Is there only one way out of in-work poverty? Difference by gender and race in the US

Abstract

The persistency of in-work poverty during the last de cades challenges the idea that employment is sufficient to escape poverty. Research has focused on the risk factors associated with in-work poverty, but scholars know little about individuals' experiences after exiting it. The Sequence Analysis Multistate Model procedure is applied to three high-quality longitudinal data sources (NLSY79, NLSY97, and PSID) to establish a typo logy of employment pathways out of in-work poverty and estimate how gender and race are associated with each pathway. We identify five distinct pathways characterized by varying degrees of labor market attachment, economic vulnerability, and volatility. White men are most likely exit in-work poverty into stable employment outside of poverty, while Black men and women likely remain vulnerable and at-risk of social exclusion as well as recurrent spells of in-work poverty. Gender and race differences persist even after controlling for labor market related characteristics and family demographic behavior.