Moving the Needle: What Tight Labor Markets Do for the Poor

In this astute and timely study, economists Newman (Downhill from Here) and Jacobs (coauthor, Who Cares?) document how economic upswings affect the lives of the working poor. Among other profile subjects, the authors spotlight Sam Conrad, who spent 20 years in and out of Massachusetts prisons before entering a postincarceration return-to-work program in 2017 and quickly working his way up to a well-paying union job. These and other stories give a human element to data suggesting that when the unemployment rate falls below average, employers are compelled to hire ex-inmates, former drug addicts, high school dropouts, immigrants, the chronically unemployed, and others who would normally be passed over. More notably, when such workers are given an initial foothold, they frequently surpass expectations; according to the authors, workers with criminal records have higher retention and lower turnover rates than the general population, despite being offered the hardest, least desirable jobs. Among other suggestions to help “consolidate” the gains impoverished families face during tight labor markets, Newman and Jacobs call for increasing the minimum wage, incentivizing employers to provide on-the-job training, and fostering tuition assistance programs. Clinical yet compassionate, this is a valuable resource for activists, scholars, and policymakers on the front lines of the battle to end poverty. (Apr.)