Last week Dr. Julia Heath and Chris Nicak from the UC Economics Center, Tobin Gardner and Meghan Cummings of The Women's Fund shared new research which dug into the policy challenges women and families face as they climb toward self-sufficiency.
This compelling research highlights the complexities of the journey out of poverty and the disincentives to work along the way.
Top Line Findings:
There are significant disincentives for economic or occupational advancement for wages below $20 an hour:
- A single mother with one preschool age child making $9 an hour has a greater number of gross resources (benefits + earned income) than if she were making $15 an hour. A trend which continues until she is making $20 an hour, at which point she becomes self-sufficient and is off benefits.
- Many low-wage workers are anxious about giving up benefits, which are a reliable resource, for the instability of earned income. Benefits can virtually guarantee that you have food on the table, but there is a substantial risk involved in giving up benefits for a job that may not be permanent.
- The UC Economics Center's research assumed that a person was receiving all benefits for which they are eligible. Not only is this unlikely, due to the complicated nature of applying for benefits, but in Hamilton County it is nearly impossible, as the waiting list for housing assistance has been closed since December of 2014.
We repeatedly saw in our qualitative research, conducted by Design Impact, that the journey to self-sufficiency is long, difficult and frustrating.
People feel like they are working harder and harder, but not getting ahead.
Other Links:
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We greatefully acknowledge the Murray and Agnes Seasongood Good
Government Foundation and the Charlotte R. Schmidlapp Fund, Fifth Third Bank Trustee
for their financial support of this research.
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We appreciate our long-time Women's Fund Season Sponsor,
Johnson Investment Counsel
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The Women's Fund of The Greater Cincinnati Foundation
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