As the distribution of wealth between rich and poor in the United States grew more and more unequal over the past twenty years, this economic gap assumed a life of its own in the popular culture. The news and entertainment media increasingly portrayed the lives of the poor with such stereotypes as the lazy welfare mother and the thuggish teen, offering Americans few ways to learn how the "other half" really lives. Laboring Below the Line works to bridge this gap by synthesizing a wide range of qualitative scholarship on the working poor. The result is a coherent, nuanced portrait of how life is lived below the poverty line, and a compelling analysis of the systemic forces in which poverty is embedded, and through which it is perpetuated.

Laboring Below the Line explores the role of interpretive research in understanding the causes and effects of poverty. Drawing on perspectives of the working poor, welfare recipients, and marginally employed men and women, the contributors—an interdisciplinary roster of ethnographers, oral historians, qualitative sociologists, and narrative analysts—dissect the life circumstances that affect the personal outlook, ability to work, and expectations for the future of these people. For example, Carol Stack views the work aspirations of an Oakland teenager for whom a job is important, even though it strains her academic performance. And Ruth Buchanan looks at low-wage telemarketing workers who are attempting to move up the economic ladder while balancing family, education, and other important commitments. What emerges is a compelling picture of low-wage workers—one that illustrates the precarious circumstances of individuals struggling with the economic conditions and institutions that surround them Each chapter also explores the capacity for economic survival from a different angle, with ancillary commentary complementing the ethnographies with perspectives from other fields of study, such as economics.

At this moment of governmental retrenchment, ethnography's complex, nonstereotypical portraits of individual people fighting against poverty are especially important. Laboring Below the Line reveals the ambiguities of real lives, the potential for individuals to change in unexpected ways, and the even greater intricacy of the collective life of a community.

FRANK MUNGER is professor of law and adjunct professor of sociology at the State University of New York at Buffalo.

CONTRIBUTORS: Frances Ansley, Ruth Buchanan, Aixa N. Cintron-Velez, Kathryn Edin, Michael Frisch, Joel F. Handler, Philip Harvey, Julia R. Henly, Sanders Korenman, Laura Lein, Timothy Nelson, Carl H. Nightingale, Saskia Sassen, Carol Stack, Lucie White.
 

Sharp decreases in union membership over the last fifty years have caused many to dismiss organized labor as irrelevant in today’s labor market. In the private sector, only 8 percent of workers today are union members, down from 24 percent as recently as 1973. Yet developments in Southern California—including the successful Justice for Janitors campaign—suggest that reports of organized labor’s demise may have been exaggerated. In L.A. Story, sociologist and labor expert Ruth Milkman explains how Los Angeles, once known as a company town hostile to labor, became a hotbed for unionism, and how immigrant service workers emerged as the unlikely leaders in the battle for workers’ rights.

L.A. Story shatters many of the myths of modern labor with a close look at workers in four industries in Los Angeles: building maintenance, trucking, construction, and garment production. Though many blame deunionization and deteriorating working conditions on immigrants, Milkman shows that this conventional wisdom is wrong. Her analysis reveals that worsening work environments preceded the influx of foreign-born workers, who filled the positions only after native-born workers fled these suddenly undesirable jobs. Ironically, L.A. Story shows that immigrant workers, who many union leaders feared were incapable of being organized because of language constraints and fear of deportation, instead proved highly responsive to organizing efforts. As Milkman demonstrates, these mostly Latino workers came to their service jobs in the United States with a more group-oriented mentality than the American workers they replaced. Some also drew on experience in their native countries with labor and political struggles. This stock of fresh minds and new ideas, along with a physical distance from the east-coast centers of labor’s old guard, made Los Angeles the center of a burgeoning workers’ rights movement.

Los Angeles’ recent labor history highlights some of the key ingredients of the labor movement’s resurgence—new leadership, latitude to experiment with organizing techniques, and a willingness to embrace both top-down and bottom-up strategies. L.A. Story’s clear and thorough assessment of these developments points to an alternative, high-road national economic agenda that could provide workers with a way out of poverty and into the middle class.

RUTH MILKMAN is professor of sociology and director of the Institute of Industrial Relations at the University of California, Los Angeles.

 Since its inception under President Ford in 1975, the Earned Income Tax Credit (EITC) has become the largest antipoverty program for the non-elderly in the United States. In 1998, more than nineteen million families received EITC payments, and the program lifted over four million Americans above the poverty line. Despite the rapid growth of the EITC throughout the 1990s, little has been written about how the program works or how it affects low-income families. Making Work Pay provides the first full-scale examination of the EITC, exploring its effects on income distribution, poverty, work, and marriage.

Making Work Pay opens with a history of the EITC -- its emergence in the 1970s as a pro-work, low-cost antipoverty program and its expansion through the 1980s and 1990s. The central chapters in the volume look at the substantial impact of the EITC on work incentives in recent years and show that the program, in combination with welfare reform and a strong economy, has led to an unprecedented increase in the employment of single mothers. In one study, researchers conclude that the EITC—with its stipulation that one family member be a wage earner—was the most important change in work incentives for single mothers between 1984 and 1996, a period when the employment rate of single mothers rose sharply. Several chapters outline proposals for reforming the program, addressing the concerns by policymakers about the work disincentives that rise as benefits fall with increasing income. Finally, Making Work Pay examines how EITC recipients view the credit and what they do with it once they get it. The contributors find that not only does EITC's lump-sum payment increase consumption but it also allows recipients to make changes in economic status. Many families use the end-of-the-year payment as a form of forced savings, enabling them to save for home improvement, a new car, or other purchases to improve their lives, and providing the extra economic cushion needed to move beyond mere day-to-day survival.

Comprehensive in scope, Making Work Pay is an indispensable resource for policymakers, administrators, and researchers seeking to understand the ramifications of the country's largest programs for aiding the working poor.

BRUCE D. MEYER is professor of economics at Northwestern University.

DOUGLAS HOLTZ-EAKIN is at the Center for Policy Research, Syracuse University.

CONTRIBUTORS:  Lisa Barrow, David T. Ellwood, Janet Holtzblatt, Jeffrey B. Liebman, Janet McCubbin, Leslie McGranahan, Michael O'Connor, Katherin Ross Phillips, Robert Rebelein, Jennifer L. Romich, Dan T. Rosenbaum, Timothy M. Smeeding, Dennis J. Ventry Jr., Thomas S. Weisner.

"Extremely coherent and useful, this much needed volume is concerned with the current status of the poor in Western industrial states. Its closely linked essays allow comparisons between case studies and are often themselves cross-national comparisons....The essays also comment on the meaning of globalization for social policy." —Choice

"Excellent and tightly integrated articles by a group of prominent international scholars....A timely and important book, which will surely become the basic reference point for all future research on inequality and social policy." —Contemporary Sociology

The social safety net is under strain in all Western nations, as social and economic change has created problems that traditional welfare systems were not designed to handle. Poverty, Inequality, and the Future of Social Policy provides a definitive analysis of the conditions that are fraying the social fabric and the reasons why some countries have been more successful than others in addressing these trends. In the United States, where the poverty rate in the 1980s was twice that of any advanced nation in Europe, the social protection system—and public support for it—has eroded alarmingly. In Europe, the welfare system more effectively buffered the disadvantaged, but social expenditures have been indicted by many as the principal cause of high unemployment.

Concluding chapters review the progress and goals of social welfare programs, assess their viability in the face of creeping economic, racial, and social fragmentation, and define the challenges that face those concerned with social cohesion and economic prosperity in the new global economy. This volume illuminates the disparate effects of government intervention on the incidence and duration of poverty in Western countries. Poverty, Inequality, and the Future of Social Policy is full of lessons for anyone who would look beyond the limitations of the welfare debate in the United States.

KATHERINE McFATE is associate director for social policy at the Joint Center for Political and Economic Studies in Washington.

ROGER LAWSON is senior lecturer in social policy at the University of Southampton, England.

WILLIAM JULIUS WILSON is Malcolm Wiener Professor of Social Policy at Harvard University.

CONTRIBUTORS: Timothy Smeeding, Lee Rainwater, Greg J. Duncan, Bjorn Gustafsson, Richard Hauser, Gunter Schmaus, Stephen Jenkins, Hans Messinger, Ruud Muffels, Brian Nolan, Jean-Claude Ray, Wolfgang Voges, Susan Mayer, Guy Standing, Peter Gottschalk, Mary Joyce, Sheila B. Kamerman, Nadine Lefaucheur, Siv Gustafsson, Ruth Rose, Sara McLanahan, Irwin Garfinkel, aul Osterman, Bernard Casey, Enrico Pugliese, Troy Duster, Alejandro Portes, Min Zhou,Ian Gordon, Loic Wacquant, Sophie Body-Gendrot, Colin Brown, Justus Veenman, Hugh Heclo, Roger Lawson, William Julius Wilson. 

The United Kingdom's labor market policies place it in a kind of institutional middle ground between the United States and continental Europe. Low pay grew sharply between the late 1970s and the mid-1990s, in large part due to the decline of unions and collective bargaining and the removal of protections for the low paid. The changes instituted by Tony Blair's New Labour government since 1997, including the introduction of the National Minimum Wage, halted the growth in low pay but have not reversed it. Low-Wage Work in the United Kingdom explains why the current level of low-paying work remains one of the highest in Europe. The authors argue that the failure to deal with low pay reflects a policy approach which stressed reducing poverty, but also centers on the importance of moving people off benefits and into work, even at low wages. The U.K. government has introduced a version of the U.S. welfare to work policies and continues to stress the importance of a highly flexible and competitive labor market. A central policy theme has been that education and training can empower people to both enter work and to move into better paying jobs. The case study research reveals the endemic nature of low paid work and the difficulties workers face in escaping from the bottom end of the jobs ladder. However, compared to the United States, low paid workers in the United Kingdom do benefit from in-work social security benefits, targeted predominately at those with children, and entitlements to non-pay benefits such as annual leave, maternity and sick pay, and crucially, access to state-funded health care. Low-Wage Work in the United Kingdom skillfully illustrates the way that the interactions between government policies, labor market institutions, and the economy have ensured that low pay remains a persistent problem within the United Kingdom.

CAROLINE LLOYD is a senior research fellow at the Economic and Social Research Council Centre on Skills, Knowledge, and Organizational Performance.

GEOFF MASON is senior research fellow at the National Institute of Economic and Social Research, London.

KEN MAYHEW is fellow in economics at Pembroke College, Oxford.

CONTRIBUTORS: Marilyn Carroll, Johanna Commander, Eli Dutton, Damian Grimshaw, Susan James, Dennis Nickson,  Matthew Osborne, Jonathan Payne, Robert Solow, Philip Stevens , Chris Warhurst.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

The positive social benefits of low unemployment are many—it helps to reduce poverty and crime and fosters more stable families and communities. Yet conventional wisdom—born of the stagflation of the 1970s—holds that sustained low unemployment rates run the risk of triggering inflation. The last five years of the 1990s—in which unemployment plummeted and inflation remained low—called this conventional wisdom into question. The Roaring Nineties provides a thorough review of the exceptional economic performance of the late 1990s and asks whether it was due to a lucky combination of economic circumstances or whether the new economy has somehow wrought a lasting change in the inflation-safe rate of unemployment.

Led by distinguished economists Alan Krueger and Robert Solow, a roster of twenty-six respected economic experts analyzes the micro- and macroeconomic factors that led to the unexpected coupling of low unemployment and low inflation. The more macroeconomically oriented chapters clearly point to a reduction in the inflation-safe rate of unemployment. Laurence Ball and Robert Moffitt see the slow adjustment of workers' wage aspirations in the wake of rising productivity as a key factor in keeping inflation at bay. And Alan Blinder and Janet Yellen credit sound monetary policy by the Federal Reserve Board with making the best of fortunate circumstances, such as lower energy costs, a strong dollar, and a booming stock market.

Other chapters in The Roaring Nineties examine how the interaction between macroeconomic and labor market conditions helped sustain high employment growth and low inflation. Giuseppe Bertola, Francine Blau, and Lawrence M. Kahn demonstrate how greater flexibility in the U.S. labor market generated more jobs in this country than in Europe, but at the expense of greater earnings inequality. David Ellwood examines the burgeoning shortage of skilled workers, and suggests policies—such as tax credits for businesses that provide on-the-job-training—to address the problem. And James Hines, Hilary Hoynes, and Alan Krueger elaborate the benefits of sustained low unemployment, including budget surpluses that can finance public infrastructure and social welfare benefits—a perspective often lost in the concern over higher inflation rates.

While none of these analyses promise that the good times of the 1990s will last forever, The Roaring Nineties provides a unique analysis of recent economic history, demonstrating how the nation capitalized on a lucky confluence of economic factors, helping to create the longest peacetime boom in American history.

ROBERT SOLOW is Institute Professor Emeritus, M.I.T., and a Nobel laureate in economics.

ALAN KRUEGER is professor of economics at Princeton University.

CONTRIBUTORS: Katharine G. Abraham, Laurence Ball, Giusepe Bertola, Rebecca M. Blank,  Francine D. Blau,  Alan S. Blinder,  Jessica Cohen,  William T. Dickens,  David T. Ellwood,  James R. Hines Jr., Hilary W. Hoynes,  George Johnson,  Lawrence M. Kahn,  Lisa M. Lynch, Robert Moffitt, Stephen J. Nickell,  Adam Posen,  Matthew D. Shapiro,  Robert Shimer,  Matthew J. Slaughter,  Douglas Staiger,  James H. Stock, Janet L. Yellen, Mark W. Watson.

Copublished with The Century Foundation

A Volume in the American Sociological Association’s Rose Series in Sociology

Declining participation in labor unions, the movement toward a service-based economy, and increased globalization have cast doubt on the extent to which welfare states can continue to stem inequality in market economies over the long-term. Does the new economy render existing models of social assistance obsolete? Do traditional welfare states hamper economic and employment growth, thereby worsening the plight of the poor? Lane Kenworthy offers a rigorous empirical analysis of these questions in Egalitarian Capitalism. The book examines sixteen industrialized countries in North America, Western Europe, and Scandinavia—each with different approaches to assisting the poor—to see how successful each has been in developing its economy and curbing inequality over the past twenty years.

Kenworthy finds that inequality grew in almost all of these countries, from the most progressive to the least. Using simple but powerful statistical tests, he assesses the theory that inequality is necessary to improve economic growth and reduce poverty. He finds no necessary trade-off between equality and economic growth but discovers some evidence that high minimum wages dampen employment growth in private sector services. Kenworthy suggests that without greater private sector employment, public supports may be unable to adequately sustain living standards for the poor. An equitable growth strategy necessitates a balance of policy options: Creating jobs is aided by loose employment regulation, low payroll taxes, and, in some cases, lower real wages for workers at the bottom of the income spectrum. However, high employment is also facilitated by a system that “makes work pay” with earnings subsidies, workplace flexibilities, financial support for those who are between jobs or unable to work, and universal health and child care coverage. Kenworthy suggests that these strategies, though generally presented as mutually exclusive, could be effectively combined to create a robust, fair economy.

Egalitarian Capitalism addresses fundamental questions of national policy with rigorous scholarship and a clarity that makes it accessible to any reader interested in the alleged trade-off between social equity and market efficiency. The book analyzes the viability of traditional welfare regimes and offers sustainable options that can promote egalitarian societies without hampering economic progress.

LANE KENWORTHY is assistant professor of sociology at Emory University.

Awarded Best Book in Urban Affairs Published in 1997 / 1998 by the Urban Affairs Association.

One of Choice magazine's Outstanding Academic Books of 1997

"[An] alarming report, a rigorous study packed with charts, tables, 1990 census data and [Jargowsky's] own extensive field work.... His careful analysis of enterprise zones, job-creation strategies, local economic development schemes and housing and tax policies rounds out an essential handbook for policy makers, a major contribution to public debate over ways to reverse indigence." —Publishers Weekly

"A data-rich description and a conceptually innovative explanation of the spread of neighborhood poverty in the United States between 1970 and 1990. Urban scholars and policymakers alike should find Jargowsky's compelling arguments thought-provoking."—Library Journal

"A powerful book that allows us to really understand how ghettos have been changing over time and the forces behind these changes. It should be required reading of anyone who cares about urban poverty." —David Ellwood, Malcolm Wiener Professor of Public Policy, John F. Kennedy School of Government, Harvard University

Poverty and Place documents the geographic spread of the nation's ghettos and shows how economic shifts have had a particularly devastating impact on certain regions, particularly in the rust-belt states of the Midwest. Author Paul Jargowsky's thoughtful analysis of the causes of ghetto formation clarifies the importance of widespread urban trends, particularly those changes in the labor and housing markets that have fostered income inequality and segregated the rich from the poor. Jargowsky also examines the sources of employment that do exist for ghetto dwellers, and describes how education and family structure further limit their prospects. Poverty and Place shows how the spread of high poverty neighborhoods has particularly trapped members of poor minorities, who account for nearly four out of five ghetto residents. Poverty and Place sets forth the facts necessary to inform the public understanding of the growth of concentrated poverty, and confronts essential questions about how the spiral of urban decay in our nation's cities can be reversed.

PAUL A. JARGOWSKY is associate professor of political economy in the School of Social Sciences at the University of Texas, Dallas.

From Welfare to Work appears at a critical moment, when all fifty states are wrestling with tough budgetary and program choices as they implement the new federal welfare reforms. This book is a definitive analysis of the landmark social research that has directly informed those choices: the rigorous evaluation of programs designed to help welfare recipients become employed and self-sufficient. It discusses forty-five past and current studies, focusing on the series of seminal evaluations conducted by the Manpower Demonstration Research Corporation over the last fifteen years.

Which of these welfare-to-work programs have worked? For whom and at what cost? In answering these key questions, the authors clearly delineate the trade-offs facing policymakers as they strive to achieve the multiple goals of alleviating poverty, helping the most disadvantaged, curtailing dependence, and effecting welfare savings. The authors present compelling evidence that the generally low-cost, primarily job search-oriented programs of the late 1980s achieved sustained earnings gains and welfare savings. However, getting people out of poverty and helping those who are most disadvantaged may require some intensive, higher-cost services such as education and training. The authors explore a range of studies now in progress that will address these and other urgent issues. They also point to encouraging results from programs that were operating in San Diego and Baltimore, which suggest the potential value of a mixed strategy: combining job search and other low-cost activities for a broad portion of the caseload with more specialized services for smaller groups.

Offering both an authoritative synthesis of work already done and recommendations for future innovation, From Welfare to Work will be the standard resource and required reading for practitioners and students in the social policy, social welfare, and academic communities.

JUDITH M. GUERON is president of the Manpower Demonstration Research Corporation (MDRC).

EDWARD S. PAULY is senior research associate and coordinator of education research for MDRC.

"Grubb's powerful vision of a workforce development system connected by vertical ladders for upward mobility adds an important new dimension to our continued efforts at system reform. The unfortunate reality is that neither our first-chance education system nor our second-chance job training system have succeeded in creating clear pathways out of poverty for many of our citizens. Grubb's message deserves a serious hearing by policy makers and practitioners alike." —Evelyn Ganzglass, National Governors' Association

Over the past three decades, job training programs have proliferated in response to mounting problems of unemployment, poverty, and expanding welfare rolls. These programs and the institutions that administer them have grown to a number and complexity that make it increasingly difficult for policymakers to interpret their effectiveness. Learning to Work offers a comprehensive assessment of efforts to move individuals into the workforce, and explains why their success has been limited.

Learning to Work offers a complete history of job training in the United States, beginning with the Department of Labor's manpower development programs in the1960s and detailing the expansion of services through the Comprehensive Employment and Training Act in the 1970s and the Job Training Partnership Act in the 1980s.Other programs have sprung from the welfare system or were designed to meet the needs of various state and corporate development initiatives. The result is a complex mosaic of welfare-to-work, second-chance training, and experimental programs, all with their own goals, methodology, institutional administration, and funding.

Learning to Work examines the findings of the most recent and sophisticated job training evaluations and what they reveal for each type of program. Which agendas prove most effective? Do their effects last over time? How well do programs benefit various populations, from welfare recipients to youths to displaced employees in need of retraining? The results are not encouraging. Many programs increase employment and reduce welfare dependence, but by meager increments, and the results are often temporary. On average most programs boosted earnings by only $200 to $500 per year, and even these small effects tended to decay after four or five years. Overall, job training programs moved very few individuals permanently off welfare, and provided no entry into a middle-class occupation or income.

Learning to Work provides possible explanations for these poor results, citing the limited scope of individual programs, their lack of linkages to other programs or job-related opportunities, the absence of academic content or solid instructional methods, and their vulnerability to local political interference. Author Norton Grubb traces the root of these problems to the inherent separation of job training programs from the more successful educational system. He proposes consolidating the two domains into a clearly defined hierarchy of programs that combine school- and work-based instruction and employ proven methods of student-centered, project-based teaching. By linking programs tailored to every level of need and replacing short-term job training with long-term education, a system could be created to enable individuals to achieve increasing levels of economic success.

The problems that job training programs address are too serious to ignore. Learning to Work tells us what's wrong with job training today, and offers a practical vision for reform.

W. NORTON GRUBB is professor of education at the University of California, Berkeley.