8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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1 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Moving Americarsquos Families
Forward Lessons Learned fromOther Countries
Testimony before the US House of Representatives
Committee on Ways and Means Subcommittee on
Human Resources
Melissa Boteach
Vice President Poverty to Prosperity Program
Center for American ProgressNovember 17 2015
Tank you Chairman Bousany Ranking Member Dogget and members o he sub-
commitee or he inviaion o appear beore you oday My name is Melissa Boeach
and I am he Vice Presiden o he Povery o Prosperiy Program a he Cener or
American Progress
I am excied o join you oday o alk abou lessons he Unied Saes can ake rom
oher counries in erms o cuting povery and promoing shared prosperiy Tereare a number o innovaions across Organisaion or Economic Co-operaion and
Developmen or OECD counries rom which he Unied Saes can learn In odayrsquos
esimony I will underscore wo main poins
bull Firs one o he mos imporan lessons he Unied Saes can ake rom oher advanced
economies is ha policies ha improve basic labor sandards increase womenrsquos labor
orce paricipaion hrough sronger work-amily policies and srenghen social insur-
ance have been criical or cuting povery miigaing inequaliy and ensuring people
can find and keep good jobs I will provide specific examples o how oher counries are
using hese policies o promoe greaer economic securiy and opporuniy
bull Second effors o examine individual reorms in oher counries canno be divorced
rom his broader policy ramework I is imporan no o cherry-pick lessons rom
oher counries absen he conex o heir sronger labor marke proecions work-
amily policies and more adequae income securiy programs or amilies who
sruggle o make ends mee Tis lesson has imporan implicaions as Congress seeks
o reorm work and income suppors in he Unied Saes
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2 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Background
As Irsquom sure we can all agree he sures pahway ou o povery is a well-paying job
Unorunaely even as he employmen numbers have improved in he pas year he
povery rae has declined only slowly because many Americans remain suck wih fla
or declining wages reduced hours and inadequae labor proecions Tis is no a new
rend Excep or a brie period in he lae 1990s over he pas our decades he gainsrom rising profis and produciviy have gone mainly o hose a he op o income
ladder while average Americans have seen heir wages remain fla or even decline in real
erms In ac he real hourly wage o a worker a he 10h percenile o he wage disri-
buion in 2013 was 53 percen less han in 1979 By conras he real hourly wage o a
worker a he 95h percenile grew by 406 percen over he same period1
Womenrsquos labor orce paricipaion is an imporan ool o miigae hese rends and
make all amilies beter off Nearly all o he rise in US amily income beween 1970 and
2013 was due o womenrsquos increased earnings and according o he Council o Economic
Advisers i womenrsquos labor orce paricipaion had no increased since 1970 ldquomedianamily income would be abou $13000 less han wha i is odayrdquo2 Ye he Unied Saes
is woeully behind is inernaional counerpars in offering workplace policies ha
suppor womenrsquos labor orce paricipaion and a persisen gender wage gap means ha
women sill earn on average only abou 79 percen o wha he average man makes
wih significanly larger dispariies or women o color3 Closing his gender wage gap
would cu he povery rae or working women and heir amilies in hal4 wih ewer
amilies needing o urn o he saey ne in he firs place
Finally even in good economic imes evens such as a los job or cubacks in hours
divorce disabiliy birh o a child new caregiving responsibiliies and oher lieevens are common riggers o a spell o povery or hardship 5 underscoring ha social
insurance and assisance programs offer imporan proecions rom hardship ha we
all need In ac hal o all Americans will experience a leas one year o povery or
near-povery a some poin during heir working years Adding in hose who experi-
ence unemploymen or need o urn o he saey ne or a year or more ha figure
rises o our in five Americans6
Tese experiences are no unique o he Unied Saes Across OECD naions rising
inequaliy presens a challenge hough i is more acue in he Unied Saes han in mos
oher naions7 Across OECD naions people have o balance breadwinning and care-
giving responsibiliies and ace income shocks such as job loss or onse o a disabiliy
Ye he Unied Saes consisenly ranks near he botom when compared wih oher
advanced naions on comparable measures o povery and child povery8 Moreover
despie rheorical nods o he American Dream a US child born in he botom income
quinile o he income disribuion has a lower probabiliy o making i o he op
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3 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
income quinile han his or her counerpars in Denmark and Canada9 Te remainder
o my esimony will explore policy differences ha help explain hese gaps and wha he
Unied Saes can learn rom oher naions in his regard
What do other countries do to cut poverty and strengthen the
middle class
A key difference beween he Unied Saes and oher advanced naions is ha oher
counriesrsquo policies commi o supporing people in work hrough sronger labor san-
dards aciliaing womenrsquos labor orce paricipaion hrough policies such as paid amily
leave and providing greaer economic securiy hrough a more adequae social insur-
ance sysem when work is unavailable impossible or pays oo litle o make ends mee
Basic labor standards
Firs oher advanced naions end o have sronger basic labor proecions or work-
ers In he Unied Saes oday more han one in hree people sruggle o make ends
mee living below wice he ederal povery line10 Tis is due in par o he ac ha he
Unied Saes oleraes lower levels o basic labor sandards and worker righs han mos
oher rich naions Our minimum wage is a povery wage leaving a paren o wo chil-
dren who works ull ime in povery Low-wage workers are ofen subjeced o schedul-
ing pracices ha leave hem no flexibiliy or cerainy abou heir hours And only abou
7 percen o privae-secor workers belong o a union11 Tese rends have implicaions
or usage o our saey ne and amiliesrsquo long-erm economic mobiliy
For example ldquoNearly hree-quarers (73 percen) o enrollmens in Americarsquos major
public benefis programs are rom working amiliesrdquo12 In he as ood indusry alone
more han hal o ron line workers are unable o suppor heir amilies wihou nuri-
ion or oher assisance and he cos o public assisance or hese working amilies
is nearly $7 billion per year13 In conras raising he minimum wage o $12 per hour
by 2020 as proposed in Rep Bobby Scot (D-VA) and Sen Paty Murrayrsquos (D-WA)
Raise he Wage Ac would save nearly $53 billion in expendiures on he Supplemenal
Nuriion Assisance Program or SNAP over he nex 10 years14
In erms o scheduling pracices approximaely hal o low-wage workers repor having
minimal conrol over he iming o heir work hours15 In ac in a sudy o low-skill
nonproducion jobs o 17 corporaions in he hospialiy reail ransporaion and
financial services indusries only hree o he companies provided worker schedules
more han one week in advance16 When workers donrsquo know when or or how long hey
are working on a regular basis i can wreak havoc on heir abiliy o budge ake on a
second job o help pay he bills make child care and ransporaion arrangemens or
move up he economic ladder by enrolling in educaion or raining
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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4 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Finally he barriers o joining a union in he Unied Saes limi workersrsquo abiliy o bar-
gain collecively or beter wages and healh benefis which pus addiional pressure on
Medicaid and oher saey ne programs ha help low-wage workers make ends mee
Moreover union membership has long-erm posiive consequences or children and
amilies Recenly published research finds ha ldquoconrolling or many acors union
membership is posiively and significanly associaed wih marriagerdquo991252a relaionship
ha is ldquolargely explained by he increased income regulariy and sabiliy o employ-men and ringe benefis ha come wih union membershiprdquo17 And areas wih higher
union membership demonsrae more mobiliy or low-income children Conrolling
or many acors he relaionship beween union densiy and he mobiliy o low-
income children is a leas as srong as he relaionship beween mobiliy and high
school dropou raes991252a variable ha is widely recognized as an imporan acor in a
childrsquos long-erm prospecs18
Looking across he pond in counries such as Denmark collecive agreemens beween
rade unions and employer organizaions are he norm no he excepion19 In he
Unied Kingdom he naional minimum wage updaed annually is jus more han $10per hour and he curren conservaive governmen is moving o increase i wih he
goal o reaching 60 percen o median earnings by 202020 In addiion o a much higher
minimum wage UK workers also have a guaranee o 28 days o paid ime off each year
and have sronger job securiy proecions21
In erms o addressing scheduling sandards workers in he Unied Kingdom enjoy a
ldquorigh o requesrdquo flexible and predicable schedules and in urn employers have an
obligaion o respond in a ldquoreasonable mannerrdquo including evaluaing he pros and cons
o he applicaion discussing he reques wih he employee and providing an appeal
process22
Te law is showing resuls Surveys have ound ha he number o requessreused by employers dropped afer passage o he legislaion and hree years afer
he law was enaced a survey in 2006 showed ha here was increased availabiliy o
flexible working arrangemens and a 7 percenage poin increase in workplaces offer-
ing a leas one o six flexible working arrangemens o heir employees23 Already his
idea is gaining momenum saeside wih Vermon and San Francisco adoping righ
o reques laws and he Schedules Ta Work Ac was inroduced in he House and
Senae o address hese issues
Work-family policies
A second area where he Unied Saes could learn rom is neighbors is in he area
o work-amily balance and encouraging womenrsquos labor orce paricipaion Beween
1990 and 2010 US emale labor orce paricipaion ell rom 6h o 17h among 22
OECD counries24 Research by Francine Blau and Lawrence Kahn has ound ha 28
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5 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
percen o 29 percen o his decrease could be explained by oher counriesrsquo expan-
sion o amily-riendly policies including parenal leave and par-ime work enile-
mens25 whereas he Unied Saes guaranees no paid sick days and sands alone in
ailing o offer any orm o paid amily leave26
In conras he Unied Kingdom gives almos all workers a legal enilemen o paid sick
days provides paid amily leave and has a comparaively expansive sysem o pre-K andchild care assisance27 Denmark offers 12 monhs o paid amily leave28 And in Canada
parenal leave consiues up o 15 weeks o maerniy benefis plus an addiional 35
weeks or parenal care by eiher paren afer he birh or adopion o a child29
In he Unied Saes our lack o paid amily leave has implicaions or usage o he saey
ne In New Jersey or example where here is a sae paid amily leave program in place
a recen sudy conduced by Rugers Universiy ound ha women who use paid leave
are significanly more likely o be working 9 o 12 monhs afer a childrsquos birh han hose
who do no ake any leave30 Moreover women in New Jersey aking paid leave repored
wage increases rom prebirh o posbirh and were 39 percen less likely o receivepublic assisance and 40 percen less likely o receive assisance rom he Supplemenal
Nuriion Assisance Program ormerly known as ood samps in he year afer he
childrsquos birh compared wih women who did no ake leave31
More adequate social insurance
Finally oher OECD counries end o have significanly more adequae social insur-
ance regimes ha he Unied Saes or he messy ups and down o lie such as a healh
crisis unemploymen birh o a child or onse o a disabiliy I will briefly reviewseveral examples below
Health insurance
Nearly all advanced naions offer universal healh care coverage32 In conras in he
Unied Saes 19 saes have reused o implemen he Affordable Care Acrsquos Medicaid
expansion leaving millions o low-income aduls wihou access o care and unable o
purchase insurance on he healh care exchanges33
Child benefits
Anoher common hread across many rich naions is a child benefi ha significanly
reduces child povery34 For example he new governmen is Canada is slaed o signifi-
canly expand is child benefi or low- and moderae-income amilies and he Unied
Kingdom provides a amily allowance35 o all low- and middle-income amilies wih
children hrough is Child Benefi36 and Child ax Credi37
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1214
12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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2 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Background
As Irsquom sure we can all agree he sures pahway ou o povery is a well-paying job
Unorunaely even as he employmen numbers have improved in he pas year he
povery rae has declined only slowly because many Americans remain suck wih fla
or declining wages reduced hours and inadequae labor proecions Tis is no a new
rend Excep or a brie period in he lae 1990s over he pas our decades he gainsrom rising profis and produciviy have gone mainly o hose a he op o income
ladder while average Americans have seen heir wages remain fla or even decline in real
erms In ac he real hourly wage o a worker a he 10h percenile o he wage disri-
buion in 2013 was 53 percen less han in 1979 By conras he real hourly wage o a
worker a he 95h percenile grew by 406 percen over he same period1
Womenrsquos labor orce paricipaion is an imporan ool o miigae hese rends and
make all amilies beter off Nearly all o he rise in US amily income beween 1970 and
2013 was due o womenrsquos increased earnings and according o he Council o Economic
Advisers i womenrsquos labor orce paricipaion had no increased since 1970 ldquomedianamily income would be abou $13000 less han wha i is odayrdquo2 Ye he Unied Saes
is woeully behind is inernaional counerpars in offering workplace policies ha
suppor womenrsquos labor orce paricipaion and a persisen gender wage gap means ha
women sill earn on average only abou 79 percen o wha he average man makes
wih significanly larger dispariies or women o color3 Closing his gender wage gap
would cu he povery rae or working women and heir amilies in hal4 wih ewer
amilies needing o urn o he saey ne in he firs place
Finally even in good economic imes evens such as a los job or cubacks in hours
divorce disabiliy birh o a child new caregiving responsibiliies and oher lieevens are common riggers o a spell o povery or hardship 5 underscoring ha social
insurance and assisance programs offer imporan proecions rom hardship ha we
all need In ac hal o all Americans will experience a leas one year o povery or
near-povery a some poin during heir working years Adding in hose who experi-
ence unemploymen or need o urn o he saey ne or a year or more ha figure
rises o our in five Americans6
Tese experiences are no unique o he Unied Saes Across OECD naions rising
inequaliy presens a challenge hough i is more acue in he Unied Saes han in mos
oher naions7 Across OECD naions people have o balance breadwinning and care-
giving responsibiliies and ace income shocks such as job loss or onse o a disabiliy
Ye he Unied Saes consisenly ranks near he botom when compared wih oher
advanced naions on comparable measures o povery and child povery8 Moreover
despie rheorical nods o he American Dream a US child born in he botom income
quinile o he income disribuion has a lower probabiliy o making i o he op
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 314
3 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
income quinile han his or her counerpars in Denmark and Canada9 Te remainder
o my esimony will explore policy differences ha help explain hese gaps and wha he
Unied Saes can learn rom oher naions in his regard
What do other countries do to cut poverty and strengthen the
middle class
A key difference beween he Unied Saes and oher advanced naions is ha oher
counriesrsquo policies commi o supporing people in work hrough sronger labor san-
dards aciliaing womenrsquos labor orce paricipaion hrough policies such as paid amily
leave and providing greaer economic securiy hrough a more adequae social insur-
ance sysem when work is unavailable impossible or pays oo litle o make ends mee
Basic labor standards
Firs oher advanced naions end o have sronger basic labor proecions or work-
ers In he Unied Saes oday more han one in hree people sruggle o make ends
mee living below wice he ederal povery line10 Tis is due in par o he ac ha he
Unied Saes oleraes lower levels o basic labor sandards and worker righs han mos
oher rich naions Our minimum wage is a povery wage leaving a paren o wo chil-
dren who works ull ime in povery Low-wage workers are ofen subjeced o schedul-
ing pracices ha leave hem no flexibiliy or cerainy abou heir hours And only abou
7 percen o privae-secor workers belong o a union11 Tese rends have implicaions
or usage o our saey ne and amiliesrsquo long-erm economic mobiliy
For example ldquoNearly hree-quarers (73 percen) o enrollmens in Americarsquos major
public benefis programs are rom working amiliesrdquo12 In he as ood indusry alone
more han hal o ron line workers are unable o suppor heir amilies wihou nuri-
ion or oher assisance and he cos o public assisance or hese working amilies
is nearly $7 billion per year13 In conras raising he minimum wage o $12 per hour
by 2020 as proposed in Rep Bobby Scot (D-VA) and Sen Paty Murrayrsquos (D-WA)
Raise he Wage Ac would save nearly $53 billion in expendiures on he Supplemenal
Nuriion Assisance Program or SNAP over he nex 10 years14
In erms o scheduling pracices approximaely hal o low-wage workers repor having
minimal conrol over he iming o heir work hours15 In ac in a sudy o low-skill
nonproducion jobs o 17 corporaions in he hospialiy reail ransporaion and
financial services indusries only hree o he companies provided worker schedules
more han one week in advance16 When workers donrsquo know when or or how long hey
are working on a regular basis i can wreak havoc on heir abiliy o budge ake on a
second job o help pay he bills make child care and ransporaion arrangemens or
move up he economic ladder by enrolling in educaion or raining
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 414
4 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Finally he barriers o joining a union in he Unied Saes limi workersrsquo abiliy o bar-
gain collecively or beter wages and healh benefis which pus addiional pressure on
Medicaid and oher saey ne programs ha help low-wage workers make ends mee
Moreover union membership has long-erm posiive consequences or children and
amilies Recenly published research finds ha ldquoconrolling or many acors union
membership is posiively and significanly associaed wih marriagerdquo991252a relaionship
ha is ldquolargely explained by he increased income regulariy and sabiliy o employ-men and ringe benefis ha come wih union membershiprdquo17 And areas wih higher
union membership demonsrae more mobiliy or low-income children Conrolling
or many acors he relaionship beween union densiy and he mobiliy o low-
income children is a leas as srong as he relaionship beween mobiliy and high
school dropou raes991252a variable ha is widely recognized as an imporan acor in a
childrsquos long-erm prospecs18
Looking across he pond in counries such as Denmark collecive agreemens beween
rade unions and employer organizaions are he norm no he excepion19 In he
Unied Kingdom he naional minimum wage updaed annually is jus more han $10per hour and he curren conservaive governmen is moving o increase i wih he
goal o reaching 60 percen o median earnings by 202020 In addiion o a much higher
minimum wage UK workers also have a guaranee o 28 days o paid ime off each year
and have sronger job securiy proecions21
In erms o addressing scheduling sandards workers in he Unied Kingdom enjoy a
ldquorigh o requesrdquo flexible and predicable schedules and in urn employers have an
obligaion o respond in a ldquoreasonable mannerrdquo including evaluaing he pros and cons
o he applicaion discussing he reques wih he employee and providing an appeal
process22
Te law is showing resuls Surveys have ound ha he number o requessreused by employers dropped afer passage o he legislaion and hree years afer
he law was enaced a survey in 2006 showed ha here was increased availabiliy o
flexible working arrangemens and a 7 percenage poin increase in workplaces offer-
ing a leas one o six flexible working arrangemens o heir employees23 Already his
idea is gaining momenum saeside wih Vermon and San Francisco adoping righ
o reques laws and he Schedules Ta Work Ac was inroduced in he House and
Senae o address hese issues
Work-family policies
A second area where he Unied Saes could learn rom is neighbors is in he area
o work-amily balance and encouraging womenrsquos labor orce paricipaion Beween
1990 and 2010 US emale labor orce paricipaion ell rom 6h o 17h among 22
OECD counries24 Research by Francine Blau and Lawrence Kahn has ound ha 28
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5 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
percen o 29 percen o his decrease could be explained by oher counriesrsquo expan-
sion o amily-riendly policies including parenal leave and par-ime work enile-
mens25 whereas he Unied Saes guaranees no paid sick days and sands alone in
ailing o offer any orm o paid amily leave26
In conras he Unied Kingdom gives almos all workers a legal enilemen o paid sick
days provides paid amily leave and has a comparaively expansive sysem o pre-K andchild care assisance27 Denmark offers 12 monhs o paid amily leave28 And in Canada
parenal leave consiues up o 15 weeks o maerniy benefis plus an addiional 35
weeks or parenal care by eiher paren afer he birh or adopion o a child29
In he Unied Saes our lack o paid amily leave has implicaions or usage o he saey
ne In New Jersey or example where here is a sae paid amily leave program in place
a recen sudy conduced by Rugers Universiy ound ha women who use paid leave
are significanly more likely o be working 9 o 12 monhs afer a childrsquos birh han hose
who do no ake any leave30 Moreover women in New Jersey aking paid leave repored
wage increases rom prebirh o posbirh and were 39 percen less likely o receivepublic assisance and 40 percen less likely o receive assisance rom he Supplemenal
Nuriion Assisance Program ormerly known as ood samps in he year afer he
childrsquos birh compared wih women who did no ake leave31
More adequate social insurance
Finally oher OECD counries end o have significanly more adequae social insur-
ance regimes ha he Unied Saes or he messy ups and down o lie such as a healh
crisis unemploymen birh o a child or onse o a disabiliy I will briefly reviewseveral examples below
Health insurance
Nearly all advanced naions offer universal healh care coverage32 In conras in he
Unied Saes 19 saes have reused o implemen he Affordable Care Acrsquos Medicaid
expansion leaving millions o low-income aduls wihou access o care and unable o
purchase insurance on he healh care exchanges33
Child benefits
Anoher common hread across many rich naions is a child benefi ha significanly
reduces child povery34 For example he new governmen is Canada is slaed o signifi-
canly expand is child benefi or low- and moderae-income amilies and he Unied
Kingdom provides a amily allowance35 o all low- and middle-income amilies wih
children hrough is Child Benefi36 and Child ax Credi37
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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3 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
income quinile han his or her counerpars in Denmark and Canada9 Te remainder
o my esimony will explore policy differences ha help explain hese gaps and wha he
Unied Saes can learn rom oher naions in his regard
What do other countries do to cut poverty and strengthen the
middle class
A key difference beween he Unied Saes and oher advanced naions is ha oher
counriesrsquo policies commi o supporing people in work hrough sronger labor san-
dards aciliaing womenrsquos labor orce paricipaion hrough policies such as paid amily
leave and providing greaer economic securiy hrough a more adequae social insur-
ance sysem when work is unavailable impossible or pays oo litle o make ends mee
Basic labor standards
Firs oher advanced naions end o have sronger basic labor proecions or work-
ers In he Unied Saes oday more han one in hree people sruggle o make ends
mee living below wice he ederal povery line10 Tis is due in par o he ac ha he
Unied Saes oleraes lower levels o basic labor sandards and worker righs han mos
oher rich naions Our minimum wage is a povery wage leaving a paren o wo chil-
dren who works ull ime in povery Low-wage workers are ofen subjeced o schedul-
ing pracices ha leave hem no flexibiliy or cerainy abou heir hours And only abou
7 percen o privae-secor workers belong o a union11 Tese rends have implicaions
or usage o our saey ne and amiliesrsquo long-erm economic mobiliy
For example ldquoNearly hree-quarers (73 percen) o enrollmens in Americarsquos major
public benefis programs are rom working amiliesrdquo12 In he as ood indusry alone
more han hal o ron line workers are unable o suppor heir amilies wihou nuri-
ion or oher assisance and he cos o public assisance or hese working amilies
is nearly $7 billion per year13 In conras raising he minimum wage o $12 per hour
by 2020 as proposed in Rep Bobby Scot (D-VA) and Sen Paty Murrayrsquos (D-WA)
Raise he Wage Ac would save nearly $53 billion in expendiures on he Supplemenal
Nuriion Assisance Program or SNAP over he nex 10 years14
In erms o scheduling pracices approximaely hal o low-wage workers repor having
minimal conrol over he iming o heir work hours15 In ac in a sudy o low-skill
nonproducion jobs o 17 corporaions in he hospialiy reail ransporaion and
financial services indusries only hree o he companies provided worker schedules
more han one week in advance16 When workers donrsquo know when or or how long hey
are working on a regular basis i can wreak havoc on heir abiliy o budge ake on a
second job o help pay he bills make child care and ransporaion arrangemens or
move up he economic ladder by enrolling in educaion or raining
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4 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Finally he barriers o joining a union in he Unied Saes limi workersrsquo abiliy o bar-
gain collecively or beter wages and healh benefis which pus addiional pressure on
Medicaid and oher saey ne programs ha help low-wage workers make ends mee
Moreover union membership has long-erm posiive consequences or children and
amilies Recenly published research finds ha ldquoconrolling or many acors union
membership is posiively and significanly associaed wih marriagerdquo991252a relaionship
ha is ldquolargely explained by he increased income regulariy and sabiliy o employ-men and ringe benefis ha come wih union membershiprdquo17 And areas wih higher
union membership demonsrae more mobiliy or low-income children Conrolling
or many acors he relaionship beween union densiy and he mobiliy o low-
income children is a leas as srong as he relaionship beween mobiliy and high
school dropou raes991252a variable ha is widely recognized as an imporan acor in a
childrsquos long-erm prospecs18
Looking across he pond in counries such as Denmark collecive agreemens beween
rade unions and employer organizaions are he norm no he excepion19 In he
Unied Kingdom he naional minimum wage updaed annually is jus more han $10per hour and he curren conservaive governmen is moving o increase i wih he
goal o reaching 60 percen o median earnings by 202020 In addiion o a much higher
minimum wage UK workers also have a guaranee o 28 days o paid ime off each year
and have sronger job securiy proecions21
In erms o addressing scheduling sandards workers in he Unied Kingdom enjoy a
ldquorigh o requesrdquo flexible and predicable schedules and in urn employers have an
obligaion o respond in a ldquoreasonable mannerrdquo including evaluaing he pros and cons
o he applicaion discussing he reques wih he employee and providing an appeal
process22
Te law is showing resuls Surveys have ound ha he number o requessreused by employers dropped afer passage o he legislaion and hree years afer
he law was enaced a survey in 2006 showed ha here was increased availabiliy o
flexible working arrangemens and a 7 percenage poin increase in workplaces offer-
ing a leas one o six flexible working arrangemens o heir employees23 Already his
idea is gaining momenum saeside wih Vermon and San Francisco adoping righ
o reques laws and he Schedules Ta Work Ac was inroduced in he House and
Senae o address hese issues
Work-family policies
A second area where he Unied Saes could learn rom is neighbors is in he area
o work-amily balance and encouraging womenrsquos labor orce paricipaion Beween
1990 and 2010 US emale labor orce paricipaion ell rom 6h o 17h among 22
OECD counries24 Research by Francine Blau and Lawrence Kahn has ound ha 28
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5 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
percen o 29 percen o his decrease could be explained by oher counriesrsquo expan-
sion o amily-riendly policies including parenal leave and par-ime work enile-
mens25 whereas he Unied Saes guaranees no paid sick days and sands alone in
ailing o offer any orm o paid amily leave26
In conras he Unied Kingdom gives almos all workers a legal enilemen o paid sick
days provides paid amily leave and has a comparaively expansive sysem o pre-K andchild care assisance27 Denmark offers 12 monhs o paid amily leave28 And in Canada
parenal leave consiues up o 15 weeks o maerniy benefis plus an addiional 35
weeks or parenal care by eiher paren afer he birh or adopion o a child29
In he Unied Saes our lack o paid amily leave has implicaions or usage o he saey
ne In New Jersey or example where here is a sae paid amily leave program in place
a recen sudy conduced by Rugers Universiy ound ha women who use paid leave
are significanly more likely o be working 9 o 12 monhs afer a childrsquos birh han hose
who do no ake any leave30 Moreover women in New Jersey aking paid leave repored
wage increases rom prebirh o posbirh and were 39 percen less likely o receivepublic assisance and 40 percen less likely o receive assisance rom he Supplemenal
Nuriion Assisance Program ormerly known as ood samps in he year afer he
childrsquos birh compared wih women who did no ake leave31
More adequate social insurance
Finally oher OECD counries end o have significanly more adequae social insur-
ance regimes ha he Unied Saes or he messy ups and down o lie such as a healh
crisis unemploymen birh o a child or onse o a disabiliy I will briefly reviewseveral examples below
Health insurance
Nearly all advanced naions offer universal healh care coverage32 In conras in he
Unied Saes 19 saes have reused o implemen he Affordable Care Acrsquos Medicaid
expansion leaving millions o low-income aduls wihou access o care and unable o
purchase insurance on he healh care exchanges33
Child benefits
Anoher common hread across many rich naions is a child benefi ha significanly
reduces child povery34 For example he new governmen is Canada is slaed o signifi-
canly expand is child benefi or low- and moderae-income amilies and he Unied
Kingdom provides a amily allowance35 o all low- and middle-income amilies wih
children hrough is Child Benefi36 and Child ax Credi37
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1014
10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 414
4 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Finally he barriers o joining a union in he Unied Saes limi workersrsquo abiliy o bar-
gain collecively or beter wages and healh benefis which pus addiional pressure on
Medicaid and oher saey ne programs ha help low-wage workers make ends mee
Moreover union membership has long-erm posiive consequences or children and
amilies Recenly published research finds ha ldquoconrolling or many acors union
membership is posiively and significanly associaed wih marriagerdquo991252a relaionship
ha is ldquolargely explained by he increased income regulariy and sabiliy o employ-men and ringe benefis ha come wih union membershiprdquo17 And areas wih higher
union membership demonsrae more mobiliy or low-income children Conrolling
or many acors he relaionship beween union densiy and he mobiliy o low-
income children is a leas as srong as he relaionship beween mobiliy and high
school dropou raes991252a variable ha is widely recognized as an imporan acor in a
childrsquos long-erm prospecs18
Looking across he pond in counries such as Denmark collecive agreemens beween
rade unions and employer organizaions are he norm no he excepion19 In he
Unied Kingdom he naional minimum wage updaed annually is jus more han $10per hour and he curren conservaive governmen is moving o increase i wih he
goal o reaching 60 percen o median earnings by 202020 In addiion o a much higher
minimum wage UK workers also have a guaranee o 28 days o paid ime off each year
and have sronger job securiy proecions21
In erms o addressing scheduling sandards workers in he Unied Kingdom enjoy a
ldquorigh o requesrdquo flexible and predicable schedules and in urn employers have an
obligaion o respond in a ldquoreasonable mannerrdquo including evaluaing he pros and cons
o he applicaion discussing he reques wih he employee and providing an appeal
process22
Te law is showing resuls Surveys have ound ha he number o requessreused by employers dropped afer passage o he legislaion and hree years afer
he law was enaced a survey in 2006 showed ha here was increased availabiliy o
flexible working arrangemens and a 7 percenage poin increase in workplaces offer-
ing a leas one o six flexible working arrangemens o heir employees23 Already his
idea is gaining momenum saeside wih Vermon and San Francisco adoping righ
o reques laws and he Schedules Ta Work Ac was inroduced in he House and
Senae o address hese issues
Work-family policies
A second area where he Unied Saes could learn rom is neighbors is in he area
o work-amily balance and encouraging womenrsquos labor orce paricipaion Beween
1990 and 2010 US emale labor orce paricipaion ell rom 6h o 17h among 22
OECD counries24 Research by Francine Blau and Lawrence Kahn has ound ha 28
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 514
5 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
percen o 29 percen o his decrease could be explained by oher counriesrsquo expan-
sion o amily-riendly policies including parenal leave and par-ime work enile-
mens25 whereas he Unied Saes guaranees no paid sick days and sands alone in
ailing o offer any orm o paid amily leave26
In conras he Unied Kingdom gives almos all workers a legal enilemen o paid sick
days provides paid amily leave and has a comparaively expansive sysem o pre-K andchild care assisance27 Denmark offers 12 monhs o paid amily leave28 And in Canada
parenal leave consiues up o 15 weeks o maerniy benefis plus an addiional 35
weeks or parenal care by eiher paren afer he birh or adopion o a child29
In he Unied Saes our lack o paid amily leave has implicaions or usage o he saey
ne In New Jersey or example where here is a sae paid amily leave program in place
a recen sudy conduced by Rugers Universiy ound ha women who use paid leave
are significanly more likely o be working 9 o 12 monhs afer a childrsquos birh han hose
who do no ake any leave30 Moreover women in New Jersey aking paid leave repored
wage increases rom prebirh o posbirh and were 39 percen less likely o receivepublic assisance and 40 percen less likely o receive assisance rom he Supplemenal
Nuriion Assisance Program ormerly known as ood samps in he year afer he
childrsquos birh compared wih women who did no ake leave31
More adequate social insurance
Finally oher OECD counries end o have significanly more adequae social insur-
ance regimes ha he Unied Saes or he messy ups and down o lie such as a healh
crisis unemploymen birh o a child or onse o a disabiliy I will briefly reviewseveral examples below
Health insurance
Nearly all advanced naions offer universal healh care coverage32 In conras in he
Unied Saes 19 saes have reused o implemen he Affordable Care Acrsquos Medicaid
expansion leaving millions o low-income aduls wihou access o care and unable o
purchase insurance on he healh care exchanges33
Child benefits
Anoher common hread across many rich naions is a child benefi ha significanly
reduces child povery34 For example he new governmen is Canada is slaed o signifi-
canly expand is child benefi or low- and moderae-income amilies and he Unied
Kingdom provides a amily allowance35 o all low- and middle-income amilies wih
children hrough is Child Benefi36 and Child ax Credi37
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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5 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
percen o 29 percen o his decrease could be explained by oher counriesrsquo expan-
sion o amily-riendly policies including parenal leave and par-ime work enile-
mens25 whereas he Unied Saes guaranees no paid sick days and sands alone in
ailing o offer any orm o paid amily leave26
In conras he Unied Kingdom gives almos all workers a legal enilemen o paid sick
days provides paid amily leave and has a comparaively expansive sysem o pre-K andchild care assisance27 Denmark offers 12 monhs o paid amily leave28 And in Canada
parenal leave consiues up o 15 weeks o maerniy benefis plus an addiional 35
weeks or parenal care by eiher paren afer he birh or adopion o a child29
In he Unied Saes our lack o paid amily leave has implicaions or usage o he saey
ne In New Jersey or example where here is a sae paid amily leave program in place
a recen sudy conduced by Rugers Universiy ound ha women who use paid leave
are significanly more likely o be working 9 o 12 monhs afer a childrsquos birh han hose
who do no ake any leave30 Moreover women in New Jersey aking paid leave repored
wage increases rom prebirh o posbirh and were 39 percen less likely o receivepublic assisance and 40 percen less likely o receive assisance rom he Supplemenal
Nuriion Assisance Program ormerly known as ood samps in he year afer he
childrsquos birh compared wih women who did no ake leave31
More adequate social insurance
Finally oher OECD counries end o have significanly more adequae social insur-
ance regimes ha he Unied Saes or he messy ups and down o lie such as a healh
crisis unemploymen birh o a child or onse o a disabiliy I will briefly reviewseveral examples below
Health insurance
Nearly all advanced naions offer universal healh care coverage32 In conras in he
Unied Saes 19 saes have reused o implemen he Affordable Care Acrsquos Medicaid
expansion leaving millions o low-income aduls wihou access o care and unable o
purchase insurance on he healh care exchanges33
Child benefits
Anoher common hread across many rich naions is a child benefi ha significanly
reduces child povery34 For example he new governmen is Canada is slaed o signifi-
canly expand is child benefi or low- and moderae-income amilies and he Unied
Kingdom provides a amily allowance35 o all low- and middle-income amilies wih
children hrough is Child Benefi36 and Child ax Credi37
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
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6 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Te Unied Saes has a Child ax Credi or CC which offers up o $1000 per
child Te reundable porion phases in a a rae o 15 cens per dollar saring a
$3000 o earnings so ha a amily wih wo children earning a ull-ime minimum
wage salary would receive approximaely $1800 insead o he ul l $200038 However
i Congress ails o ac o make permanen he 2009 provisions o he CC991252slaed
o expire in 2017991252ha same working amily would only receive $72 rom he CC
moving orward39 Te CC is an imporan ani-povery ool in he Unied Saes bu i could be srenghened by ensuring ha he ull credi reaches all low- and
moderae-income amilies indexing he credi o inflaion so ha i keeps pace wih
he rising cos o childrearing and adding a Young Child ax Credi o $1500 or
children under age 3 available in monhly insallmens in recogniion o he paricu-
lar squeeze ha parens o young children ace and he elevaed imporance o income
in he early years or childrenrsquos long-erm oucomes40
Unemployment insurance41
While the United Statesrsquo unemployment insurance or UI system has played an
important role in mitigating poverty and providing macroeconomic stabilizationcompared with other nations
[T]he United States has one of the least generous UI systems in the developed world
Jobless benefit programs in European nations and most other OECD member coun-
tries (sic) programs generally serve significantly larger shares of their unemployed
populations provide benefits that replace a significantly higher share of workerrsquos
previous earnings and offer benefits for far longer durations than the United Statesrsquo UI
program42 Additionally most other countries require employers to offer severance pay
which comes in addition to jobless benefits43
For example he vas majoriy o workers in Denmark are guaraneed wo years o
unemploymen insurance a a 90 percen wage replacemen44 and in addiion o is
conribuory insurance he Unied Kingdom guaranees means-esed unemploymen
assisance o low-income people who are unemployed45
In he Unied Saes our UI sysem ldquoproecs workers and heir amilies agains hard-
ship in he even o job loss by emporarily replacing a porion o heir los wages while
hey seek reemploymen hellip UI is a ederal-sae program wih minimal ederal require-
mens and remendous sae flexibiliy hellip Hisorically saes have had maximum
benefi duraions o 26 weeks or longer However in a recen rend eigh saes have
reduced he number o weeks o benefis available o ewer han 26 weeks wih Florida
cuting off benefis a jus 14 weeks46
ldquoThe recent economic downturn offers a stark reminder of the critical impor-
tance of the UI system While benets are modest averaging just over $300 per
week and replacing 46 percent of wages for the typical worker47 UI protected
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 714
7 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
more than 5 million Americans from poverty in 2009 when unemployment
was at historic heights48 In addition to mitigating poverty and hardship UI also
functions as a powerful macroeconomic stabilizer during recessions by putting
dollars in the pockets of hard-hit unemployed workers who will then go out and
spend them in their local communitiesrdquo
Yet as ldquo[e]ffective as UI is it fails to reach many unemployed workers in theirtime of need As of December 2014 the UI recipiency ratemdashor the share of job-
less workers receiving UI benetsmdashfell to an historic low of 231 percentrdquo49
Disability benefits50
The United States offers ldquomodest but vitalrdquo disability benets in a regime in
which it is incredibly difcult to qualify for aid In fact the United States has
the strictest disability standard in the developed world51 and our Social Security
Disability Insurance or SSDI and Supplemental Security Income or SSI
programs include strong work incentives52 SSDI benets are ldquomodest typi-
cally replacing half or less of a workerrsquos earningsrdquo The average SSDI benetfor disabled workers ldquoin 2015 is about $1165 per monthmdashnot far above the
federal poverty level for an individualrdquo53 SSDI benets are ldquoso modest that many
beneciaries struggle to make ends meet nearly one in ve or about 16 million
disabled-worker beneciaries live in povertyrdquo But without SSDI ldquothis gure
would more than double and more than 4 million beneciaries would be poorrdquo54
SSI benets are even more meager at a maximum of $733 per month in 2015
ldquojust three-quarters of the federal poverty line for an individualrdquo
ldquoAs long projected by Social Securityrsquos actuaries the number of workers
receiving Disability Insurance has increased over time due mostly to demo-graphic and labor-market shifts According to recent analysis by Social Security
Administration researchers the growth in the Disability Insurance program
between 1972 and 2008 is due almost entirely (90 percent) to the Baby Boomers
aging into the high-disability years of their 50s and 60s the rise in womenrsquos
labor-force participation and population growth55 The increase in the Social
Security retirement age has been another signicant factor Importantly as the
Baby Boomers have begun to age into retirement the programrsquos growth has
already leveled offrdquo to its lowest level in 30 years ldquoand is projected to decline fur -
ther in the coming years as Boomers continue to retirerdquo56
Efforts to point to disability reform in countries such as the United Kingdom
Australia and the Netherlands as models for the United States ignore the fact that
even after these reforms these countries still have higher recipiency rates more
adequate benets and spend more as a share of gross domestic product or GDP
on their programs than we do57 Rather by emulating other countriesrsquo policiesmdash
such as paid leave better access to long-term services and supports and universal
health coveragemdashwe could build upon our current system and give workers with
disabilities a fairer shot at economic opportunity58
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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8 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
A note on the lsquosubmerged welfare statersquo
While oher OECD counries end o spend more as a share o GDP in erms o public
social expendiures looking a ne social expendiures which include expendiures
subsidized hrough he ax code991252such as employer-subsidized healh care or higher-
income amilies991252he Unied Saes acually spends more as a share o GDP han
many oher OECD counries59 Tis ldquosubmerged welare saerdquo underscores ha socialexpendiures do no jus benefi sruggling amilies bu also exend up o include many
wealhy amilies in he Unied Saes60 Tus as we seek o discuss welare reorms i is
imporan o noe ha while he Unied Saes is relaively ungenerous when i comes o
helping lower-income amilies looking a our ne social expendiures we are consider-
ably more generous o upper-income amilies han oher naions
More broadly as we discuss welare reorm i is imporan o consider reorm o cor-
porae welare and ax expendiures ha primarily benefi he wealhy Alhough he
op 01 percen holds as much wealh as he botom 90 percen in he Unied Saes
a ypical person in he op 01 percen received $3339161
las year rom he larges ohese ederal ax programs while an American in he botom 20 percen received abou
$7762 I is imporan o keep his conex in mind as Congress considers ax and budge
decisions regarding low-income amilies
The dangers of cherry-pick ing lessons
While here are many imporan lessons o ake rom oher naionrsquos policies here is a
danger in cherry-picking reorms rom oher counries ha eed ino heir preconceived
noion ha block graning and cuting core income securiy programs are he bes pahsorward Tese policy lessons are ofen divorced rom he broader ramework hese coun-
ries have in place wih regards o labor righs work-amily balance and social insurance
For example some have poined o he Universal Credi in he Unied Kingdom a
policy ha combines several means-esed benefis ino one paymen o amilies as he
inspiraion or effors o consolidae and block-gran muliple ani-povery programs
in he Unied Saes Ye he Universal Credi bears litle resemblance o hese propos-
als and is siuaed in a much differen policy regime as noed above wih higher wages
sronger work-amily policies and more adequae income securiy programs63
For one hing he Unied Kingdomrsquos Universal Credi is srucured as a legal enile-
men991252meaning ha all eligible low-income people have a righ o receive i991252and one
ha is adminisered cenrally by a single governmen agency In conras block gran
proposals here in he Unied Saes limi he exen o which eligible amilies can access
needed help Tey also decenralize adminisraion o unds o saes which have a long
hisory o divering hose unds away rom he core purposes o he block gran64
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1114
11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
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12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 914
9 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
For example emporary Assisance or Needy Families65 or ANF which some lif up
as a model or oher programs has ailed o respond o he recession or he increase in
child povery in recen years ldquorising by jus 16 percen66 beween he onse o he reces-
sion and December 2010 while he number o unemployed workers rose by 88 percen
during he same periodrdquo67 Te block gran has los approximaely one-hird o is value
since 1996 and even more in saes ha used o receive supplemenal grans Whereas
i used o serve approximaely wo-hirds o poor amilies wih children oday heprogram only serves abou one in our poor amilies wih children991252and in many saes
i serves ar ewer68 ldquoIn comparison he Supplemenal Nuriion Assisance Program
is highly effecive a reaching sruggling individuals and amilies wih 8 in 10 eligible
households receiving needed nuriion assisancerdquo69
Moreover saes have litle o no accounabiliy or spending he unds oward
ANFrsquos core purposes wih recen daa showing ha saes only spen an average o
8 percen o he block gran on work-relaed aciviies and less han hal o he block
gran on ldquocore purposesrdquo70
ldquoIn conras in programs such as SNAP approximaely 95 percen o program dollars
go o helping sruggling amilies purchase ood71 Te error rae or SNAP is among
he lowes o all governmen programs wih ewer han 1 percen o SNAP benefis
going o households ha do no mee he programrsquos crieria72 Research also shows
ha SNAP booss healh educaional and employmen oucomes in he long erm73
Raher han model oher programs afer ANF policymakers should be seeking ways
o boos he programrsquos effeciveness and ransparency o ensure ha dollars are going
oward providing income and employmen suppor o sruggling amiliesrdquo74 Indeed as
Ron Haskins a long-ime ormer Republican saffer and one o he chie archiecs o
ANF said recenly abou he program ldquoSaes did no uphold heir end o he bargain
So why do somehing like his againrdquo75
FIGURE 1
Share of the eligible US population participating in Aid to Families with
Dependent Children or AFDC Temporary Assistance for Needy Families or
TANF and the Supplemental Nutrition Assistance Program or SNAP
Source US Department of Health and Human Services Welfare Indicators and Risk Factors Annual Report to Congress (2014) available at
httpaspehhsgovhspindicators-rtcindexcfm
20
40
60
80
100
1976 1981 1986 1991 1996 2001 2006 2011
AFDC or TANF
SNAP
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1014
10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1114
11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1214
12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
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13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1014
10 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Anoher reason he Universal Credi offers a poor example or he Unied Saes is ha
one o he main problems he Unied Kingdom is rying o address991252financial penal-
ies or work991252is ar less o an issue in he Unied Saes in par due o he design o our
Earned Income ax Credi or EIC991252which kicks in a he firs dollar o earnings76 In
ac his is one area where oher counries seeking o address work disincenives caused
by loss o benefis can learn rom he Unied Saes
ogeher he Earned Income and Child ax Credis reward work and lifed approxi-
maely 10 million people ou o povery las year77 No only do hese credis improve
he shor-erm well-being o children hrough miigaing povery bu hey also improve
long-erm educaion78 oucomes or children
As Congress debaes ax exenders i should proec and build upon he EICrsquos bipari-
san success In ac Congress should no make any provision permanen or businesses
wihou making permanen provisions o he EIC and CC se o expire in 2017
Allowing hese key pars o he credis o expire would push approximaely 16 million
people including 8 million children ino or more deeply ino povery79
Moreover hereis growing biparisan suppor rom House Speaker Paul Ryan (R-WI) o Presiden
Obama or expanding he EIC or childless aduls he only group our counry cur-
renly axes more deeply ino povery80
Regarding concerns abou he US saey ne penalizing work he bigges issue in his
regard is saes ha have no ye expanded Medicaid In hese 19 saes a amily who earns
oo much o qualiy or radiional Medicaid bu no enough o qualiy or subsidies o
purchase on he exchanges alls ino a healh coverage gap81 Te answer o his raher han
consolidaion and block-graning o programs is or all saes o expand Medicaid
Policy implications and conclusion
How do he lessons rom oher counries ranslae ino policy implicaions or he
Unied Saes
Firs i is imporan no o go backward In general he OECD naions wih he bes
oucomes have increased he share o heir GDP hey commi o public social insurance
and invesmens over he pas wo decades82 While many OECD naions have increased
heir invesmens in acive labor marke policies hese same naions coninue o provide
a more adequae floor han we have in he Unied Saes And wha he Unied Saes
does have in place while in need o improvemen plays a significan role in miigaing
povery and hardship In ac wihou he saey ne we currenly have in his counry
povery raes would be nearly wice as high83 Raher han urn o ANF as a model or
oher saey ne programs we should proec and srenghen programs such as SNAP
ax credis or working amilies and Medicaid
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1114
11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1214
12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1314
13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1114
11 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Second while he Unied Saes doesnrsquo need o emulae he exac policies o our
OECD counerpars we can cusomize uniquely American soluions ha move oward
he same values o rewarding and valuing work hrough srong labor sandards encour-
aging womenrsquos labor orce paricipaion hrough improved work-amily policies and
bolsering our social insurance sysem o beter accoun or he messy ups and downs
o lie Tis includes policies84 such as raising he minimum wage making permanen
he 2009 provisions o he Earned Income and Child ax Credis slaed o expire in2017 and expanding he EIC or childless aduls enacing universal paid amily and
medical leave and paid sick days enacing he righ o reques a flexible and predic-
able work schedule invesing in child care and early educaion expanding Medicaid
srenghening our unemploymen insurance sysem enabling all low- and moderae-
income amilies o claim he ull CC and adding on a Young Child ax Credi or
amilies wih children under age 3 o accoun or he imporance ha hese early years
play in childrenrsquos long-erm oucomes85
Such policies would no only cu povery and economic mobiliy hrough beter
employmen educaional and healh oucomes in many cases hey also wouldreduce he need o amilies o urn o he saey ne in he firs place because policies
ha bolser wages improve working condiions and offer work suppors such as child
care and healh insurance increase he likelihood ha amilies can suppor hemselves
in he labor marke
Tese ideas noed above are no jus inernaional sandards Policies such as raising he
minimum wage and enacing paid amily leave command he suppor o he vas major-
iy o Americans across he ideological specrum86 Effors o symie he enacmen o
such policies ignore evidence rom boh abroad and rom US saes ha hese iniia-
ives are effecive in cuting povery and boosing middle-class securiy
Melissa Boteach is the Vice President of the Poverty to Prosperity Program at the Center
for American Progress
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1214
12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1314
13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1214
12 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
Endnotes
1 Elise Gould ldquoWhy Americarsquos Workers Need Faster WageGrowth ndash And What We Can Do About Itrdquo (WashingtonEconomic Policy Institute 2014) available at httpwwwepiorgpublicationwhy-americas-workers-need-faster-wage-growth
2 Judith Warner ldquoTo Fight Inequality Support Womenrsquos Workrdquo(Washington Center for American Progress 2015) available
at httpswwwamericanprogressorgissueswomenreport20150929122152to-fight-inequality-support-womens-work
3 American Association of University Women ldquoThe Simple Truth about the Gender Pay Gaprdquo (2015) available at httpwwwaauworgresearchthe-simple-truth-about-the-gender-pay-gap
4 Heidi Hartmann Jeff Hayes and Jennifer Clark ldquoHow EqualPay for Working Women would Reduce Poverty and Growthe American Economyrdquo (Washington Institute for WomenrsquosPolicy Research 2014) available at httpwwwiwprorgpublicationspubshow-equal-pay-for-working-women-would-reduce-poverty-and-grow-the-american-economy
5 Melissa Boteach ldquoReimagining Our Social Contract TheSafety Net Is Soc ial Insurance for All Americansrdquo Centerfor American Progress August 11 2014 available athttpswwwamericanprogressorgissuespoverty
news2014081195373reimagining-our-social-contract-the-safety-net-is-social-insurance-for-all-americans
6 Mark Robert Rank Thomas A Hirschl and Kirk A FosterChasing the American Dream Understanding What ShapesOur Fortunes (New York Oxford University Press 2014)
7 Organisation for Economic Co-operation and DevelopmentldquoIn it Together Why Less Inequality Benefits Al lrdquo (2015)
8 Organisation for Economic Co-operation and DevelopmentldquoInequality Poverty raterdquo available at httpsdataoecdorginequalitypoverty-ratehtm (last accessed November 2015)
9 Richard Freeman and others ldquoBargaining for the AmericanDreamrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissueseconomyreport20150909120558bargaining-for-the-american-dream
10 Carmen DeNavas-Walt and Bernadette D Proctor ldquoIncomeand Poverty in the United States 2014rdquo (WashingtonBureau of the Census 2015) available at httpwwwcensusgovcontentdamCensuslibrarypublications2015demop60-252pdf
11 US Bureau of Labor Statistics ldquoUnion Members SummaryrdquoPress release January 23 2015 available at httpwwwblsgovnewsreleaseunion2nr0htm
12 Sylvia A Allegretto and others ldquoFast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industryrdquo(Berkeley CA University of California Berkeley LaborCenter 2013) available at httplaborcenterberkeleyedufast-food-poverty-wages-the-public-cost-of-low-wage-jobs-in-the-fast-food-industry
13 Ibid
14 Rachel West ldquoThe Murray-Scott Minimum-Wage Bill A Win-Win for Working Families and Taxpayersrdquo Center for Ameri-
can Progress April 30 2015 available at httpswwwameri-canprogressorgissuespovertynews20150430111808the-murray-scott-minimum-wage-bill-a-win-win-for-work-ing-families-and-taxpayers
15 Liz Watson Lauren Frohlich and Elizabeth Johnston ldquoCol-lateral Damage Scheduling Challenges for Workers in Low-Wage Jobs and Their Consequencesrdquo (Washington NationalWomenrsquos Law Center 2014) availabl e at httpwwwnwlcorgsitesdefaultfilespdfscollateral_damage_schedul-ing_fact_sheetpdf
16 Ibid
17 Daniel Schneider and Adam Reich ldquoMarrying Ainrsquot HardWhen You Got a Union Card Labor Union Membership andFirst Marriagerdquo Social Problems 61 (4) (2014) 625ndash643
18 Freeman and others ldquoBargaining for the American Dreamrdquo
19 European Trade Union Institute ldquoCollective Bargainingrdquoavailable at httpwwwworker-participationeuNational-Industrial-RelationsCountriesDenmarkCollective-Bargain-ing (last accessed November 2015)
20 UK Department for Business Innovation amp Skills ldquoNationalMinimum Wagerdquo (2015) available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile470317BIS-15-481-NMW-interim-evidence-2015pdf
21 Rebecca Ray Milla Sanes and John Schmitt ldquoNo-VacationNation Revisitedrdquo (Washington Center for Economic andPolicy Research 2013) available at httpwwwceprnetdocumentspublicationsno-vacation-update-2013-05pdf
22 GOVUK ldquoFlexible workingrdquo available at httpswwwgovukflexible-workingoverview (last accessed November 2015)
23 Anna Danziger and Shelley Waters Boots ldquoMemo on theImpact of the United Kingdomrsquos Flexible Working Actrdquo(Washington Georgetown University 2008) available athttpscholarshiplawgeorgetowneducgiviewcontentcgi
article=1011ampcontext=legal
24 Francine D Blau and Lawrence M Kahn ldquoFemale Labor Sup-ply Why is the US Falling Behindrdquo Working Paper 18702(National Bureau of Economic Research 2013)
25 Ibid
26 Center for Economic Policy Research ldquoUnited States LagsWorld in Paid Sick Days for Workers and Familiesrdquo availableat httpwwwceprnetdocumentspublicationspsd-summarypdf (last accessed November 2015)
27 Jody Heymann and others ldquoContagion Nation A Compari-son of Paid Sick Day Policies in 22 Countriesrdquo (WashingtonCenter for Economic and Policy Research 2009) availableat httpwwwceprnetdocumentspublicationspaid-sick-days-2009-05pdf Rebecca Ray Janet C Gornick a nd JohnSchmitt ldquoParental Leave Policies in 21 Countries AssessingGenerosity and Gender Equality rdquo (Washington Center for
Economic and Policy Research 2009) available at httpwwwlisdatacenterorgwp-contentuploadsparent-leave-report1pdf Kitty Stewart ldquoLabourrsquos record on the underfivesrdquo Working Paper 4 (Center for Analysis of Social Exclu-sion and London School of Economics and Political Science2013) available at httpsticerdlseacukdpscasespccSWP04pdf
28 European Union ldquoDenmark Creating proactive policiessupporting vulnerable children and their famili esrdquo availableat httpeuropaeuepiccountriesdenmarkindex_enhtm (last accessed November 2015)
29 Government of Canada ldquoEmployment Insurance Maternityand Parental Benefitsrdquo available at httpwwwservice-canadagccaengeitypesmaternity_parentalshtml (lastaccessed November 2015)
30 Linda Houser and Thomas P Vartanian ldquoPay Matters ThePositive Economic Impacts of Paid Family Leave for FamiliesBusinesses and the Publicrdquo (New Brunswick NJ Rutgers
Center for Women and Work 2012) available at httpsmlrrutgersedupaymatters-cwwreport-january2012
31 Ibid
32 Max Fisher ldquoHerersquos a Map of the Countries that ProvideUniversal Health Care (Americarsquos Still Not on It)rdquoThe Atlantic June 28 2012 available httpwwwtheatlanticcominter-nationalarchive201206heres-a-map-of-the-countries-that-provide-universal-health-care-americas-still-not-on-it259153
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1314
13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1314
13 Center for American Progress | Moving Americarsquos Families Forward Lessons Learned from Other Countries
33 Kaiser Family Foundation ldquoStatus of State Action on theMedicaid Expansion Decisio nrdquo available at httpkfforghealth-reformstate-indicatorstate-activity-around-expanding-medicaid-under-the-affordable-care-act (lastaccessed November 2015)
34 For cross-country comparisons please see UNICEF InnocentiResearch Centre ldquoMeasuring Child Poverty New leaguetables of child poverty in the worldrsquos rich countriesrdquo (2012)available at httpwwwunicef-ircorgpublicationspdfrc10_engpdf
35 Organisation for Economic Co-operation and Development
Doing Better for Children (2009)
36 GOVUK ldquoClaim Child Benefitrdquo available at httpswwwgovukchild-benefitwhat-youll-get (last accessed November2015)
37 GOVUK ldquoChild Tax Creditrdquo available at httpswwwgovukchild-tax-creditwhat-youll-get (last accessed November2015)
38 Rachel West Melissa Boteach and Rebecca Vallas ldquoHarness-ing the Child Tax Credit as a Tool to Invest in the NextGenerationrdquo (Washington Center for American Progress2015) available at httpswwwamericanprogressorgissuespovertyreport20150812118731harnessing-the-child-tax-credit-as-a-tool-to-invest-in-the-next-generation Chuck Marr Bryann DaSilva and Arloc Sherman ldquoLettingKey Provisions of Working-Family Tax Credits Expire WouldPush 16 Million People Into or Deeper Into Povertyrdquo(Washington Center for Budget and Policy Priorities 2015)
available at httpwwwcbpporgresearchfederal-taxletting-key-provisions-of-working-family-tax-credits-expire-would-push-16
39 This value has been revised from the November 17 oraltestimony to reflect the release of updated inflation projec-tions in September 2015 On the basis of updated inflationprojections the Center on Budget and Policy Prioritiesmdashsee ibidmdashrevised downward its prediction of the 2018minimum earnings threshold for the CTC from $14700 to$14600 Based on this revised threshold a family with twochildren earning a full-time minimum wage salary wouldreceive $72 rather than $57 as originally reported
40 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Next Generationrdquo
41 All quotes in this section are from previous CAP testimonybefore this committee For full text please see RebeccaVallas ldquoProtecting the Safety Net From Waste Fraud andAbuserdquo Testimony before the House Committee on Ways
and Means Subcommittee on Human Resources June3 2015 available at httpwaysandmeanshousegovwp-contentuploads201506Rebecca-Vallas-Testimony-060315-HR4pdf
42 For example Francersquos equivalent program replaces 67percent of wages for the typical worker Canadarsquos replaces63 percent and the Netherlandsrsquo replaces 70 percent TheNetherlands provides jobless benefits for up to 38 monthsand Germany provides them for up to 18 months SeeOrganisation for Economic Co-operation and DevelopmentOECD Reviews of Labour Market and Social Policies (2010) Seealso Wayne Vroman and Vera Brustenstev UnemploymentCompensation Around the World A Comparative Analysis(Kalamazoo MI Upjohn I nstitute Press 2005)
43 See also Robert Holzmann and others ldquoSeverance PayPrograms Around the World History Rationale Status andReformsrdquo (Bonn Germany Institute for the Study of Labor2011) available at httpftpizaorgdp5731pdf
44 R Daniel Kelemen ed Lessons from Europe What AmericansCan Learn from European Public Policies (Washington CQPress 2014)
45 GOVUK ldquoJobseekerrsquos Allowance (JSA)rdquo available at httpswwwgovukjobseekers-allowanceoverview (last accessedNovember 2015)
46 See also Center on Budget and Policy Priorities ldquoPolicyBasics How Many Weeks of Unemployment CompensationAre Availablerdquo available at httpwwwcbpporgresearcheconomypolicy-basics-how-many-weeks-of-unemployment-compensation-are-available (last accessed November 2015)
47 See also Marmor Social Insurance Americarsquos NeglectedHeritage and Contested Future
48 See also Arloc Sherman and Danilo Trisi ldquoSafety Net More Ef-fective Against Poverty Than Previously Thoughtrdquo (Washing-ton Center on Budget and Policy Priorities 2015) availableat httpwwwcbpporgresearchpoverty-and-inequalitysafety-net-more-effective-against-poverty-than-previously-thought
49 See also Rick McHugh and Will Kimball ldquoHow Low Can WeGo State Unemployment Insurance Programs Exclude Re-cord Numbers of Jobless Workersrdquo (Washington Economic
Policy Institute 2015) available at httpwwwepiorgpublicationhow-low-can-we-go-state-unemployment-insurance-programs-exclude-record-numbers-of-jobless-workers
50 All quotes in the following two paragraphs are from VallasldquoProtecting the Safety Net From Waste Fraud and A buserdquo
51 Rebecca Vallas ldquoSocial Security Disability Insurance APrimer for Rand Paul (and Everyone Else)rdquo TalkPoverty Janu-ary 15 2015 available at httptalkpovertyorg20150115rand-paul-social-security
52 Rebecca Vallas ldquoCutting Social Security Disability InsuranceWonrsquot Help Anyone Go Back to Workrdquo Center for A mericanProgress April 14 2015 available at httpswwwameri-canprogressorgissuespovertynews20150414110961cutting-social-security-disability-insurance-wont-help-anyone-go-back-to-work
53 See also US Social Security Administration ldquoMonthlyStatistical Snapshot September 2015rdquo available at httpwwwssagovpolicydocsquickfactsstat_snapshot (lastaccessed November 2015)
54 See also Rebecca Vallas and Shawn Fremstad ldquoSocial Secu-rity Disability Insurance A Bedrock of Security for AmericanWorkersrdquo (Washington Center for American Progress 2015)available at httpswwwamericanprogressorgissuespov-ertyreport20150616115195social-security-disability-insurance-a-bedrock-of-security-for-american-workers
55 See also David Pattison and Hilary Waldron ldquoGrowth in NewDisabled Worker Entitlements 1970ndash2008rdquo Social SecurityBulletin 73 (4) (2013) 25ndash48 available at httpwwwssagovpolicydocsssbv73n4v73n4p25pdf
56 See also Stephen Goss ldquoThe Financing Challenges Facingthe Social Security Disability Insurance Programrdquo Testimonybefore the House Committee on Ways and Means Subcom-mittee on Social Security March 14 2013
57 Shawn Fremstad and Rebecca Vallas ldquoThe Facts on SocialSecurity Disability Insurance and Supplemental Security In-come for Workers with Disabilitiesrdquo (Washington Center forAmerican Progress 2013) available at httpswwwameri-canprogressorgissuespovertyreport2013053064681the-facts-on-social-security-disability-insurance-and-sup-plemental-security-income-for-workers-with-disabilities
58 Ibid
59 Organisation for Economic Co-operation and DevelopmentldquoSocial Expenditure Updaterdquo (2014) figure 7 available athttpwwwoecdorgelssocOECD2014-Social-Expendi-ture-Update-Nov2014-8pagespdf
60 Suzanne Mettler ldquoReconstituting the Submerged State The Challenges of Social Policy Reform in the Obama ErardquoPerspectives on Politics 8 (3) 2010 803ndash824
61 Patricia Cohen ldquoTaxes Take Away but Also Give Back Mostlyto the Very Richrdquo The New York Times March 17 2015available at httpwwwnytimescom20150318businesseconomytaxes-take-away-but-also-give-back-mostly-to-the-very-richhtml_r=1
62 Emanuel Nieves Jeremie Greer and Ezra Levin ldquoThe Federal Tax Code Exacerbating Inequality and the Racial WealthGaprdquo (Washington Asset Building Policy Network 2015)available at httpassetbuildingpolicynetworkorgthe-federal-tax-code-exacerbating-inequality-and-the-racial-wealth-gap
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15
8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries
httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 1414
63 Helly Lee and others ldquoUniversal Credit A Primerrdquo (Washing-ton Center for American Progress Center for the Study ofSocial Policy and Center for Law and Social Polic y 2014)available at httpscdnamericanprogressorgwp-contentuploads201403UniversalCredit2-CLASP-brief-FINAL1pdf
64 Rebecca Vallas and Melissa Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance ProgramsrdquoCenter for American Progress April 29 2015 availableat httpswwwamericanprogressorgissuespovertynews20150429112034top-5-reasons-why-tanf-is-not-a-model-for-other-income-assistance-programs
65 This section quotes and paraphrases from Vallas andBoteach ldquoTop 5 Reasons Why TANF Is Not a Model for OtherIncome Assistance Programsrdquo
66 Center on Budget and Policy Priorities ldquoPolicy Basics AnIntroduction to TANFrdquo available at httpwwwcbpporgre-searchpolicy-basics-an-introduction-to-tanf (last accessedNovember 2015)
67 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Modelfor Other I ncome Assistance Programsrdquo
68 Ife Floyd and Liz Schott ldquoTANF Cash Benefits Have Fallen byMore Than 20 Percent in Most States and Continue to Eroderdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgresearchfamily-income-supporttanf-cash-benefits-have-fallen-by-more-than-20-percent-in-most-states
69 Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model
for Other I ncome Assistance Programsrdquo
70 Liz Schott LaDonna Pavetti and Ife Floyd ldquoHow StatesUse Federal and State Funds Under the TANF Block Grantrdquo(Washington Center on Budget and Policy Priorities 2015)available at httpwwwcbpporgsitesdefaultfilesatomsfiles4-8-15tanf_0pdf
71 See also Robert Greenstein and CBPP Staff ldquoRomneyrsquosCharge that Most Federal Low-Income Spending Goes forlsquoOverheadrsquo and lsquoBureaucratsrsquo is Falserdquo (Washington Centeron Budget and Policy Priorities 2012) available at httpwwwcbpporgresearchromneys-charge-that-most-federal-low-income-spending-goes-for-overhead-and-bureaucrats-is
72 See also Center on Budget and Policy Priorities ldquoPolicyBasics Introduction to SNAPrdquo available at httpwwwcbpporgsitesdefaultfilesatomsfilespolicybasics-foodstampspdf (last accessed November 2015)
73 See also Hilary W Hoynes Diane Whitmore Schanzenbachand Douglas Almond ldquoLong Run Impacts of ChildhoodAccess to the Safety Netrdquo Working Paper 18535 (NationalBureau of Economic Research 2012)
74 Entire quote from Vallas and Boteach ldquoTop 5 Reasons Why TANF Is Not a Model for Other Income Assistance Programsrdquo
75 Eduardo Porter ldquoThe Republican Partyrsquos Strategy to IgnorePovertyrdquo The New York Times October 27 2015 available athttpwwwnytimescom20151028businesseconomya-strategy-to-ignore-povertyhtml
76 Lee and others ldquoUniversal Credit A Primerrdquo
77 Melissa Boteach Shawn Fremstad and Rachel West ldquo3 Things You May Have Missed in the New Poverty Incomeand Inequality Datardquo (Washington Center for AmericanProgress 2015) available at httpswwwamericanprogressorgissuespovertyreport201509161211483-things-you-may-have-missed-in-the-new-poverty-income-and-inequality-data
78 Chuck Marr and others ldquoEITC and Child Tax Credit PromoteWork Reduce Poverty and Support Childrenrsquos Develop-ment Research Findsrdquo (Washington Center on Budget andPolicy Priorities 2015) available at httpwwwcbpporgre-searchfederal-taxeitc-and-child-tax-credit-promote-work-
reduce-poverty-and-support-childrensfa=viewampid=3793
79 Marr DaSilva and Sherman ldquoLetting Key Provisions ofWorking-Family Tax Credits Expire Would Push 16 MillionPeople Into or Deeper Into Povertyrdquo
80 Chuck Marr ldquoRyan Adds Momentum to Expanding EITC forChildless Workersrdquo Off the Charts July 24 2014 availableat httpwwwcbpporgblogryan-adds-momentum-to-expanding-eitc-for-childless-workers
81 Melissa Boteach and Megan Martin ldquoImproving EconomicOpportunityrdquo (Washington Center for American Progress2014) available at httpswwwamericanprogressorgissuespovertyreport2014072494505improving-economic-opportunity
82 Organisation for Economic Co-operation and DevelopmentHowrsquos Life 2015 Measuring Well-being (2015)
83 Danilo Trisi ldquoSafety Net Cut Poverty Nearly in Half Last YearNew Census Data Showrdquo Off the Charts October 16 2014available at httpwwwcbpporgblogsafety-net-cut-poverty-nearly-in-half-last-year-new-census-data-show
84 Rebecca Vallas and Melissa Boteach ldquoThe Top 10 Solu-tions to Cut Poverty and Grow the Middle Classrdquo Centerfor American Progress September 17 2014 availableat httpswwwamericanprogressorgissuespovertynews2014091797287the-top-10-solutions-to-cut-poverty-and-grow-the-middle-class
85 West and others ldquoHarnessing the Child Tax Credit as a Toolto Invest in the Nex t Generationrdquo
86 A recent poll conducted by Hart Research Associatesshowed that 75 percent of Americans ldquosupport an increasein the federal minimum wage to $1250 by 2020 and that 71percent of Americans believe the minimum wage for tippedworkers should be increased so that all workers are subjectto the same wage floorrdquo The poll also showed that 63
percent of Americans ldquosupport an even greater increase inthe minimum wage to $15 by 2020rdquo For more informationplease see National Employment Law Project ldquoNew PollShows Overwhelming Support for Major Minimum WageIncreaserdquo Press release January 15 2015 available at httpwwwnelporgcontentuploads201503PR-Federal-Mini-mum-Wage-Poll-Jan-2015pdf Another poll conducted bythe Associated Press-GfK showed that most Americansmdash6in 10mdashfavored proposals to raise the minimum wage andincrease paid leave policies For more i nformation pleasesee Emily Swanson ldquoAP-GfK Poll Most Americans favor ahigher minimum wagerdquo AP-Gfk February 19 2015 availableat httpap-gfkpollcomfeaturedfindings-from-our-latest-poll-15