Working poverty in Michigan, 1998/1999 and 2007/2008: Changes in the magnitudes and policy and socio-demographic determinants

Abstract

Michigan has undergone enormous labor market changes since the 1990s affecting employment, income, and poverty. This paper examines changes in poverty among working families and their policy-related and socio-demographic determinants between 1998/1999 and 2007/2008 in Michigan. Findings suggest the rates of ‘poverty’ and ‘near poverty’ to be between 5 and 19% among working families, with slightly higher rates for the latter period. Public transfers combining taxes and means-tested supports, albeit making some impact among poor families with children, were unable to lower these rates. While the major socio-demographic characteristics of poverty and near poverty including large families with children and young, never married, single mother, and immigrant householders apply to working families, the roles of gender, race, marital status, and education manifest through many policy-related variables such as work hours, wages, and transfer incomes. These findings have important implications for understanding working poverty in Michigan and beyond.