What does working poor mean?

Working but still too poor to support the household.

Why does it vary by country?

Institutions like minimum wages, unions and welfare spending differ.

Working Poor

🤝 Social Welfare By CampusDown Wiki Editorial Team Last updated October 27, 2026

The working poor are people who are employed yet live in households below the poverty line. Low hourly pay, short or unstable hours and household composition combine to produce in-work poverty, showing that work alone does not guarantee escape from poverty.

Contents

1. Concept and measurement
2. Causes
3. Welfare states and policy
4. FAQ
5. References

Concept and measurement

Shipler (2004) popularised the issue. Crettaz (2013) notes the usual definition: working most of the year with household income under 60% of the median, a relative poverty line.

Causes

Low wages, low work intensity and many dependants combine, alongside dual labour markets; Halleröd and colleagues (2015) link unstable trajectories to risk.

Welfare states and policy

Brady and colleagues (2010) and Lohmann (2009) find institutions matter most. Policies include minimum wages and the EITC, which raised single mothers' employment (Eissa & Liebman, 1996), linked to workfare.

FAQ

What does working poor mean?: Working but still too poor to support the household.
Why does it vary by country?: Institutions like minimum wages, unions and welfare spending differ.

Sources reviewed: 2026-10-26

References

Shipler, D. K. (2004). The working poor: Invisible in America. Alfred A. Knopf. Portrait of US working poor.
Andreß, H.-J., & Lohmann, H. (Eds.). (2008). The working poor in Europe: Employment, poverty and globalization. Edward Elgar. European comparison.
Lohmann, H. (2009). Welfare states, labour market institutions and the working poor: A comparative analysis of 20 European countries. European Sociological Review, 25(4), 489–504. Institutions and in-work poverty.
Brady, D., Fullerton, A. S., & Moren Cross, J. (2010). More than just nickels and dimes: A cross-national analysis of working poverty in affluent democracies. Social Problems, 57(4), 559–585. Cross-national analysis.
Crettaz, E. (2013). A state-of-the-art review of working poverty in advanced economies: Theoretical models, measurement issues and risk groups. Journal of European Social Policy, 23(4), 347–362. Review of measurement.
Halleröd, B., Ekbrand, H., & Bengtsson, M. (2015). In-work poverty and labour market trajectories: Poverty risks among the working population in 22 European countries. Journal of European Social Policy, 25(5), 473–488. Labour-market trajectories.
Eissa, N., & Liebman, J. B. (1996). Labor supply response to the earned income tax credit. Quarterly Journal of Economics, 111(2), 605–637. EITC evidence.

Reports and materials that use this theory (Korean)

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This article was last updated on October 27, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.