The economic well-being of low-income families is affected by sudden and unpredictable events such as illness or job losses. One goal of the Low-Income Working Families project is to document the experiences of low-income working families and examine the factors that contribute to the economic security of these families.
Advancement
The paper, "Partnering with Employers to Promote Job Advancement for Low-Skill Individuals," explores the reasons why employer partnerships are important for improving economic outcomes for both low-skill workers and businesses. It identifies the factors that have hindered the growth of these partnerships as well as promising approaches—incumbent worker training and sectoral training—to build partnerships, and concludes with a discussion of policy considerations for creating and sustaining partnerships.
Risk and Volatility: Income Changes among Working Families with Children
The paper, "America Insecure: Changes in the Economic Security of American Families" synthesizes findings from a series of Urban Institute reports produced under the "Risk and Low-Income Working Families" research initiative funded by the John D. and Catherine T. MacArthur and Annie E. Casey Foundations. The paper places this research in the broader context of literature on economic mobility and income volatility and addresses two key questions: (1) How have economic instability and insecurity for America's low-income working families changed over time? and (2) What are the key factors for substantial income losses and recoveries from such losses?
The brief, "Risk and Recovery: Understanding the Changing Risks to Family Incomes," examines the likelihood that non-elderly individuals in families with children experience a substantial drop in family income over four-month periods and the likelihood that their family income would later return to pre-decline levels.
The paper, "Disability Onset among Working Parents: Earnings Drops, Compensating Income Sources and Health Insurance Coverage," focuses on incomes losses associated with work-limiting disability using the 1996 and 2001 panels of the Survey of Income and Program Participation. The paper found that nearly 10 percent of employed parents developed or had a recurring disability over the course of the panel and for about a quarter of this group, earnings dropped by more than 25 percent of family income, with other income sources offsetting only a small fraction of lost earnings.
The Role of Assets and Health on Income Volatility
Savings can help low-income households cope with income instability and unexpected expenses, according to new evidence presented in "Can Savings Help Overcome Income Instability?" For households with nonelderly heads in the lowest income quintile, modest holdings of liquid assets can significantly reduce the probability of hardships with health care, housing payments, food security, utility and phone bills, and basic consumption. Programs to promote saving can help low-income households protect themselves from economic shocks.
While unpredicted household events such as becoming disabled and changes in household composition can directly affect household income, the impact of these events on household consumption and overall material well-being may be mitigated if the household holds assets. Boosting assets enables individuals and households to invest in life goals and to enhance long-term economic stability and social protections. The fact sheet, "A Quick Look at U.S. Households and Their Assets," drawn from Asset Building and Low-Income Families, by Signe-Mary McKernan and Michael Sherraden, presents an array of key statistics.
Latest Research
