Health Conditions as a Major Barrier to Employment among Poor Families

The US government has been trying to establish a work-based welfare system to fight welfare dependency and poverty based on the fact that many poor individuals do not work or work only small number of hours. This study identifies how detrimental it is to have a family member with work-limiting health conditions and compares the prevalence of these health conditions by families' income status. It also estimates how many hours more a family can supposedly work, should the work-limiting health conditions are removed.

Using the Current Population Survey (CPS) of 2004, the study found an inverse relationship between the prevalence of work-limiting health conditions and families' income status. For example, while only around 8% of non-poor families have at least one adult with work-limiting health conditions, more than 20% of poor families have such members. When all other factors relevant to employment are held constant, families that have at least one adult with work-limiting health conditions work 1,041 hours fewer annually compared to those without a member with illness or disabilities.

The finding suggests that health is a major barrier to employment and economic security among poor populations. It also indicates that the work-first anti-poverty strategy of current government cannot succeed without addressing health problems of the poor. Further policy implications are discussed in more details.