Thursday, September 10, 2009

New Census Data

Income down, official poverty at highest level since 1997, child poverty up to 19 percent, and women still earn 3/4 of what men do for the same work. Monea and Sawhill, at Brookings, have more:

Using data from the Congressional Budget Office (CBO) and others about the likely trajectory of the recession, we find that, absent other changes, the poverty rate will increase rapidly through 2011 or 2012, at which point about 14.4 percent of the country will be in poverty, up from 12.5 percent in 2007. As the recession ends and employment levels increase, the poverty rate will begin to steadily decrease though it will not, at least over the next decade or so, reach its 2007 level. In short, our results show that recessions can have long-term scarring effects for all workers but especially for the most disadvantaged, whose skills and attachment to the work force are already somewhat marginal. A prolonged lack of jobs reduces the amount of on-the-job training or experience that people receive, discourages them from making the effort needed to climb out of poverty, and can even lead to a deterioration in their health or family life that adversely affects opportunity.

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