. 2020 Oct 25;42(Suppl 1):107–117. doi: 10.1007/s10834-020-09715-7

Table 1.

Summary of findings and suggested areas of future research on economic security among low-income families

Topic	Findings	Suggested areas of future research
Poverty dynamics	• The Economic Well-Being Continuum establishes the level of economic functioning (persistently poor, struggling, and getting by) of low-income families using their circumstances in specific dimensions of life (Mammen et al. 2015) • Family health issues and changes in mothers’ intimate relationships acted as significant trigger events that established or altered the economic functioning of the families with their hardships being mitigated by support networks (Mammen et al. 2015) • Low-income individuals expressed less financial distress and more hopefulness when locus of control was more internal to them. When able to make financial adjustments, they had more financial distress, accompanied with more hopefulness (Prawitz et al. 2013)	• What are other life circumstances and trigger events that affect changes in economic functioning of low-income families, including size and duration of its impact? • How will these changes be mitigated in vulnerable families by individual’s agency such as internal locus of control and hopefulness? • What are changes in short-term as well as long-term subjective financial well-being when financial education is introduced to low-income consumers? • Are low-income consumers motivated to continue to improve their financial behaviors if they are provided optimism and hope for a better financial future?
Effectiveness of welfare-to-work programs	• When transitioning from welfare to work, former TANF recipients were more likely to obtain employment and remain employed when they participated in labor force attachment (LFA) programs along with human capital development (HCD) programs (Kim 2010, 2012) • Successful welfare-to-work participants revealed low wages, informal labor market activity, unmet needs, and continued use of government, community, and social support (Kim 2010, 2012) • Those who had more needs met had higher earnings and regular nonmonetary help from their social network while those with fewer needs met had more young children and relied on government support programs (Davis et al. 2018; Grobe et al. 2017; Livermore et al. 2011)	• Would an expansion of educational opportunities for TANF recipients, along with modified work requirements, contribute to more successful and sustainable welfare-to-work transitions? • Do state differences and variations in TANF rules (work exemptions, sanctions, time limits, earnings disregards, family caps, time to work requirements) make significant differences in positive employment outcomes and better economic outcomes for families? • What is a realistic measure of what it means to be successful in welfare-to-work programs for women to become self-sufficient and truly meet their needs?
Employment issues	• Rural low-income mothers remained in the same job because they utilized their limited resources effectively and developed strategies to combine work and family life including using social support network and supportive supervisors as well as flextime (Son and Bauer 2010) • Low-income mothers were more likely to be employed, especially full-time, if they were provided state childcare subsidy tied to their employment (Davis et al. 2018; Grobe et al. 2017) • High level of job instability created a greater likelihood of losing the childcare subsidy (Grobe et al. 2017)	• What are the differences between low-income mothers who maintain continuous employment and those who are employed intermittently? • What are strategies to incentivize (a) employers to provide flexible work policies and (b) communities to establish community-based support system for limited-resource parents of young children? • What is the impact on employment stability when states decouple low-income parents receiving childcare subsidy and work requirements? • How is child subsidy loss related to families’ choices for childcare arrangements and how do childcare subsidy rules vary from state to state?
The earned income tax credit (EITC)	• The EITC non-participants among rural low-income women were more likely to be Hispanic, be less educated, have larger families, perceive their income as being inadequate, live in more rural counties, and possess little understanding of the EITC (Mammen et al. 2011) • Participating rural working mothers, on the other hand, were more likely to be single, food secure, and satisfied with life EITC (Mammen et al. 2011) • Periodic EITC payment recipients experienced significantly lower levels of perceived financial stress (less need to borrow money, lower levels of food insecurity, and fewer unpaid bills) compared to those who received it in a lumpsum (Kramer et al. 2019; Mammen et al. 2011)	• What are the multiplier effects of the EITC on communities, particularly rural communities? • What incentives would increase EITC program participation among eligible working poor families? • What is the optimal frequency of the EITC payments (one lumpsum, periodic payments, or monthly payments) which would reduce family financial stress and increase overall economic security?
Banking behaviors	• Unbanked low-income households were more likely to be younger, Black, unpartnered, have more children, and have less income, while they are less likely to have attended college and be employed full-time (Grinstein-Weiss et al. 2010) • Banked participants were more likely to have better saving performance in Individual Development Accounts (IDA) programs and lower risks of dropping out (Grinstein-Weiss et al. 2010) • Having an additional child increased the likelihood of female-headed households to be underbanked or unbanked compared to couples or male-headed households (Rao and Malapit 2015)	• What specific steps could increase the likelihood of low-income households’ engagement in banking activity including savings and participation in IDA programs and other mainstream financial services? • What are the demand side (opportunity cost of time to women and intimidation based on lack of banking knowledge) and supply side (institutional bias against women and the perceived need for greater monitoring of them) factors that contribute to gender disparity in banking behavior?

Topic

Findings

Suggested areas of future research

Poverty dynamics

• The Economic Well-Being Continuum establishes the level of economic functioning (persistently poor, struggling, and getting by) of low-income families using their circumstances in specific dimensions of life (Mammen et al. 2015)

• Family health issues and changes in mothers’ intimate relationships acted as significant trigger events that established or altered the economic functioning of the families with their hardships being mitigated by support networks (Mammen et al. 2015)

• Low-income individuals expressed less financial distress and more hopefulness when locus of control was more internal to them. When able to make financial adjustments, they had more financial distress, accompanied with more hopefulness (Prawitz et al. 2013)

• What are other life circumstances and trigger events that affect changes in economic functioning of low-income families, including size and duration of its impact?

• How will these changes be mitigated in vulnerable families by individual’s agency such as internal locus of control and hopefulness?

• What are changes in short-term as well as long-term subjective financial well-being when financial education is introduced to low-income consumers?

• Are low-income consumers motivated to continue to improve their financial behaviors if they are provided optimism and hope for a better financial future?

Effectiveness of welfare-to-work programs

• When transitioning from welfare to work, former TANF recipients were more likely to obtain employment and remain employed when they participated in labor force attachment (LFA) programs along with human capital development (HCD) programs (Kim 2010, 2012)

• Successful welfare-to-work participants revealed low wages, informal labor market activity, unmet needs, and continued use of government, community, and social support (Kim 2010, 2012)

• Those who had more needs met had higher earnings and regular nonmonetary help from their social network while those with fewer needs met had more young children and relied on government support programs (Davis et al. 2018; Grobe et al. 2017; Livermore et al. 2011)

• Would an expansion of educational opportunities for TANF recipients, along with modified work requirements, contribute to more successful and sustainable welfare-to-work transitions?

• Do state differences and variations in TANF rules (work exemptions, sanctions, time limits, earnings disregards, family caps, time to work requirements) make significant differences in positive employment outcomes and better economic outcomes for families?

• What is a realistic measure of what it means to be successful in welfare-to-work programs for women to become self-sufficient and truly meet their needs?

Employment issues

• Rural low-income mothers remained in the same job because they utilized their limited resources effectively and developed strategies to combine work and family life including using social support network and supportive supervisors as well as flextime (Son and Bauer 2010)

• Low-income mothers were more likely to be employed, especially full-time, if they were provided state childcare subsidy tied to their employment (Davis et al. 2018; Grobe et al. 2017)

• High level of job instability created a greater likelihood of losing the childcare subsidy (Grobe et al. 2017)

• What are the differences between low-income mothers who maintain continuous employment and those who are employed intermittently?

• What are strategies to incentivize (a) employers to provide flexible work policies and (b) communities to establish community-based support system for limited-resource parents of young children?

• What is the impact on employment stability when states decouple low-income parents receiving childcare subsidy and work requirements?

• How is child subsidy loss related to families’ choices for childcare arrangements and how do childcare subsidy rules vary from state to state?

The earned income tax credit (EITC)

• The EITC non-participants among rural low-income women were more likely to be Hispanic, be less educated, have larger families, perceive their income as being inadequate, live in more rural counties, and possess little understanding of the EITC (Mammen et al. 2011)

• Participating rural working mothers, on the other hand, were more likely to be single, food secure, and satisfied with life EITC (Mammen et al. 2011)

• Periodic EITC payment recipients experienced significantly lower levels of perceived financial stress (less need to borrow money, lower levels of food insecurity, and fewer unpaid bills) compared to those who received it in a lumpsum (Kramer et al. 2019; Mammen et al. 2011)

• What are the multiplier effects of the EITC on communities, particularly rural communities?

• What incentives would increase EITC program participation among eligible working poor families?

• What is the optimal frequency of the EITC payments (one lumpsum, periodic payments, or monthly payments) which would reduce family financial stress and increase overall economic security?

Banking behaviors

• Unbanked low-income households were more likely to be younger, Black, unpartnered, have more children, and have less income, while they are less likely to have attended college and be employed full-time (Grinstein-Weiss et al. 2010)

• Banked participants were more likely to have better saving performance in Individual Development Accounts (IDA) programs and lower risks of dropping out (Grinstein-Weiss et al. 2010)

• Having an additional child increased the likelihood of female-headed households to be underbanked or unbanked compared to couples or male-headed households (Rao and Malapit 2015)

• What specific steps could increase the likelihood of low-income households’ engagement in banking activity including savings and participation in IDA programs and other mainstream financial services?

• What are the demand side (opportunity cost of time to women and intimidation based on lack of banking knowledge) and supply side (institutional bias against women and the perceived need for greater monitoring of them) factors that contribute to gender disparity in banking behavior?