Meet the Low-Wage Workforce

Abstract

This paper strives to show the diversity among low-wage workers at the national and regional levels, in order to better inform strategies to help them improve their employment prospects. A foundational issue, however, is which low wage workers to assist. Conceptually, it is clear: Public policy has a role in assisting economically vulnerable low-wage workers who rely entirely or substantially on those low wages to support themselves and their families, particularly if they appear to be unlikely to advance to higher-paid jobs. Pinpointing this population in the data, however, is more challenging. Although there are common approaches, there is no consensus definition of a low-wage worker. Additionally, population-level data do not provide a clear yes-or-no answer as to whether a low-wage job is a way station or a permanent destination for any given person, although it is possible to make inferences based on factors such as age and education.