View Research by Author - Harry Holzer

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Citation URL: http://www.urban.org/HarryHolzer

The case for expanding the EITC for workers without qualifying children is compelling, as the current EITC provides little help to this group. We argue that the EITC for these workers should: - provide these workers with a strong incentive to increase work effort;  - provide a significant subsidy to low-earning workers working near a full-time work level; - begin phasing out only after an individual is working at a level at least equivalent to full-time minimum wage work; - apply to both prime-age and younger workers; and - be effectively coordinated with the Making Work Pay Credit.

Between 2007 and 2008, real incomes fell and poverty rose in the United States, Institute Fellow Harry Holzer testified before the Joint Economic Committee of Congress. Even if the recession ends this year, rising unemployment will mean that real income keeps falling while poverty increases for a few more years — and almost certainly by much more than occurred between 2007 and 2008. It will likely take several years beyond 2010 before real income and poverty fully recover from the effects of the downturn.

A college education strongly affects whether or not children from poor or low-income families move up the economic ladder when they become adults. But they are less likely to enroll in either two- or four-year colleges, and less likely to complete a degree when they do, relative to those from middle- and upper-income families — even after accounting for differences in academic preparation. We review current federal efforts to help low-income students attend college, and recommend new policies that would improve their academic preparation, provide more effective guidance on selecting and paying for college, and improve retention and graduation rates.

In this Washington Post commentary, Institute Fellow Harry Holzer suggests ways to help those most adversely affected by the economic downturn—low-income single mothers, disadvantaged adults, youths, and their families.

Ramped-up education spending should be part of an economic stimulus package, Institute Fellow Harry Holzer argues, because it will increase the gross domestic product, lead to more hiring, add income to local economies, and contribute to future productivity.

In this paper I note the basic paradox of workforce development policy: that, in an era in which skills are more important than ever as determinants of labor market earnings, we spend fewer and fewer public (federal) dollars on workforce development over time. I present trends in funding and in program evolution over time for programs funded by the Department of Labor and others. I then review the cost-effectiveness of programs for adults and youth from the evaluation literature. I consider some other possible reasons for funding declines, and some newer developments in workforce policy, mostly at the state and local levels, before concluding with some policy recommendations.

In this paper, I review what we have learned about living wage laws and their impacts on the wages, employment and poverty rates of low-wage workers. I review the characteristics of these laws, predictions from economic theory about their likely effects, and two bodies of empirical evidence: studies across cities or metropolitan areas and those within particular cities. I conclude that living wage laws have modestly raised wage levels of low wage workers and have reduced their employment at covered firms, but that the magnitudes of both effects are likely quite small, given how few workers are usually covered by these ordinances.

The Earned Income Tax Credit enjoyed marked success bringing low-income women into the labor force in recent years. At the same time, labor force participation by low-income or less-education men stagnated, and declined among young black men. In response to these labor market conditions, this paper analyzes several EITC reform options directed at increasing the EITC for low-income workers, in the hopes of drawing these men into the labor force. We estimate the cost of various proposals and put forth an additional proposal that breaks the EITC into two components – one focused on individual workers and one focused on supporting children.

The Workforce Investment Act (WIA) officially expired in 2003 but has not yet been reauthorized. With a new administration and Congress due in 2009, what should they consider regarding workforce development and the disadvantaged population? This brief reviews the arguments for a workforce development system, examining both the strengths and weaknesses of the current WIA program. Among the proposals are expanded funding, and planning grants which states could use to target industries and sectors with unmet demands for skilled workers. They would then identify potential "pathways" for different groups of disadvantaged workers to meet those demands.

The Census Bureau released its annual report on income, poverty, and health insurance coverage for the U.S. population on August 26, 2008. According to the report, median household income increased by 1.3 percent in 2007, while the overall poverty rate dipped slightly and the number and percentage of people without health insurance decreased. While the overall numbers were positive, not everyone shared in the economic gains. The number and percentage of children in poverty increased, and households in the lowest 40 percent of the income distribution had no significant income gains.

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