front cover of Welfare in America
Welfare in America
How Social Science Fails the Poor
William M. Epstein
University of Wisconsin Press, 1997

William M. Epstein charges that most current social welfare programs are not held to credible standards in their design or their results. Rather than spending less on such research and programs, however, Epstein suggests we should spend much more, and do the job right.
     The American public and policymakers need to rely on social science research for objective, credible information when trying to solve problems of employment, affordable housing, effective health care, and family integrity. But, Epstein contends, politicians treat welfare issues as ideological battlegrounds; they demand immediate results from questionable data and implement policies long before social researchers can complete their analyses. Social scientists often play into the political agenda, supporting poorly conceived programs and doing little to test and revise them. Analyzing Aid to Families with Dependent Children (AFDC) and the recent welfare reform act, Food Stamps, Medicaid, job training, social services, and other programs, Epstein systematically challenges the conservative’s vain hope that neglect is therapeutic for the poor, as well as the liberal’s conceit that a little bit of assistance is sufficient.

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What Money Can’t Buy
Family Income and Children’s Life Chances
Susan E. Mayer
Harvard University Press, 1997

Children from poor families generally do a lot worse than children from affluent families. They are more likely to develop behavior problems, to score lower on standardized tests, and to become adults in need of public assistance.

Susan Mayer asks whether income directly affects children's life chances, as many experts believe, or if the factors that cause parents to have low incomes also impede their children's life chances. She explores the question of causation with remarkable ingenuity. First, she compares the value of income from different sources to determine, for instance, if a dollar from welfare is as valuable as a dollar from wages. She then investigates whether parents' income after an event, such as teenage childbearing, can predict that event. If it can, this suggests that income is a proxy for unmeasured characteristics that affect both income and the event. Next she compares children living in states that pay high welfare benefits with children living in states with low benefits. Finally, she examines whether national income trends have the expected impact on children. Regardless of the research technique, the author finds that the effect of income on children's outcomes is smaller than many experts have thought.

Mayer then shows that the things families purchase as their income increases, such as cars and restaurant meals, seldom help children succeed. On the other hand, many of the things that do benefit children, such as books and educational outings, cost so little that their consumption depends on taste rather than income. Money alone, Mayer concludes, does not buy either the material or the psychological well-being that children require to succeed.

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front cover of Working and Poor
Working and Poor
How Economic and Policy Changes Are Affecting Low-Wage Workers
Rebecca M. Blank
Russell Sage Foundation, 2006
Over the last three decades, large-scale economic developments, such as technological change, the decline in unionization, and changing skill requirements, have exacted their biggest toll on low-wage workers. These workers often possess few marketable skills and few resources with which to support themselves during periods of economic transition. In Working and Poor, a distinguished group of economists and policy experts, headlined by editors Rebecca Blank, Sheldon Danziger, and Robert Schoeni, examine how economic and policy changes over the last twenty-five years have affected the well-being of low-wage workers and their families. Working and Poor examines every facet of the economic well-being of less-skilled workers, from employment and earnings opportunities to consumption behavior and social assistance policies. Rebecca Blank and Heidi Schierholz document the different trends in work and wages among less-skilled women and men. Between 1979 and 2003, labor force participation rose rapidly for these women, along with more modest increases in wages, while among the men both employment and wages fell. David Card and John DiNardo review the evidence on how technological changes have affected less-skilled workers and conclude that the effect has been smaller than many observers claim. Philip Levine examines the effectiveness of the Unemployment Insurance program during recessions. He finds that the program's eligibility rules, which deny benefits to workers who have not met minimum earnings requirements, exclude the very people who require help most and should be adjusted to provide for those with the highest need.  On the other hand, Therese J. McGuire and David F. Merriman show that government help remains a valuable source of support during economic downturns.  They find that during the most recent recession in 2001, when state budgets were stretched thin, legislatures resisted political pressure to cut spending for the poor. Working and Poor provides a valuable analysis of the role that public policy changes can play in improving the plight of the working poor. A comprehensive analysis of trends over the last twenty-five years, this book provides an invaluable reference for the public discussion of work and poverty in America. A Volume in the National Poverty Center Series on Poverty and Public Policy
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