.4 65.5%
Public Assistance Recipients 15.4 10.7 16.6 11%
Single Parents 25.9 18.8 34.5 24.2%
Limited English-language Proficiency 9.6 6.6 10.5 4.1%
No High School Diploma/GED 22.8 21.5 17.8 14.0%
Share of Disadvantaged Adults Served has Declined
WIA can help low income workers access better jobs by:
Increasing investments in initial and upgrade training
Targeting employer services to high road employers (reduce turnover, improve HR functions, front-line supervision)
Targeting job search/job job placement services on better jobs/employers
Using on-the-job training subsidies Partnering with TANF
Increase focus on job retention & advancement
Retention and advancement strategies show some promise
Income supplements increase employment, earnings, retention, education/ behavior of younger children
National Work Advancement and Support Center Demonstration (Dayton, San Diego, Bridgeport +2)
Support job retention & advancement by increasing access to work supports
Among working families with children with income below 200% of poverty in 2001*: 27% received food stamps 57% had a child or children receiving
Medicaid/SCHIP 27% had a parent receiving Medicaid 10% received child care assistance 38% received none of these benefits 84% were eligible for EITC
o 37 % of single mothers receive child support
*Source: Zedlewski, et. al, Is there a System Supporting Low-Income Working Families? (Urban Institute)
WIA can help improve job quality for low income workers through:
Sectoral strategies to strengthen industry competitiveness, improve job quality and build career pathways
Attaching job quality standards to economic and workforce development contracts/incentives for private industry to take the high road
Partnering with local economic development in disadvantaged communities (EZ/EC, CDFIs)