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2181. The Challenge of Achieving High Work Participation Rates in Welfare Programs

Author:
LaDonna Pavetti
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Efforts to reform the welfare system over the last two decades have largely focused on reducing welfare dependency by getting welfare recipients to work. By the time the Temporary Assistance for Needy Families (TANF) program was created by the welfare reform law of 1996, there was widespread agreement in the states that welfare recipients should be required to look for work and to do so shortly after (or even before) they began receiving cash assistance. Once TANF was implemented, work became a central focus of local welfare offices. However, as shown by the recent debates on the reauthorization, consensus on work requirements remains elusive.
Topic:
Economics, Government, Human Welfare, and Poverty

2182. Offshoring, Import Competition, and the Jobless Recovery

Author:
Charles L. Schultze
Publication Date:
08-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Until the end of 2003, the United States had been experiencing a “jobless” recovery, with employment stagnating at levels well below those in 2000. A widespread perception has arisen that a major culprit behind the dearth of jobs was the growing practice of U.S. firms to relocate part of their domestic operations to lower-wage countries abroad. “Offshoring” presumably caused a reduction in U.S. output and a corresponding loss of jobs.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States

2183. Improving the Saver's Credit

Author:
William G. Gale and Peter R. Orszag
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
For decades, the U.S. private pension system has provided preferential tax treatment to employer-provided pensions, 401(k) plans, and individual retirement accounts relative to other forms of saving. The effectiveness of this system of subsidies is controversial. Despite the accumulation of vast amounts of wealth in pension accounts, concerns persist about the ability of the pension system to raise private and national saving, and in particular to improve saving outcomes among those households most in danger of inadequately preparing for retirement.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States

2184. Bush and Kerry: Questions About Governing Styles

Author:
Charles O. Jones
Publication Date:
06-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Political campaigns are about governing. Candidates offer themselves to the public and endure a grueling process of nomination and election. Campaigns generate a lot of headlines, but it's what comes afterward that counts. Voters usually are left guessing about how each of the candidates would govern. In 2000, the Brookings Institution, the American Enterprise Institute, and the Hoover Institution jointly conducted several forums with journalists and the presidential candidates' close associates that explored how each of the candidates would govern based on their backgrounds, experience, and leadership styles.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
America

2185. Encouraging Job Advancement Among Low-Wage Workers: A New Approach

Author:
Harry J. Holzer
Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
While their employment rates have risen considerably, most former welfare recipients continue to earn very low wages. Similarly, the earnings of less-educated U.S. workers more broadly have also stagnated or fallen in recent years. Using a new dataset from the Census Bureau, some recent research suggests that low earners' advancement prospects are closely tied to the characteristics of the employers for whom they work. Employment in certain high-wage sectors and especially at firms that pay wage premiums and offer career ladders is strongly correlated with earnings gains over time for initially low earners. Job mobility often results in higher earnings gains than does staying in the same job. "Work first" approaches—such as immediate job placement for those on welfare—produce modest gains over time, while early work at a higher-wage employer or with a temp agency generates larger gains. Policymakers should therefore encourage better job placements for low earners as well as targeted training that is integrated with these placements. Policies to support the creation of more higher-wage jobs for the unskilled should be considered as well. Private labor market intermediaries can play important roles in both processes.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States

2186. Trade Agreements and Labor Standards

Author:
Theodore H. Moran
Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The National Academy of Sciences report, Monitoring International Labor Standards: Techniques and Sources of Information, shows that assessing compliance can be done thoroughly and transparently, allowing government officials, multilateral agencies, "socially responsible" investors, and nongovernmental organizations to identify where they differ on crucial aspects of the assessment process.
Topic:
International Relations, Foreign Policy, Government, and Political Economy

2187. "Offshoring" Service Jobs: Bane or Boon and What to Do?

Author:
Lael Brainard and Robert E. Litan
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Americans worry the economy is permanently shedding jobs and compressing wages, not only in manufacturing but also now in services once assumed immune to foreign competition. The digitization of information and expanded bandwidth abroad are enabling companies to outsource to low-wage countries services ranging from routine call center work to higher-value software programming, medical diagnosis, and research and analytical activities.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
America

2188. Global Economic Governance at a Crossroads: Replacing the G-7 with the G-20

Author:
Johannes F. Linn and Colin I. Jr. Bradford
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Finance ministers representing the Group of 7 (G-7) industrialized countries met in Boca Raton, Florida, in early February amid concerns about the weakening of the U.S. dollar. One factor in the dollar's decline is the U.S. trade deficit, which is partly due to the undervalued Chinese yuan. The involvement of China, which is not a G-7 member, illustrates both the glaring gap in global governance and the increasing economic and policy interdependence between industrial countries and major emerging market economies (EMEs). As one observer, referring to the Boca Raton meeting, put it, "China is the 800-pound gorilla and it isn't even part of the negotiations."
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States and China

2189. How to Balance the Budget

Author:
Isabel V. Sawhi and Alice M. Rivlin
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The federal government is spending about $500 billion a year more than it is raising in taxes. If nothing is done, that gap will widen to around $700 billion annually by 2014 and accelerate rapidly thereafter, as baby boomers begin to retire. Persistent deficits of this magnitude are likely to lower standards of living, make us dangerously dependent on the rest of the world, and pass on large fiscal burdens to future generations. Balancing the budget, while politically difficult, must be a priority. In an effort to stimulate debate over a compromise that would appeal to different groups, we present three ways to achieve balance over the next ten years. One option emphasizes spending cuts and leads to a smaller government. A second relies on tax increases and leads to bigger government. The third maintains government's current size, but makes it more effective, and contains a mix of spending reductions and tax increases, sufficient to achieve balance in ten years while preserving room for some high-priority new initiatives.
Topic:
International Relations, Foreign Policy, Government, and Political Economy

2190. The Insurance Industry in America

Author:
Robert E. Litan and Richard J. Herring
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Economists and insurance experts have studied the industry for many years and have developed a series of theoretical concepts to explain how insurance markets function. The prevailing view of the demand for insurance was summed up by one conference participant who noted that an economically rational consumer would understand that apart from certain tax benefits, when you buy insurance, you're making a bet with an insurance company, which the insurance comp any wins on average because it must cover administrative costs and earn a competitive return for its shareholders. From this perspective it makes sense to insure only against potential losses so large as to affect your standard of living. But that is not always how consumers behave.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
America