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Progress for the Poor$
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Lane Kenworthy

Print publication date: 2011

Print ISBN-13: 9780199591527

Published to Oxford Scholarship Online: January 2012

DOI: 10.1093/acprof:oso/9780199591527.001.0001

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Low Wages Need Not Mean Low Incomes

Low Wages Need Not Mean Low Incomes

Chapter:
(p.39) 5 Low Wages Need Not Mean Low Incomes
Source:
Progress for the Poor
Author(s):

Lane Kenworthy

Jessica Epstein

Daniel Duerr

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199591527.003.0005

Low-wage jobs are a prominent feature of the U.S. economy. To the surprise of many observers, the same can now be said of Germany. Changes in economic pressures, institutions, and policies make it likely that other countries will follow Germany’s lead. But citizens and policy makers should worry far less about low wages for individuals than about low incomes for households. Policy—in particular, an employment-conditional earnings subsidy—can help to ensure that low wages do not result in low incomes.

Keywords:   low wages, in-work poverty, poverty, employment-conditional earnings subsidy, Earned Income Tax Credit, Working Tax Credit

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