Work, Poverty, and Social Benefits over the Past Three Decades

Policymaking that aims to protect families and foster economic growth ought to be informed by a clear understanding of how employment, benefits, and family well-being interact. Here, we conduct a broad assessment of employment trends among low-income Americans, showing that, in recent decades, people with low income have become more highly educated and less likely to be married, and the share that is Hispanic has increased. We also find that these shifting characteristics do little to explain change in employment over time. Our findings also contribute to a growing literature that documents how social benefits for nonelderly adults increasingly reward and encourage work: benefits have become more generous to low-income adults with children who have substantial earnings, while they have remained relatively stable for childless adults. Low-income families with children and substantial earnings received more income from social benefits in the past decade than they did 30 years ago.