Think Globally, Act Locally
Welfare Reform:  Working Poverty

Readings:  Bernstein and Morris chpts. In Piven et al.

Both authors point out that welfare reform assumed (hoped for!)
Upward mobility – expected that once welfare mothers got into work world their wages would increase over time

i.e., implicit contract that welfare mothers would earn their way out of poverty

What do the authors find?
 
 
 

* most work in “business service” category – temping, short term business contracts (contracting out) for credit reporting, collection of claims, mailing, reproduction, stenography, photo-copying, data entry, janitorial services)

* in NC, nearly 18% of all jobs obtained by AFDC/TANF recipients were temp jobs

*Some increases in household income at first, but most at remain at poverty level (or a little above it although this margin wiped out by childcare costs)
 (see Table 7.1, p. 117; and Table 7.3, p. 123; Table 8.2. p.135; Table 8.7, p.139)

*Much of reduction in caseloads at first result of high demand for low wage work
 (i.e., not demand for well-paying low skilled work and demand NOT constant
e.g., recession of 2001 – overall unemployment rate increased by 1.5%
rate for African Americans increased 2.3%; Hispanics 2.2%))

* note also that some argued against raising minimum wage .90 in 1996-7 arguing that it would “price low-wage workers out of the market” – not supported by data
 

*Low levels of job mobility
 two segments – one with job mobility, benefits, flexible schedules
 one without
 (see Table )

*LOTS of cycling in and out of work

 Why???
 
 

***Flexible accumulation regimes
 
 

*psychological effects of working
 do welfare moms feel better now because they’re “earning” their poverty??

Recommendations of the authors??