ERIC Number: ED306323
Record Type: Non-Journal
Publication Date: 1989-Mar-21
Reference Count: N/A
Making Work Pay: A New Agenda for Poverty Policies.
Shapiro, Isaac; Greenstein, Robert
Restoring the value of the minimum wage and expanding the Earned Income Tax Credit (EITC) by family size could significantly reduce family poverty and "make work pay." Recent poverty policies have largely ignored those who work but still remain poor. The majority of these working poor are in their prime working years (aged 22 to 64), most are white, and a disproportionately large number live in rural areas. Most of the children living in poverty are members of working poor families. The largest single factor that has contributed to the increase in the number of the working poor since the late 1970s has been the drop in the value of the minimum wage. Restoring the minimum wage and expanding the EITC are complementary policies necessary to guarantee that parents working full-time and their children will not have to live in poverty. One reform may not substitute for the other. Restoring the minimum wage to its traditional level can bring full-time earnings back to the poverty line for a family of three. Reforms in the EITC can bring most families of more than three people up to, or close to, the poverty line if the family has one full-time worker. Proposed reform legislation is analyzed and compared. Statistical data are included on two graphs. Discussions of the value of the minimum wage, and the relationship between the minimum wage and employment opportunities are included in the appendices. A separate executive summary is also included. (FMW)
Descriptors: Employment, Family Income, Family Programs, Federal Legislation, Laws, Low Income, Low Income Groups, Minimum Wage, Minimum Wage Legislation, Poverty, Public Policy, Rural Family, Tax Credits
Center on Budget and Policy Priorities, 236 Massachusetts Avenue, NE, Suite 305, Washington, DC 20002.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Center on Budget and Policy Priorities, Washington, DC.