Abstract

ABSTRACT This study uses Current Population Survey data and econometric techniques to examine whether working poor households improve their economic wellbeing by working more hours. For working households overall, full-time work puts them in a 49–78% better position than part-time work (as measured by resources-to-need and depending on methodology). For poor families, however, full-time work makes them 1.3–2.7% better off than part-time work. The latter finding reflects that the higher earnings of full-time work come at considerable cost: lower public assistance benefits and higher medical, work, and childcare expenditures. We discuss policies that may reduce these tradeoffs for poor working households.

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