Families’ Job Characteristics and Economic Self-Sufficiency: Differences by Income, Race-Ethnicity, and Nativity

Abstract

Policy debates about whether wages and benefits from work provide enough resources to achieve economic self-sufficiency rely on data for workers, not working families. Using data from the Current Population Survey, we find that almost two-thirds of families working full time earn enough to cover a basic family budget, but that less than a quarter of low-income families do. A typical low-income full-time working family with wages below a family budget would need to earn about $11.00 more per hour to cover expenses. This wage gap is larger for black, Hispanic, and immigrant families. Receipt of employer-provided benefits varies—health insurance is more prevalent than pension plans—and both are less available to low-income families, and black, Hispanic, and immigrant working families. Findings suggest that without policies to decrease wage inequality and increase parents’ access to jobs with higher wages and benefits, child opportunity gaps by income, race-ethnicity, and nativity will likely persist.