Advancing Economic Justice: Employment and Safety Net Approaches

Session Submission Type: Panel

Abstract

Economic justice requires that all households have access to the opportunities and resources needed to support their upward mobility and resilience. However, structural inequities limit families’ ability to equitably participate in these opportunities—and policies can help or hinder their efforts. The diverse set of papers on this panel use quantitative methodologies across consumer finance, comparative political economy, and public policy fields to explore the scope of economic justice disparities and the role of policy in addressing them.

The first paper explores the relationship between precarious employment and financial security and public benefit use among low-wage workers using nationally-representative survey data on low-income workers and probit models. They find that half of low-wage workers were precariously employed with temporary work, unpredictable scheduling, or no paid sick leave. These workers had worse financial well-being, greater challenges paying bills, and were more likely to rely on public benefits, suggesting that work precarity may shift economic risk from the private sector (via reduced labor costs) to the public sector (via increased public benefits spending).

The second paper investigates the relationship between structural racism and financial well-being across racialized groups using data from the National Financial Capability Study and indicators of structural racism. They find that higher levels of structural racism were significantly associated with lower financial well-being among participants racialized as Black while other racialized groups (Latine, White, and Asian or Pacific Islander) were not significant. These findings indicate there is a meaningful link between structural racism and financial well-being among adults racialized as Black, with the harms of anti-Black structural racism being unique in their impact.

The third paper draws on Swedish administrative data to examine the impact of equal pay laws using difference-in-difference models. They find that the introduction of equal pay legislation in Sweden resulted in a 1.2 log point increase in within-job women’s wages, relative to men that was not driven by pre-existing trends, cannot be explained by changes in intensive labor supply, and cannot be explained by other policies passed around the same time. These results suggest that equal pay laws can effectively reduce gender pay gaps, possibly over the long-term.

The final paper uses predictive machine learning models to estimate the number of individuals who are likely eligible for and would participate in SNAP if the federal ban on SNAP participation for individuals with prior drug felony convictions was repealed. They find that 360,000-380,000 people ages 18 to 60 with prior drug felonies would be eligible for SNAP benefits in 2019, receiving between $355-$376 million in SNAP benefits. These results suggest that this policy change could reach a substantial number of Americans, helping alleviate post-release material hardship challenges that contribute to recidivism.

Ensuring that all families can support their economic mobility requires refining policies to better support resilience. By examining the effects of equal pay laws, challenges of work precarity and structural racism, and the reach of public benefits eligibility, this panel provides policymakers with evidence to create efficient, fair policies that advance economic justice.

Policy Area

• Poverty and Income Policy

Secondary Policy Area

• Social Equity and Race

Chair

• Signe-Mary McKernan, Urban Institute

Discussants

• Jennie Romich, University of Washington

• Leah Hamilton, Appalachian State University

Organizer

• Kassandra Martinchek, George Washington University

Individual Presentations

• Precarious Employment, Wage Theft, and Financial Health: Evidence from a Nationally Representative Survey - Presenting Author: Stephen Patrick Roll, Washington University in St. Louis

• Structural Racism and Financial Well-Being - Presenting Author: Sicong Sun, University of California - Los Angeles

• Equal Pay Laws and the Gender Pay Gap: Evidence from Swedish Administrative Data - Presenting Author: Samuel J Mann, RAND Corporation

• Estimated Impact of Removing SNAP Benefit Ban for Those with Drug Felony Convictions - Presenting Author: Walter Campbell, Urban Institute