When Work Is Not Enough: State and Federal Policies to Support Needy Workers

Chapter 2. Work Support Programs

To identify the programs and benefits that compose the work support system is a devilish problem for two reasons: (1) it is difficult to know what programs to exclude, because government has a broad mandate to promote and support employment opportunities; and (2) many of the same programs serve needy workers and nonworking welfare recipients. How can the work support system be distinguished from more general efforts by government to promote and support employment? How can the welfare system and the work support system be distinguished? To overcome these ambiguities , we propose a number of standards that elaborate and clarify the definition of the work support system presented in chapter 1 and explain why programs and program benefits have been classified as either within or outside the work support system for the purposes of this research. Work support programs and benefits must specifically target needy workers or their dependents, rather than assisting workers in general. We exclude from the work support system the many government programs that provide material assistance to workers or people with a work history but do not specifically target needy workers. Two large-scale social programs that are excluded from the system by this standard are the Old Age, Survivors, and Disability Insurance (OASDI) programs (commonly referred to as“Social Security”) and the Unemployment Insurance (UI) program. Although aspects of Social Security are redistributive and many needy workers qualify for OASDI payments—Social Security is an important income source for many needy people (particularly retirees)—OASDI benefits do not specifically target needy workers or their dependents. For the same reason, this standard excludes unemployment com27 2 Work Support Programs 02-8191-1 ch02 11/2/05 4:18 PM Page 27 pensation.1 Although UI provides benefits to qualified workers who lose their jobs through no fault of their own and this program does benefit many needy workers, people qualify for UI on the basis of their work and earnings history, the circumstances of their job loss,and their willingness to comply with the program ’s work requirements; UI does not target needy workers, though it does serve workers in need of temporary income support. This standard also has implications for which benefits within means-tested programs are considered to be part of the work support system. It establishes two key conditions: work support beneficiaries must be workers or dependents of workers and work support beneficiaries must be needy. Payments under Temporary Assistance for Needy Families (TANF) or food stamp benefits provided to people without earned income are not work supports. However, benefits from these same programs are work supports when they complement earned income. School meal subsidies (for the school lunch or breakfast programs) provided regardless of income are not work support benefits because they are not targeted to needy working families. However, subsidies that pay for free or reduced-price breakfasts and lunches are work supports because these benefits target low-income families. Work support programs must broadly target needy workers or their dependents , rather than special subcategories of needy workers. Many means-tested government programs are designed to provide benefits to specific categories of needy people, such as veterans, the elderly, disabled people, or people with health concerns.2 We exclude categorical programs from the work support system because they do not broadly target needy working families. This standard excludes Supplemental Security Income (SSI). Although SSI benefits are means tested and may supplement earned income, the purpose of the SSI program is to ensure that elderly, blind, or disabled people have an adequate minimum income, whether they work or not.3 The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is also excluded by this standard. Although WIC benefits may supplement earned income, the program targets pregnant women and others, including low-income children under age five, who experience specific nutrition risks.4 28 Describing the Work Support System 1. It was difficult to decide whether to include unemployment compensation as a work support. Sawhill and Haskins (2002b) are ambiguous about its status. They do not list it among the work support programs they describe, but they do discuss the significance of reforming the unemployment insurance system as a means of assisting those making the transition from welfare to work. 2. Melnick (1994). 3. Daly and Burkhauser (2003). 4. U.S. House of Representatives, Committee on Ways and Means (2000) (hereafter, Green Book). 02-8191-1 ch02 11/2/05 4:18 PM Page 28 [18.225.31.159] Project MUSE...