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Working poor

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working poor
people who are economically disadvantaged despite the fact that they are fully employed. The working poor do not have sufficient income to improve their overall lifestyle.
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Opponents of the current minimum wage system suggest that current wages discourage the working poor from improving their skills or seeking higher paying jobs.

Aided by a strong economy and more generous assistance for the working poor in the form of an expanded Earned Income Tax Credit and other measures, welfare reform led to a sharp fall in caseloads in the late 1990s.

An NIT makes it possible to subsidize the working poor, without requiring that welfare recipients earn nothing or reducing payments by one dollar for every dollar earned.

But consider the poor and the lower middle class. Generally the poor including the working poor are forced to spend less on various goods and services than the middle class and the rich. However, in some cases it costs the poor more instead of less! ...

However, it may also discourage recipients from working to increase their INCOME (see POVERTY TRAP), which is why some countries have introduced a form of negative income tax that is available only to the working poor.

See also: Poverty, Administration, Welfare, Population, Labour

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