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This study uses ten waves of the 2004 Survey of Income and Program Participation (SIPP) data to analyze the labor market performance of the working poor. Specically, the study attempts to answer two broad questions: 1) What socio-economic characteristics are associated with vulnerability to becoming working poor? and 2) What differences, if any, exist among the working poor in terms of how long they remain employed at the bottom of the labor market? The findings suggest that the socio-economic characteristics of those who are vulnerable to becoming working poor are different from those of the rest of the labor force. Moreover, the working poor themselves constitute a very diverse group in which some members exhibit greater ability to increase their relative earnings. This implies that a one-size-fits-all approach may be ineffective in designing policies to aide those employed at the bottom of the labor market.
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