moving america’s families forward: lessons learned from other countries

15
1 Center for American Progress |  Moving America’s Families Forward: Lessons Learned from Other Countries Moving America’s Families Forward: Lessons Learned from Other Countries  T est imo ny b efor e t he U.S. Hous e of Representatives Committee on Ways and Means, Subcommittee on Human Resources Melissa Boteach Vice President, Poverty to Prosperity Program Center for American Progress November 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  America n 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 . Tere are a number o innovaions across Organisaion or Economic Co-operaion and Developmen, or OECD, counries rom which he Unied Saes can learn. In oday’s esimony , I w ill underscore wo main poins: 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 women’s 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 nd and keep good jobs. I will provide specic examples o how oher counries are using hese policies o promoe greaer economic securiy and opporuniy. Second, eors 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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8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries

httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 114

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

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

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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

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

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

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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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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

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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

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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

8202019 Moving Americarsquos Families Forward Lessons Learned from Other Countries

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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

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

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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

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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

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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

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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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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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httpslidepdfcomreaderfullmoving-americas-families-forward-lessons-learned-from-other-countries 614

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

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

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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

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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

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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

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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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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

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

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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

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 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