Washington–A new study from The Pew Charitable Trusts, "Making Hard Choices: Navigating the Economic Shock of Unemployment," examines how American families cope with unexpected financial setbacks and how those periods of economic uncertainty draw down financial resources. The report studies families across race and income levels, revealing different experiences resulting from unemployment and the difficult choices many of them face.
Building upon Pew's prior research, this report underscores the significance of financial resources other than income, particularly savings and assets, in defending family economic security and the health of the American Dream.
"Even during periods of strong economic growth, unanticipated financial shocks can harm a family's prospects for upward mobility," said Erin Currier, Pew's economic mobility expert. "Savings and assets play a critical role in ensuring that families can build the resources to protect themselves in times of need and preserve the well-being of their children."
Analysis for "Navigating the Economic Shock of Unemployment" was conducted by researchers at the Institute on Assets and Social Policy at Brandeis University. Using a combination of quantitative and qualitative analysis, the study takes a close look at varying experiences of unemployment across race and family income from 1999 to 2009.
The research shows that families at every rung of the economic ladder experienced unemployment and other financial setbacks, but families at the bottom of the income ladder, Latinos, and blacks had the greatest risk of job loss and the least access to resources to buffer negative impacts. For example, when comparing households that experienced unemployment, the median wealth of white households was at least seven times that of black households in each year of the study.
Additionally, families who experienced unemployment in the ten-year period were 1.3 times more likely to have experienced a loss in wealth during the decade than other families, even when controlling for marital status, change in family income over the study period, head-of-household gender, race, and education.
"The evidence in this report provides insight into the actions that policymakers can take to help people who have experienced unemployment," said Janet Boguslaw, researcher at Brandeis' Institute on Assets and Social Policy. "There is no question that providing mechanisms for Americans to hold and secure assets in good times and in bad will help them and the economy as a whole over the long run."Boguslaw and her colleagues propose the following policy options in the report:
This work was supported in part by the Charles Stewart Mott Foundation.
The Institute on Assets and Social Policy develops strategies, processes, and policy alternatives that enable vulnerable populations to build resources and access opportunities to live securely and participate fully in all aspects of social and economic life. The Pew Charitable Trusts is a nonprofit organization that applies a rigorous, analytical approach to improve public policy, inform the public, and stimulate civic life.
Charity Adams | EurekAlert!
Obstructing the ‘inner eye’
07.07.2017 | Friedrich-Schiller-Universität Jena
Drone vs. truck deliveries: Which create less carbon pollution?
31.05.2017 | University of Washington
Physicists have developed a new technique that uses electrical voltages to control the electron spin on a chip. The newly-developed method provides protection from spin decay, meaning that the contained information can be maintained and transmitted over comparatively large distances, as has been demonstrated by a team from the University of Basel’s Department of Physics and the Swiss Nanoscience Institute. The results have been published in Physical Review X.
For several years, researchers have been trying to use the spin of an electron to store and transmit information. The spin of each electron is always coupled...
What is the mass of a proton? Scientists from Germany and Japan successfully did an important step towards the most exact knowledge of this fundamental constant. By means of precision measurements on a single proton, they could improve the precision by a factor of three and also correct the existing value.
To determine the mass of a single proton still more accurate – a group of physicists led by Klaus Blaum and Sven Sturm of the Max Planck Institute for Nuclear...
The research team of Prof. Dr. Oliver Einsle at the University of Freiburg's Institute of Biochemistry has long been exploring the functioning of nitrogenase....
A one trillion tonne iceberg - one of the biggest ever recorded -- has calved away from the Larsen C Ice Shelf in Antarctica, after a rift in the ice,...
Physics supports biology: Researchers from PTB have developed a model system to investigate friction phenomena with atomic precision
Friction: what you want from car brakes, otherwise rather a nuisance. In any case, it is useful to know as precisely as possible how friction phenomena arise –...
21.07.2017 | Event News
19.07.2017 | Event News
12.07.2017 | Event News
21.07.2017 | Earth Sciences
21.07.2017 | Power and Electrical Engineering
21.07.2017 | Physics and Astronomy