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Clinton Presidential Records
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This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a publication.
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64
[The Forgotten Half Revisited]
The
FORGOTTEN
Revisited
AMERICAN YOUTH AND
YOUNG FAMILIES,
1988-2008
SAMUEL HALPERIN, EDITOR
AMERICAN YOUTH
POLICY FORUM
Nicole/Shiley- -
How do these figure
Square with the
"Frigotten Hay"
analys is that
Claims lither
no income progress
for low In lovel
direction worken?
HRC
Pam-
free report
but are Nicole
+ Shreey to
analyze my
question for me.
PHOTOCOPY
HRC HANDWRITING
MEMORANDUM FOR HILLARY RODHAM CLINTON
FROM:
Shirley Sagwa and Nicole Rabner
RE:
Discrepancies between The Forgotten Half and the Council of Economic Adviors
EITC and Minimum Wage Report
DATE:
January 27, 1999
You asked us to analyze why The Forgotten Half Revisited (TFH) and the CEA Reports paint
such different pictures of the economic status of low income Americans. The short answer is
that the two used different time frames and different segments of the populations for their
analysis.
TFH looks at the circumstances of less-educated young people (18 to 24), comparing 1996 data
with 1988 or, in some cases, 1973 data. The CEA looks at the effect of minimum wage and
EITC on low-wage workers of all ages and levels of education, with an emphasis on families
(note, for example, that many 18 to 24 year olds do not have children and therefore do not
qualify for EITC). CEA uses as its baseline 1993, with particular emphasis on the dramatic
improvements that occurred between 1996 and 1998 -- a period in large part not examined by
TFH.
One other distinction worth noting: TFH looks more broadly at the quality of jobs young people
have (health insurance availability, opportunity for advancement, etc.), while CEA looks only at
labor force participation and family income.
The attached memo by MaryEllen McGuire provides more detail on the differences between the
two reports.
copy for
reclame
nicole
neera
send L HCC
To:
Shirley Sagawa
From: MaryEllen McGuire
Re:
Discrepancies between The Forgotten Half and The Council of Economic Advisors
EITC and Minimum Wage Report
Date: January 10, 1998
To reconcile what appear to be discrepancies in the economic and social reporting of The Forgotten
Half (TFH) and The Council of Economic Advisors EITC and Minimum Wage Report (CEA
Report), consider each reports' intended emphasis, target population, and the time span they
consider. When we look at these factors together, the two reports are rarely, if at all, at odds.
Differences in Focus:
The objective of TFH was to explore the educational, political, social and economic plight of our
less educated youth, those 18-24 year olds who have not attended college and some of whom
dropped out of high school. The objective of the CEA Report was to highlight the efforts of two
very specific government programs on low wage American families, namely the Earned Income
Tax Credit (EITC) and the minimum wage hike. The CEA report gives no special attention to the
age of its' heads of households and does not on the surface appear to make reference to levels of
education. One could however make the case that educational attainment is being considered in the
CEA Report, as the majority of Americans in low income households are headed by adults with
lower levels of education.
In addition, the two reports use different time spans: TFH charts young adults' progress over the
past ten years, while the CEA report covers the period from 1993-1998, with particular emphasis
on 1996 to the present. When one puts all three of these differences into a larger context- report
objectives/ intended focus, target population and time span covered- what appear to be
discrepancies among the reports are actually complementary pieces of information.
Issue of Unemployment/ Quality of Work
When you consider different populations examined, it makes sense that individuals considered to
be part of TFH are doing less well than American families overall. Mountains of evidence, and
even the CEA Report, demonstrate that in an increasingly educated and specialized workforce,
those with only a high school diploma or less are at a great disadvantage for obtaining and
maintaining employment that accords an acceptable standard of living.
TFH asserts that those who don't go on to college, and especially high school drop outs, are more
likely to experience periods of unemployment. CEA agrees. According to CEA figures, while
unemployment sits currently at 4.4%, the lowest rate since 1969, individuals with less than a high
school diploma experience unemployment at a higher rate of 7.2%. CEA would point out however,
that this 7.3% level is an improvement over 11.1% in 1993.
One cohort that has not seen an improvement in its levels of employment, and has seen a 3% rise in
unemployment (to 11%), is that of males 16-24. CEA does not examine this group as a separate
entity, partly because they only look at American families and most males 16-24 would not qualify
as heads of households.
TFH, unlike the CEA Report, also pays special attention to the nature and quality of employment;
whether an earner is working one full time job or several part time jobs, and whether or not a
worker is being afforded health insurance. CEA does not appear to consider how a 40 hour work
week is constituted and does not consider the issue of insurance. It does however pay special
attention to the number of people, especially children, that are being lifted out of poverty by the
EITC and minimum hike wage. TFH is focused not so much on the poverty line but on broader
issues and better quality of life.
One fact that both reports celebrate is that more single mothers are participating in today's
workforce. The CEA report attributes this to the fact that through the EITC and minimum wage
hike, the Administration is making work pay. TFH mentions the EITC as an admirable government
credit with the single highest participation rate of any anti poverty program. It does not speak of
the EITC in any depth.
The Wage Issue
The CEA Report speaks very highly of a 4.4% growth in median wages from 1996 to 1998 for low
income wage earners and attributes a great deal of this growth to the 9% hike in the minimum wage
which it estimates has affected 46% of low income households. While TFH may not disagree with
this, it is their point that despite significant gains over the past few years, real weekly earnings are
still down $128 since 1973, and while young families are recouping in the 90's from the wage
losses of the 80's, they are still earning quite a bit less than their peers just one generation earlier--
with high school graduates experiencing the greatest loss in purchasing power.
Poverty Rates
The CEA Report pays special attention to poverty rates and the effect the EITC appears to have had
on them. TFH notes that poverty rates are down from 1996, but still up from the 1980's. It
negatively reports that high school drop outs are much more likely to be poor than high school or
college graduates and positively reports that single mothers are more likely to be employed and
earn higher wages than before [which the CEA Report attributes to the EITC and minimum wage
hike].
Conclusion
The CEA Report emphasizes that Administration policies, especially as they relate to the EITC and
minimum wage hikes, have played a key role in the employment and wage gains over the past two
years. I do not think that TFH would disagree. TFH would note however, that young people with
the lowest levels of education are experiencing unemployment at much higher rates than any other
cohort, and that real wages are still lower than they were a generation earlier. TFH would not
dispute the CEA that gains have been made, but would like to see that these gains are extended
further.
The Council of Economic Advisors
The Forgotten Half
Comparison
Report
(TFH)
(CEA Report)
Report Focus
The CEA Report focuses on the effects of two
TFH focuses on the educational, political, social and
-CEA report focuses on the effects of two
very specific government programs, the Earned
economic plight of the nearly 10 million Americans,
government programs
Income Tax Credit and the minimum wage hike
aged 18-24 years old, who do not go on to college
-TFH is wider in scope looking at the
on American families, particularly low income
after high school [and who may not have even
educational, political, social and economic
families.
finished high school].
plight of our young people
Population Focus
Low income families.
A particular age cohort of particular educational
-CEA report focuses on families with no
attainment: 18-24 year olds with no college and/or
particular age given emphasis
no high school diploma- about 40% of young people.
-TFH focuses on 18-24 year olds, and at times
16-24 year olds
-TFH pays close attention to educational
attainment
-the fact that the CEA Report examines the
plight of low income families suggests attention
to those with less education as low income
families are likely to be headed by adults with
lower levels of education
Time Span
1993-1998, particularly the last two years
The last ten years, 1989-1999
-TFH looks at a much broader time span
including time spent outside this Administration
General Message
Low income families are doing much better today
Today's young adults without a college degree are
-Not in opposition
than they were just two years ago (1996).
having a much harder transition into adulthood than
-TFH does seem to agree that there have been
their college educated peers. Lack of higher
overall unemployment and wage improvements
education continues to be a barrier to economic
over the past two years but compared to the
opportunity.
larger picture, the past ten years, we have still
not recouped, especially where are young people
are concerned
Thoughts on
The labor market is in great shape and continues
Focusing exclusively on the 18-24 year old cohort:
-both would agree that unemployment is down
Unemployment
to perform at record pace.
-those who don't go on to college, and especially
overall
-Unemployment in '98 was only 4.4%, the lowest
high school drop outs, are more likely to experience
-fact is young people with less education still
rate since '69
periods of unemployment and rely on PT work for
find work less
-agrees that the employment outlook is not as
more years
-point is when finding work AGE is a significant
good for the less educated but is improved since
-young males are less likely to make a single
variable, as is level of education
'93
transition to the work force
no high school degree: '93 unemployment 11.1%
-in '97 only 56.3% of 16-24 year olds find FT work,
'97 unemployment 7.2%
3% less than '89
high school only:
'93 unemployment 6.6%
-FT work highly correlates to education
'97 unemployment 3.9%
dropouts 34.9%, high school 60%, BAs 82.3%
-more single moms are in the workforce
-Top 40% of families enjoy rising income, most
in '92 -73.7% at work, in '97- 84.2% at work
others stagnant or earn less
-unemployment overall is down
Thoughts on Wage
-from '96 to '98 there has been a 4.4% gain in
-TFH are experiencing less permanent wage growth
-remember that CEA makes no age distinctions,
Growth
median wages, especially among low income
-real weekly earnings are down '73 to '98 from
refers mostly to wage hikes over the last two
earners
$463 to $335
years due to the minimum wage jump, and is
-there has been a substantial increase in minimum
-earners are however at their highest levels in the
only comparing '96 to '98 without looking at
wage since '96 ($4.25 to $5.15)
90s, with '98 showing the best performance in 20
how this admitted jump compares to ten years
-from '93 to '97 the minimum wage rose 9%
years
ago
with an estimated 10 million people benefitting
-BUT, inflation adjusted earnings are still 1.3 less
-both agree real earnings are not where they
-46% of those benefitting worked full time
than a generation earlier, 24 years ago
were a generation ago
-most benefitting are low income workers
-in '97 under 25's earned 51.5% of over 25's
-both agree there has been wage improvement
-BUT, real value of hike is still less than wages
-young families are recouping in the 90s but still
recently
earned in '84/'85
below what young families made 24 years ago
-overall wages up
- high schools grads are losing the most purchasing
power
-families led by those with four year degrees did
better, but even they earned less
Poverty Rates/
-in 1997, the EITC reduced the number of
-Poverty rates in '96 down 2% from '92 but still up
-looking at entirely different time spans
Poverty Rates for
children living in poverty by 2.2 mill
from 21% in '80s
-poverty is getting better but still higher than a
Children
-over half of the decline in poverty from '93 to
-1/4 young families live in poverty
decade earlier
'97 can be explained by changes in taxes, most
-high school dropouts are more likely to be poor:
-both agree with strides in single mothers'
importantly the EITC
64% of poor are dropouts, 34% have only high
condition
school degrees, 7% have BA's
-poverty rates are higher in '96 than '89 except for
four year degree holders
-Except for children living in families headed by 4
year college grads, poverty rates for children were
higher in '97 than '89
-kids in single mother families are most likely to be
poor but these moms are doing better, more likely to
be employed and earn higher wages now
EITC
-Administration's polices have played a key role
-recognizes the EITC as a good safely net, as the
-both agree the EITC is pulling people out of
in unemployment/ wage gains
government program that helped the poor the most
poverty
-the Administration made work pay through the
-lifted 2.4 mill kids out of poverty in '96, 37.3% of
-TFH does not look at the EITC in depth
EITC and minimum wage hike
the poor kids
-in '97 the EITC raised 4.3 million out of
-EITC provides a powerful work incentive
poverty, more than double the '93 rate
-EITC has the highest participation rate of any anti
-The EITC supplemented the incomes of low
poverty program: 81-86%
wage working parents
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
December 4, 1998
REMARKS BY THE PRESIDENT
AT INCOME TAX CREDIT EVENT
The Roosevelt Room
10:12 A.M. EST
THE PRESIDENT: Amy's children are over there. And we also have
Bernadette Hockaday and her children, and Rhonda Clarke and her children here.
They're all here, and we thank them all for coming because they all have
benefitted from the Earned Income Tax Credit.
I'd like to thank Gene Sperling, who believed passionately in this when
I first met him, well over six years ago now; Janet Yellen, the Council of
Economic Advisors; Secretary Herman, who was here in the White House helping us
to implement the Earned Income Tax Credit in '93. I thank Congressman John
Lewis and Congressman Bob Matsui, who are here who have been passionate
advocates; and all the other advocates in the room here -- Bob Greenstein,
Justin Dart, the others who are here -- we thank you for your support.
One of the main reasons that I ran for President in 1992 was that I
believed that people like Amy could achieve real success if we could unstack the
deck against them. I knew that when our nation was taxing working families into
poverty, that was wrong. I knew that when a mother rises at dawn, putting in an
honest day's work and still can't afford to buy the children's clothes, that's
wrong. And I was determined to try to do something about it.
I also knew that there was a little-known provision in the tax code
which had been in for several years called the Earned Income Tax Credit that had
the potential if it were actually expanded at an appropriate level to lift all
working families out of poverty. And that's how all this started.
Again, let me say, I'm very grateful for everybody who has supported
this. I think the important -- one important thing I'd like to point out is
that we have representatives here from the AFL-CIO, from AFSCME, from other
unions, most of whose members do not get the Earned Income Tax Credit, and they
lobbied for it, too, because they thought it was right. And so, for all of you,
I just say I'm very grateful.
What we tried to do in 1993 was two things. First of all, we had to get
the economy moving again, and secondly, we had to focus on the special needs of
people who were working hard at lower wage levels. But first things first -- we
had to get the whole economy moving again. Middle-class incomes have been
stagnant for 20 years, and we could never have given lower-income working people
the chance to raise their incomes if it hadn't been for a policy promoting
overall economic growth.
Just this morning, we received more good news for America's families on
our overall economic policies. Secretary Herman's Department reports that, last
month, unemployment fell to 4.4 percent, while inflation remains low and stable.
But for a year and a half, the unemployment rate has remained below 5 percent, for the
first time in 28 years. And in November, the economy added more than a quarter
of a million jobs, which means now America has created about 17.3 million jobs
in the last six years. That is a very good record, of which the American people
can be very proud.
But let's go back to the main point. Even with all those new jobs,
under the present circumstances, the way the economy works, millions and
millions of those people would be working full-time and still be living in
poverty. So what I wanted to do in 1993 was to create new incentives to help
people climb the economic ladder and reach true independence; to enable people
to succeed at work and at home, in raising their children.
So we got the dramatic increase in the Earned Income Tax Credit into the
budget in 1993. And two years ago we fought for and won a substantial increase
in the minimum wage, which I still believe we ought to increase again.
Unemployment and inflation are low, and it still has not recovered its levels of
20 or 25 years ago, in real-dollar terms.
Today, we release a report prepared by the Council of Economic Advisors.
It shows that the Earned Income Tax Credit, as a family tax cut, has been a
major factor in encouraging work among single mothers, which you heard Amy talk
about. It has also been responsible for much of our strong progress in reducing
child poverty. In fact, the report shows that, of the 4.3 million people who
have been lifted out of poverty since 1993 by the Earned Income Tax Credit, over
half of them -- well over half of them have been lifted out because we
basically doubled the program in 1993.
And, again, I want to say to Bob Matsui and John Lewis, we had -- it was
hard to raise the money to pay for that doubling and there were a lot of people,
even in our party, who were afraid to do it -- and with some good reason, as it
turned out. But it was the right thing to do, and I hope it is something that
all of you will always be proud of.
Now, since 1993, families with two children and one parent working
full-time at the minimum wage, therefore, have seen their incomes rise by more
than $2,700 because of the increase in the minimum wage and the Earned Income
Tax Credit. This has strengthened families, it strengthened communities. It's
helped to restore our compact of mutual responsibility that people who work hard
and play by the rules ought to have a chance to be rewarded for it. And, again,
it helps us to promote both the values of family and work.
So I feel very, very good about this. And I feel great about the
overall economic news this morning. But let me also say to all of you, this is
not a time for self-congratulation or a time to rest. We have more to do here
at home and more to do to stabilize the global economy, if we expect economic
growth to continue.
We all know about the economic troubles in Asia; we all see sectors of
America's steel industry being overwhelmed by imports at fire-sale prices. We
have all read the headlines about Boeing's layoffs because of the inability of
Asian airlines to pay for planes which they have already ordered. We see other
problems in the global economy as well, and we are working hard to reverse the
problems in Asia, to limit their reach, to stabilize the long-term system under
which so many Americans and so many hundreds of millions of people around the
world have benefitted. But it is a sobering thought to remind us that we
have to continue to work on this.
Finally, let me say, we have to continue to work on the conditions of working
families here at home. Many people still cannot get affordable child care. The minimum
wage should still be raised. We still have a great deal to do to stabilize the conditions of
/
working families and to genuinely reward work in this country.
In the last session of Congress we passed an expansion of our
empowerment agenda to try to bring more jobs, more incomes, more investments
into poor inner-city and rural areas: we still have a great deal to do there.
So as you leave here today and you think about Amy and these other two
fine mothers and these beautiful children who are here, and the millions and
millions of people whom they represent all across America, I hope you will
always be proud of what you have done. But remember, this economy still is not
working for everyone, and it is still living in a very turbulent international
environment. So I ask you also to continue to support our efforts to deal with
the challenges that still have to be met to keep the growth going, and to make
sure that what we do here, so far from the lives of most Americans, actually
helps them to make those lives better.
Thank you very much and God bless you all. Thank you, Congressman
Rangel. It's good to see you. (Applause.)
END
10:24 A.M. EST
GOOD NEWS FOR Low INCOME FAMILIES:
EXPANSIONS IN THE EARNED INCOME TAX CREDIT AND THE MINIMUM WAGE
December 1998
A report by
The Council of Economic Advisers
EXECUTIVE SUMMARY
The strongest labor market in a generation has resulted in particularly large gains among
low-wage and disadvantaged workers. From 1979 to 1993, the real wages of low-wage
workers fell sharply. Recently, however, low-wage workers have experienced large
increases in real wages: For low-wage men, wages are up since 1996 by 5.7 percent after
inflation. And for low-wage women, real wages have risen 6.1 percent.
These strong wage gains have been accompanied by a steep decline in unemployment for
low-skilled workers. In 1993, 11.1 percent of workers without a high school degree were
unemployed; today that rate has fallen to 7.2 percent. Among high school graduates (with
no college), the rate has fallen from 6.6 to 3.9 percent. Low-wage workers are thus
gaining both by working more and by earning more for every hour that they work.
The effects of a strong economy have been reinforced by successful policies designed to
make work pay. Expansions in the Earned Income Tax Credit (EITC) since 1993 are
supplementing the incomes of low-wage working parents. The EITC is one of our most
successful programs for fighting poverty and encouraging work:
Lifts more than 4 million Americans out of poverty. The EITC lifted 4.3 million
Americans out of poverty in 1997 -- more than double the number in 1993.
Dramatically reduces child poverty. In 1997, the EITC reduced the number of children
living in poverty by 2.2 million. This report finds that over half of the decline in child
poverty between 1993 and 1997 can be explained by changes in taxes, most importantly
the EITC.
Encourages work among single women with children. In 1992, 73.7 percent of single
women with children were in the labor force. In 1997, 84.2 percent of such women were
in the labor force. The percentage of single women with children who received welfare
and did not work has been cut by more than half -- from 19.3 percent in 1992 to 8.3
percent in 1997. Research studies suggest that the increase in labor force participation
among single mothers is strongly linked to the expansion in the EITC.
Increases in the minimum wage have been important in raising the earnings of low-wage
workers. Empirical research suggests that recent minimum wage increases have had little
or no adverse effect on employment.
The combined effects of the minimum wage and the EITC have dramatically increased the
returns to work for families with children. Between 1993 and 1997, families with one
child and one earner who worked full-time at the minimum wage (i.e., $4.72 in 1993 and
$5.15 in 1997, in 1997 dollars) experienced a 14 percent -- $1,402 -- increase in their
income, after inflation, just because of these two policies alone. Similar families with two
children experienced a 27 percent -- $2,761 -- increase in their income.
GOOD NEWS FOR Low INCOME FAMILIES:
EXPANSIONS IN THE EARNED INCOME TAX CREDIT AND THE MINIMUM WAGE
1. The Labor Market Continues to Perform at a Record Pace
American workers are currently benefiting from the strongest labor market in a generation.
Employment is at an all-time high, with 132 million Americans at work in November 1998, up
from 119 million in January of 1993. Only 4.4 percent of the labor force is unemployed, having
fallen by 2.9 percentage points since this Administration took office; the unemployment rate is
now at its lowest level since 1969. Moreover, wages of workers are up sharply in the past several
years, with a gain in median wages (after inflation) of 4.4 percent from 1996 through August of
this year. As this report indicates, these gains are particularly strong among low-wage and
disadvantaged workers, following more than a decade of labor market losses. Administration
policies have been important in helping those at the bottom end of the labor market begin to catch
up and share in the overall economic growth of the 1990s.
2. Low-Wage and Disadvantaged Workers are Making Particularly Large Gains
Low-wage and disadvantaged workers have experienced substantial gains in wages and
employment. The real wages of low-wage male workers have shown large increases in the past
few years, in contrast to the period from 1979 to 1993, when they declined by 14.7 percent. (We
define low-wage as those workers at the bottom decile of the wage distribution.) Among low-
wage women, the decline was 15.8 percent over this period. Charts 1 and 2 show recent
significant improvements in real wages among all workers, but with particularly large gains among
the lowest paid. Since 1996, men in the bottom decile have increased their earnings by 5.7
percent after inflation (Chart 1), while women have gained 6.1 percent (Chart 2).
At the same time, unemployment rates among the least skilled have plummeted. When
this Administration took office in 1993, 11.1 percent of workers without a high school degree
were unemployed; today that rate has fallen to 7.2 percent. Among high school graduates (with
no college), the rate has fallen from 6.6 to 3.9 percent. Hence, low-wage workers are working
more and earning more for every hour that they work.
Chart 1: Hourly Wages of Men Aged 16 and Over
Chart 2: Hourly Wages of Women Aged 16 and Over
16
16
14
50th decile (median)
14
Hourly wages (1997 dollars)
12
10
20th declie
8
Hourly wages (1997 dollars)
12
10
50th decile (median)
8
10th decile
20th decile
6
6
10th decle
4
1979
1982
1985
1988
1991
1994
1997
4
1979
1982
1985
1988
1991
1994
1997
Note: 1998 figure is the January through August average.
1
Note: 1998 figure is the January through August average.
One group in particular -- single mothers -- has also experienced significant increases in
labor force participation during this time period. Labor force participation rates among single
mothers began to climb in 1993 after remaining essentially unchanged at 74 percent since 1984.
By 1997, 84 percent of single mothers were in the labor force, a marked change for a group that
has traditionally had extremely high rates of poverty and welfare usage.
3. Administration Policies Have Played a Key Role in These Gains
The strong overall economy has been an important factor in increasing the wages and
employment of less-skilled workers. Typically, employment among workers with less education is
more sensitive to changes in the economy, with larger gains in recoveries and larger losses in
downturns. This Administration has worked hard to maintain an environment in which economic
growth can flourish and American businesses can compete fairly, both at home and abroad.
However, the strong economy is not the only reason for these gains among less skilled workers.
Administration policies to "make work pay" by expanding the Earned Income Tax Credit and
raising the minimum wage have also been important.
3.1 Expanding the Earned Income Tax Credit
Description of the EITC
The goals of the Earned Income Tax Credit (EITC) are to make work pay, to help ensure
that working parents do not have to raise their children in poverty, and to offset the total tax
burden of low and moderate income working families. As a result, the EITC eases the transition
from welfare to work. To achieve these goals, the EITC consists of a refundable tax credit for
working families with low incomes that offsets a family's total tax burden. Because the credit is
refundable, individuals can receive the full amount to which they are entitled even if the amount
exceeds the individual income taxes they owe. About 80 percent of EITC payments offset
individual income, social security, and other Federal taxes borne by families receiving the credit.
Only families that work are eligible for the tax credit, and the amount of the credit depends
on a family's labor market earnings. In 1998, for every dollar a low-income worker earns up to
an established limit, as much as 40 cents is added to compensation in the form of a tax credit. In
particular, the amount of the credit rises with earnings up to a maximum credit of $2,271 for a
family with one child and $3,756 for a family with two or more children. The credit is flat for a
range of earnings and then is phased out.
2
The EITC was significantly expanded in
Chart 3: The Earned Income Tax Credit in 1993 and 1998
the Omnibus Budget Reconciliation Acts (OBRA)
4,000
of 1990 and 1993. As a consequence of these
expansions, the EITC now provides a greater
1998
3,000
incentive for labor force participation than in
Credit amount (1997 dollars)
1993. In 1993, very low-income parents receive
an additional 19 to 20 cents for each additional
2,000
dollar earned. In 1998, a very low income parent
1993
with one child will receive 34 cents for additional
1,000
earnings; if he or she has two children, the EITC
will add 40 cents to their take-home pay (Chart 3).
0
5,000
10,000
15,000
20,000
25,000
30,000
OBRA 1993 significantly increased the
Earnings
credit for families with two or more children. The
Note: Credit amount depicted is for a family with two or more children
maximum credit was increased by over $1,500
(1998 dollars), while eligibility for the credit was
extended to families with incomes up to $30,050 (or about $3,600 above the prior law level). In
addition, the 1993 expansion helped lower taxes for 15 million working families in 1996.
About 19.7 million workers are expected to claim the EITC in tax year 1998, receiving an
average credit of $1,547. About 16.5 million of these claims will be for workers living with
children, who will receive an average credit of $1,807.
The EITC is a non-bureaucratic way to reward work effort. There are no middlemen
service providers, no long lines at government offices, and there is no need to take time off from
work to apply for the credit. Working families apply directly to the Internal Revenue Service for
the EITC and generally receive the credit as part of their tax refund.
Participation in the EITC
While the EITC offers a substantial incentive to work and move out of poverty, the credit
is effective if low-income families apply for it. A relatively high fraction of families eligible for
the EITC 81 to 86 percent in 1990 -- have claimed the credit. 1 The participation rate has been
substantially higher than those for other antipoverty programs, including AFDC (62 to 72 percent
in 1986/87), and Food Stamps (54 to 66 percent in 1986/87).²
'Scholz, J.K. (1994). "The Earned Income Tax Credit: Participation, Compliance, and
Antipoverty Effectiveness." National Tax Journal, 59-81.
²Blank, R. and P. Ruggles (1996). "When Do Women Use AFDC and Food Stamps? The
Dynamics of Eligibility VS. Participation." Journal of Human Resources, 57-89.
3
The EITC has reduced poverty
Chart 4: Number of People Removed from Poverty
The EITC is targeted to families living in
by the EITC
poverty with the goal of lifting their income above
5
the poverty line. As shown in Chart 4, the latest
4.3
4.3
estimate from the Census Bureau shows that the
4
3.7
EITC removed 4.3 million persons from poverty in
3.1
1997, which is more than double the number who
were removed from poverty in 1993.
Millions of persons
3
2.1
Over half of the people removed from
2
poverty by the EITC (2.2 million) were children
under the age of 18, and 1.8 million were living in
1
families headed by unmarried women. Updating
analyses reported in the 1998 Economic Report of
0
1993
1994
1995
1996
1997
the President, it is found that over half of the
decline in child poverty between 1993 and 1997 can be explained by changes in taxes, most
importantly the EITC (Table 1). In addition, the EITC removed about 1.1 million African-
Americans and nearly 1.2 million persons of Hispanic origin from poverty in 1997. It is clear that
the EITC has become a major weapon in our fight against poverty.
The EITC has increased the labor force participation of single mothers
Between 1993 and 1997, the real value of the maximum EITC payment increased by 38
percent for single mothers with one child and by 116 percent for single mothers with two or more
children.³ These increases coincided with the period when the proportion of single mothers in the
labor force increased dramatically, from 73.7 percent in 1992 to 84.2 percent in 1997.
In contrast, the labor force participation of single women without children -- who became
eligible for a very small credit in 1994 if their earnings were very low -- did not change over this
period (Chart 5). As Chart 6 indicates, the difference in the labor force participation rates of
single women with and without children has closely tracked the growth in maximum EITC
Chart 6: Maximum EITC and Difference in Labor Force
Participation Between Single Women With and Without Children
Chart 5: Labor Force Participation Rates of Single Women
With and Without Children
3,500
-8
100
3,000
-10
Single women
-12
without children
2,500
Labor force participation rate (percent)
90
Maximum EITC (1997 dollars)
-14
2,000
-16
1,500
Maximum EITC
80
(left axis)
-18
Percentage points
1,000
-20
Single women
Labor force participation
70
with children
500
difference (right axis)
-22
0
-24
1984
1986
1988
1990
1992
1994
1996
60
1984
1986
1988
1990
1992
1994
1996
Note: After 1990, the maximum EITC is the average of the maximum for
taxpayers with one child and with more than one child
³The same numbers apply to two-parent families.
4
benefits.4
One recent study concluded that as much as 60 percent of the increase in employment of
single mothers since 1984 was attributable to expansions in the EITC.⁵ For the period between
1992 and 1996, the EITC explains 33 percent of the increase in annual employment. A second
study examined the 1986 EITC expansion, which was more modest than the 1993 expansion, and
found that it significantly increased labor force participation among single mothers, especially for
less educated women.6 Yet another study found that the EITC could result in an increase in labor
supply of 19.9 million hours in 1996 relative to 1993 law and induce 516,000 families to move
from welfare into the workforce.⁷
EITC benefits for married couples are based on the combined earnings of both husband
and wife. Hence, married couples are more likely than single parent families to fall in the range of
earnings where the EITC is being phased out. This has caused some researchers to predict that the
EITC might cause a decrease in hours of work among married couples. However, the limited
available evidence suggests that the expansions in 1986, 1990, and 1993 had modest disincentive
effects of 1.2 percentage points on labor force participation of wives, and they actually had a
small positive effect on married men (of 0.2 percentage points).⁸
How is the extra income from the EITC being used?
Most families receive their EITC dollars at tax payment time, in the form of a larger
refund. A recent study interviewed low-income workers who had gone to a volunteer tax
preparation office in Chicago for assistance with their tax return. The study asked the workers
what they planned to do with the EITC they were expecting to receive and found that 61 percent
planned to use at least some of their refund for investment purposes, such as to pay for education
(9 percent), repair, buy, or finance a car (10 percent), or to pay for a move (5 percent). Twenty-
⁴Liebman, J.B. (1998). "The Impact of the Earned Income Tax Credit on Incentives and
Income Distribution." Tax Policy and the Economy, 12, 83-119.
⁵Meyer, B., and D.T. Rosenbaum (1998). "Welfare, the Earned Income Tax Credit, and
the Employment of Single Mothers." Department of Economics, Northwestern University.
⁶Eissa, N. and J.B. Liebman (1996). "Labor Supply Response to the Earned Income Tax
Credit." Quarterly Journal of Economics, 111(2): 605-637.
⁷Dickert, S., S. Houser, and J.K. Scholz (1995). "The Earned Income Tax Credit and
Transfer Programs: A Study of Labor Market and Program Participation." Tax Policy and the
Economy, 9, 1-50.
Eissa, N. and H.W. Hoynes (1998). "The Earned Income Tax Credit and the Labor
Supply of Married Couples." Department of Economics, University of California, Berkeley.
5
eight percent said they were saving at least some of the EITC for future use.⁹
3.2 Increasing the Minimum Wage
The Administration has fought for
Chart 7: The Real Value of the Minimum Wage
increases in the minimum wage, and on October 1,
7.00
1996 the rate was raised from $4.25 to $4.75. The
rate was increased again to $5.15 on September 1,
6.50
1997. Prior to these increases, it had been five
6.00
years since the minimum wage was last raised, and
its real value had decreased by 15 percent (Chart
7).
1997 dollars
5.50
As shown in Charts 1 and 2, the wages of
5.00
low-wage workers increased substantially since
1996, and the recent minimum wage increases are
4.50
likely to explain much of this rise. It has been
4.00
estimated that almost 10 million workers benefited
1979
1982
1985
1988
1991
1994
1997
from the recent minimum wage hikes. 10
Most of the workers benefiting from the wage increases are adults from lower income
families, and their wages are a major source of their family's earnings. Among workers who were
earning between $4.25 and $5.15 just prior to the minimum wage increases, 71 percent were
adults (20 or older), 58 percent were women, and one-third were black or Hispanic workers.
Almost half of the affected workers (46 percent) worked full-time, and most of the low-wage
workers were in low-income households. That is, over half of the benefits from the minimum
wage increases were received by households in the bottom 40 percent of the income distribution.
And in 1997, the earnings of the average minimum wage worker accounted for 54 percent of their
family's total earnings.
One of the potential side effects of increasing the minimum wage is a reduction in
employment. That is, with labor more expensive, some firms may hire fewer workers. Many
empirical studies have examined this issue, and the weight of the evidence suggests that modest
increases in the minimum wage have had very little or no effect on employment. In fact, a recent
study of the 1996-97 wage increases used several different methods and found that the
employment effects were statistically insignificant. Moreover, the unemployment rates of African-
American teens and high school dropouts, who are two groups of workers most likely to be
⁹Smeeding, T., K. Ross, M. O'Connor, and M. Simon (1998). "The Economic Impact of
the Earned Income Tax Credit (EITC)." Center for Policy Research, Maxwell School of Public
Policy, Syracuse University.
¹⁰This finding, and the subsequent two paragraphs are based on: Bernstein, J., and J.
Schmitt (1998). Making Work Pay: The Impact of the 1996-97 Minimum Wage Increase
Economic Policy Institute, Washington, D.C.
6
affected by the wage hike, are lower today than they were just prior to the increases.
4. The Combined Effects of EITC and Minimum Wage Expansions
Increases in the minimum wage and expansions in the EITC reinforce each other. Among
low-wage workers, these changes have produced substantial increases in income. Table 2
demonstrates the combined effect of the two policies (after inflation), comparing 1993 and 1997
(as if the minimum wage was in effect the full year). During this period the minimum wage rose
by 9 percent, while the maximum EITC credit rose by 38 percent for one-child families (116
percent for two-child families). For families with one earner working full-time at the minimum
wage, their combined earnings-plus-tax refund would have risen 14 percent if they had one child
(27 percent if they had two or more children). This is a significant gain in real purchasing power
among these parents.
As the bottom of Table 2 demonstrates, full-time work at the minimum wage no longer
leaves families below the poverty line. As a result of these policy changes, one and two-child
families with a single full-time minimum wage worker now earn enough to escape poverty.
5. Conclusion
The past several years have been very good ones for less-skilled workers in the labor
market. Wages are up and unemployment is down. Among single mothers, many more are
participating in the labor market, while welfare caseloads have declined steeply. The research
evidence indicates that these gains partially reflect the strong economy, but that the gains have
been reinforced by Administration policies that have increased the financial rewards for low-wage
and less skilled persons to work.
Providing the economic incentives to work are an important legacy of this Administration.
These gains mesh well with other goals this Administration has pursued, such as adequate child
care for the children of working mothers and available training for those workers who want to
increase their skills and work opportunities. In the long run, a healthy strong economy must rely
on a trained and hard-working labor force, with opportunities for both the more and less
educated. There has been real progress toward this goal in recent years.
7
Table 1. Factors Accounting for Changes in Child Poverty
1979-97
1979-89
1989-93
1993-97
Changes to official poverty rate attributable to
changes in:
Family structure
2.1%
1.2%
0.8%
0.3%
Earnings and other before-tax-and-after income
1.4%
1.1%
3.5%
-3.6%
Cash social insurance and welfare payments
0.3%
1.0%
-1.1%
0.5%
Total change in official poverty measure
3.8%
3.2%
3.1%
-2.8%
Change in extended poverty rate attributable to
changes in:
Means-tested food and housing transfers
0.4%
0.4%
-0.3%
0.4%
Taxes
-2.3%
0.3%
0.0%
-2.6%
Total change in extended poverty rate
1.9%
4.0%
2.9%
-5.0%
8
Table 2. The Effects of Changing Minimum Wage and EITC on Earnings of Single Parents
(All numbers in $1997)
1993
1997
Percent Change
Program Parameters
Minimum wage
$4.72
$5.15
9
Maximum EITC
One-child family
$1,602
$2,210
38
Two-child family
$1,689
$3,656
116
Earnings minus
taxes*
One-child family
$10,320
$11,722
14
Two-child family
$10,407
$13,168
27
Ratio of earnings
minus taxes to
poverty line
One-child family
0.93
1.06
Two-child family
0.80
1.02
*Assumes one earner works full-time/full-year (2000 hours) at minimum wage. Taxes include
income taxes (including the EITC) and employee share of social security taxes.
9
"The Forgotten Half" Ten Years Later
The nearly 10 million 18 to 24 year old Americans who don't go on to college after high school
aren't doing as well at the end of the 1990's as they were a decade ago. In 1988, these young
adults were the focus of two landmark reports which called the nation's attention to young
people's shaky prospects for successful passage to productive, adult lives. These reports, The
Forgotten Half: Non College Youth in America and The Forgotten Half: Pathways to Success for
America's Youth and Young Families, were both produced by the William T. Grant Foundation
Commission on Work, Family and Citizenship.
According to the reports' follow up, The Forgotten Half Revisited: American Youth and Young
Families 1988-2008, while some progress is visible, today's young people are still losing ground.
Samuel Halperin, editor of the new report and study director for those previous, concludes that
there has been scant progress in some areas and some regression elsewhere. For instance, ten
years ago, most young people who were not going to college, and receiving little adult or public
assistance, were found to be making the transition to adulthood with ever increasing difficulty-
this situation has only marginally changed.
In fact, some of the more striking indicators examined in the follow up, such as education and
employment, show stagnated growth or regression. To complicate matters, respected trend
spotter, Daniel Yankelovich, points out that America as a society is beset by negative images of
youth in areas across the board (education, moral values). Does this detract from or create
governmental response to young people's needs? The Forgotten Half Revisited not only tells us
where we've been and what progress, if any, we have made, it is meant to be used as a blueprint
for informing us where and what types of interventions need be applied.
The Indicators
Employment and Wages: Down and Unpromising
The critical transition from school to work is harder for young people today, than a decade ago.
Moving to permanent employment is taking longer, young workers who do not go on to college
or career training are experiencing longer periods of unemployment and relying more than ever
on part-time jobs, and tenure at all jobs is shorter and less stable.
Even in a booming economy, full and part time employment rates for young adults are lower
now than in 1989. For minority youth, full time employment is 20 to 30% lower than their white
counterparts. Overall, inflation adjusted earnings for 20-24 year olds fell by one third for young
men and 16.5% for young women. Meanwhile more than one fourth of out of school young
adults working full time in 1997 were earning less than the poverty line income standard of just
over $16,000 [annually for a family of four].
Social Indicators: Persistent Negative Trends
Social indicators show home ownership for young families falling from 49% to 38% between
1980 and the 1990's. The number of incarcerated men under the age of 25 doubled between 1986
and 1995. On any given day in America, one in ten 20-29 year old males is in jail, on probation,
or on parole. Of the four million births annually in America, one in eight is to a teenager, one in
four to an unmarried mother with less than a high school education, and one in three to a mother
living in poverty. And, the rate of teen deaths by homicide more than doubled from 1985 to 1994
with African American males being eight times more likely to be murdered than their Caucasian
peers.
Educational Attainment: Moderately Encouraging
The data on educational attainment is uneven but slightly more positive. From 1990 to 1997, the
percentage of adult Americans who earned a high school diploma or GED rose from 28.3% to
31.4%. The percentage of those earning a bachelor's degree rose from 11.4% to 14.1% and high
school dropout rates fell from 9.5% in 1985 to 7.3% in 1996.
However, the most influential factor determining educational attainment still remains family
income- with the income gap among families becoming wider. Families in the lowest income
quartile have a high school graduation rate of 67%, compared to 94% among students with
families in the top income quartile. Students from families in the top quartile are also up to ten
times more likely to earn a college degree. Furthermore, while more Americans are going to
college, the proposition that everyone in America goes to college remains a myth.
School Reform: Mixed Indications
The Forgotten Half of ten years ago may be more nearly a "Forgotten Third" today as more high
school graduates begin (but not necessarily complete) postsecondary education. Although some
reforms are taking hold- more rigorous coursework, higher standards, tougher graduation
requirements- the academic performance of America's students still lags behind that of their
international peers, leading the report to conclude, that curriculums be altered to introduce more
difficult subjects earlier and often. While the initial news on reform is encouraging, the bad news
is that those who are left behind or dropout, face bleaker economic futures than did their
counterparts in the 1980's. As education and skills have become increasingly vital to adult
success, we are still losing a third or more of our young people to limited economic futures.
The Community Response: Promising Signs
Among the most heartening news is what is happening for young people in communities. A new
brand of youth-focused initiatives moving towards community generated responses to young
adult problems, as opposed to top down, imposed solutions, are unfolding. Assuming their roles
as "keepers of values" and "human ecosystems," individual communities are recognizing and
embracing the importance of strengthening the next generation of leaders, workers and parents.
Youth Service: A Bright Spot
Evaluations of the many youth service programs begun since publication of the 1988 report,
reveal that young people have responded positively to national and community service, and that
such service has a positive effect on academic performance, building character and forming
values. It is the forecast of the report, that we can make service a common experience of
American youth.
Youth Development: A Call Heard
Ten years ago The Forgotten Half was in the forefront of a call to shift the emphasis of our
concerns for youth from treatment and deterrence, to positive youth development. That call has
generated a surprising energy and enthusiasm with the most encouraging outcome being
increased acceptance of youth development as a broad, national goal, requiring monitoring and
intervention.
Conclusion: The Nation's Best Investment
In a concluding essay, The Forgotten Half Revisited reminds us that the most powerful, and least
expensive strategy for solving the problem facing America's young adults, remains prevention,
particularly through large scale expansion of early childhood programs including quality Head
Start. Overall, vigorous efforts to build "social capital"- opportunities for youth to gain skills
and knowledge, along with the requisite support services- are what is needed to compliment the
successes our country has seen in boosting educational attainment. More focused initiatives
across communities and social institutions can still make a difference.
MEMORANDUM FOR HILLARY RODHAM CLINTON
FROM:
Shirley Sagwa and Nicole Rabner
RE:
Discrepancies between The Forgotten Half and the Council of Economic Adviors
EITC and Minimum Wage Report
DATE:
January 27, 1999
You asked us to analyze why The Forgotten Half Revisited (TFH) and the CEA Reports paint
such different pictures of the economic status of low income Americans. The short answer is
that the two used different time frames and different segments of the populations for their
analysis.
TFH looks at the circumstances of less-educated young people (18 to 24), comparing 1996 data
with 1988 or, in some cases, 1973 data. The CEA looks at the effect of minimum wage and
EITC on low-wage workers of all ages and levels of education, with an emphasis on families
(note, for example, that many 18 to 24 year olds do not have children and therefore do not
qualify for EITC). CEA uses as its baseline 1993, with particular emphasis on the dramatic
improvements that occurred between 1996 and 1998 -- a period in large part not examined by
TFH.
One other distinction worth noting: TFH looks more broadly at the quality of jobs young people
have (health insurance availability, opportunity for advancement, etc.), while CEA looks only at
labor force participation and family income.
The attached memo by MaryEllen McGuire provides more detail on the differences between the
two reports.
To:
Shirley Sagawa
From: MaryEllen McGuire
Re:
Discrepancies between The Forgotten Half and The Council of Economic Advisors
EITC and Minimum Wage Report
Date: January 10, 1998
To reconcile what appear to be discrepancies in the economic and social reporting of The Forgotten
Half (TFH) and The Council of Economic Advisors EITC and Minimum Wage Report (CEA
Report), consider each reports' intended emphasis, target population, and the time span they
consider. When we look at these factors together, the two reports are rarely, if at all, at odds.
Differences in Focus:
The objective of TFH was to explore the educational, political, social and economic plight of our
less educated youth, those 18-24 year olds who have not attended college and some of whom
dropped out of high school. The objective of the CEA Report was to highlight the efforts of two
very specific government programs on low wage American families, namely the Earned Income
Tax Credit (EITC) and the minimum wage hike. The CEA report gives no special attention to the
age of its' heads of households and does not on the surface appear to make reference to levels of
education. One could however make the case that educational attainment is being considered in the
CEA Report, as the majority of Americans in low income households are headed by adults with
lower levels of education.
In addition, the two reports use different time spans: TFH charts young adults' progress over the
past ten years, while the CEA report covers the period from 1993-1998, with particular emphasis
on 1996 to the present. When one puts all three of these differences into a larger context- report
objectives/ intended focus, target population and time span covered- what appear to be
discrepancies among the reports are actually complementary pieces of information.
Issue of Unemployment/ Quality of Work
When you consider different populations examined, it makes sense that individuals considered to
be part of TFH are doing less well than American families overall. Mountains of evidence, and
even the CEA Report, demonstrate that in an increasingly educated and specialized workforce,
those with only a high school diploma or less are at a great disadvantage for obtaining and
maintaining employment that accords an acceptable standard of living.
TFH asserts that those who don't go on to college, and especially high school drop outs, are more
likely to experience periods of unemployment. CEA agrees. According to CEA figures, while
unemployment sits currently at 4.4%, the lowest rate since 1969, individuals with less than a high
school diploma experience unemployment at a higher rate of 7.2%. CEA would point out however,
that this 7.3% level is an improvement over 11.1% in 1993.
One cohort that has not seen an improvement in its levels of employment, and has seen a 3% rise in
unemployment (to 11%), is that of males 16-24. CEA does not examine this group as a separate
entity, partly because they only look at American families and most males 16-24 would not qualify
as heads of households.
TFH, unlike the CEA Report, also pays special attention to the nature and quality of employment;
whether an earner is working one full time job or several part time jobs, and whether or not a
worker is being afforded health insurance. CEA does not appear to consider how a 40 hour work
week is constituted and does not consider the issue of insurance. It does however pay special
attention to the number of people, especially children, that are being lifted out of poverty by the
EITC and minimum hike wage. TFH is focused not so much on the poverty line but on broader
issues and better quality of life.
One fact that both reports celebrate is that more single mothers are participating in today's
workforce. The CEA report attributes this to the fact that through the EITC and minimum wage
hike, the Administration is making work pay. TFH mentions the EITC as an admirable government
credit with the single highest participation rate of any anti poverty program. It does not speak of
the EITC in any depth.
The Wage Issue
The CEA Report speaks very highly of a 4.4% growth in median wages from 1996 to 1998 for low
income wage earners and attributes a great deal of this growth to the 9% hike in the minimum wage
which it estimates has affected 46% of low income households. While TFH may not disagree with
this, it is their point that despite significant gains over the past few years, real weekly earnings are
still down $128 since 1973, and while young families are recouping in the 90's from the wage
losses of the 80's, they are still earning quite a bit less than their peers just one generation earlier--
with high school graduates experiencing the greatest loss in purchasing power.
Poverty Rates
The CEA Report pays special attention to poverty rates and the effect the EITC appears to have had
on them. TFH notes that poverty rates are down from 1996, but still up from the 1980's. It
negatively reports that high school drop outs are much more likely to be poor than high school or
college graduates and positively reports that single mothers are more likely to be employed and
earn higher wages than before [which the CEA Report attributes to the EITC and minimum wage
hike].
Conclusion
The CEA Report emphasizes that Administration policies, especially as they relate to the EITC and
minimum wage hikes, have played a key role in the employment and wage gains over the past two
years. I do not think that TFH would disagree. TFH would note however, that young people with
the lowest levels of education are experiencing unemployment at much higher rates than any other
cohort, and that real wages are still lower than they were a generation earlier. TFH would not
dispute the CEA that gains have been made, but would like to see that these gains are extended
further.
The Council of Economic Advisors
The Forgotten Half
Comparison
Report
(TFH)
(CEA Report)
Report Focus
The CEA Report focuses on the effects of two
TFH focuses on the educational, political, social and
-CEA report focuses on the effects of two
very specific government programs, the Earned
economic plight of the nearly 10 million Americans,
government programs
Income Tax Credit and the minimum wage hike
aged 18-24 years old, who do not go on to college
-TFH is wider in scope looking at the
on American families, particularly low income
after high school [and who may not have even
educational, political, social and economic
families.
finished high school].
plight of our young people
Population Focus
Low income families.
A particular age cohort of particular educational
-CEA report focuses on families with no
attainment: 18-24 year olds with no college and/or
particular age given emphasis
no high school diploma- about 40% of young people.
-TFH focuses on 18-24 year olds, and at times
16-24 year olds
-TFH pays close attention to educational
attainment
-the fact that the CEA Report examines the
plight of low income families suggests attention
to those with less education as low income
families are likely to be headed by adults with
lower levels of education
Time Span
1993-1998, particularly the last two years
The last ten years, 1989-1999
-TFH looks at a much broader time span
including time spent outside this Administration
General Message
Low income families are doing much better today
Today's young adults without a college degree are
-Not in opposition
than they were just two years ago (1996).
having a much harder transition into adulthood than
-TFH does seem to agree that there have been
their college educated peers. Lack of higher
Y
overall unemployment and wage improvements
education continues to be a barrier to economic
over the past two years but compared to the
opportunity.
larger picture, the past ten years, we have still
not recouped, especially where are young people
are concerned
Thoughts on
The labor market is in great shape and continues
Focusing exclusively on the 18-24 year old cohort:
-both would agree that unemployment is down
Unemployment
to perform at record pace.
-those who don't go on to college, and especially
overall
-Unemployment in '98 was only 4.4%, the lowest
high school drop outs, are more likely to experience
-fact is young people with less education still
rate since '69
periods of unemployment and rely on PT work for
find work less
-agrees that the employment outlook is not as
more years
-point is when finding work AGE is a significant
good for the less educated but is improved since
-young males are less likely to make a single
variable, as is level of education
'93
transition to the work force
no high school degree: '93 unemployment 11.1%
-in '97 only 56.3% of 16-24 year olds find FT work,
'97 unemployment 7.2%
3% less than '89
high school only:
'93 unemployment 6.6%
-FT work highly correlates to education
'97 unemployment 3.9%
dropouts 34.9%, high school 60%, BAs 82.3%
-more single moms are in the workforce
-Top 40% of families enjoy rising income, most
in '92 -73.7% at work, in '97- 84.2% at work
others stagnant or earn less
-unemployment overall is down
Thoughts on Wage
-from '96 to '98 there has been a 4.4% gain in
-TFH are experiencing less permanent wage growth
-remember that CEA makes no age distinctions,
Growth
median wages, especially among low income
-real weekly earnings are down '73 to '98 from
refers mostly to wage hikes over the last two
earners
$463 to $335
years due to the minimum wage jump, and is
-there has been a substantial increase in minimum
-earners are however at their highest levels in the
only comparing '96 to '98 without looking at
wage since '96 ($4.25 to $5.15)
90s, with '98 showing the best performance in 20
how this admitted jump compares to ten years
-from '93 to '97 the minimum wage rose 9%
years
ago
with an estimated 10 million people benefitting
-BUT, inflation adjusted earnings are still 1.3 less
-both agree real earnings are not where they
-46% of those benefitting worked full time
than a generation earlier, 24 years ago
were a generation ago
-most benefitting are low income workers
-in '97 under 25's earned 51.5% of over 25's
-both agree there has been wage improvement
-BUT, real value of hike is still less than wages
-young families are recouping in the 90s but still
recently
earned in '84/'85
below what young families made 24 years ago
-overall wages up
- high schools grads are losing the most purchasing
power
-families led by those with four year degrees did
better, but even they earned less
Poverty Rates/
-in 1997, the EITC reduced the number of
-Poverty rates in '96 down 2% from '92 but still up
-looking at entirely different time spans
Poverty Rates for
children living in poverty by 2.2 mill
from 21% in '80s
-poverty is getting better but still higher than a
Children
-over half of the decline in poverty from '93 to
-1/4 young families live in poverty
decade earlier
'97 can be explained by changes in taxes, most
-high school dropouts are more likely to be poor:
-both agree with strides in single mothers'
importantly the EITC
64% of poor are dropouts, 34% have only high
condition
school degrees, 7% have BA's
-poverty rates are higher in '96 than '89 except for
four year degree holders
-Except for children living in families headed by 4
year college grads, poverty rates for children were
higher in '97 than '89
-kids in single mother families are most likely to be
poor but these moms are doing better, more likely to
be employed and earn higher wages now
EITC
-Administration's polices have played a key role
-recognizes the EITC as a good safely net, as the
-both agree the EITC is pulling people out of
in unemployment/ wage gains
government program that helped the poor the most
poverty
-the Administration made work pay through the
-lifted 2.4 mill kids out of poverty in '96, 37.3% of
-TFH does not look at the EITC in depth
EITC and minimum wage hike
the poor kids
-in '97 the EITC raised 4.3 million out of
-EITC provides a powerful work incentive
poverty, more than double the '93 rate
-EITC has the highest participation rate of any anti
-The EITC supplemented the incomes of low
poverty program: 81-86%
wage working parents
"The Forgotten Half" Ten Years Later
The nearly 10 million 18 to 24 year old Americans who don't go on to college after high school
aren't doing as well at the end of the 1990's as they were a decade ago. In 1988, these young
adults were the focus of two landmark reports which called the nation's attention to young
people's shaky prospects for successful passage to productive, adult lives. These reports, The
Forgotten Half: Non College Youth in America and The Forgotten Half: Pathways to Success for
America's Youth and Young Families, were both produced by the William T. Grant Foundation
Commission on Work, Family and Citizenship.
According to the reports' follow up, The Forgotten Half Revisited: American Youth and Young
Families 1988-2008, while some progress is visible, today's young people are still losing ground.
Samuel Halperin, editor of the new report and study director for those previous, concludes that
there has been scant progress in some areas and some regression elsewhere. For instance, ten
years ago, most young people who were not going to college, and receiving little adult or public
assistance, were found to be making the transition to adulthood with ever increasing difficulty-
this situation has only marginally changed.
In fact, some of the more striking indicators examined in the follow up, such as education and
employment, show stagnated growth or regression. To complicate matters, respected trend
spotter, Daniel Yankelovich, points out that America as a society is beset by negative images of
youth in areas across the board (education, moral values). Does this detract from or create
governmental response to young people's needs? The Forgotten Half Revisited not only tells us
where we've been and what progress, if any, we have made, it is meant to be used as a blueprint
for informing us where and what types of interventions need be applied.
Indicators
The Areas Explored
Employment and Wages: Down and Unpromising
The critical transition from school to work is harder for young people today, than a decade ago.
Moving to permanent employment is taking longer, young workers who do not go on to college
or career training are experiencing longer periods of unemployment and relying more than ever
on part-time jobs, and tenure at all jobs is shorter and less stable.
Even in a booming economy, full and part time employment rates for young adults are lower
now than in 1989. For minority youth, full time employment is 20 to 30% lower than their white
counterparts. Overall, inflation adjusted earnings for 20-24 year olds fell by one third for young
men and 16.5% for young women. Meanwhile more than one fourth of out of school young
adults working full time in 1997 were earning less than the poverty line income standard of just
over $16,000 [annually for a family of four].
Social Indicators: Persistent Negative Trends
Social indicators show home ownership for young families falling from 49% to 38% between
1980 and the 1990's. The number of incarcerated men under the age of 25 doubled between 1986
and 1995. On any given day in America, one in ten 20-29 year old males is in jail, on probation,
or on parole. Of the four million births annually in America, one in eight is to a teenager, one in
four to an unmarried mother with less than a high school education, and one in three to a mother
living in poverty. And, the rate of teen deaths by homicide more than doubled from 1985 to 1994
with African American males being eight times more likely to be murdered than their Caucasian
peers.
Educational Attainment: Moderately Encouraging
The data on educational attainment is uneven but slightly more positive. From 1990 to 1997, the
percentage of adult Americans who earned a high school diploma or GED rose from 28.3% to
31.4%. The percentage of those earning a bachelor's degree rose from 11.4% to 14.1% and high
school dropout rates fell from 9.5% in 1985 to 7.3% in 1996.
However, the most influential factor determining educational attainment still remains family
income- with the income gap among families becoming wider. Families in the lowest income
quartile have a high school graduation rate of 67%, compared to 94% among students with
families in the top income quartile. Students from families in the top quartile are also up to ten
times more likely to earn a college degree. Furthermore, while more Americans are going to
college, the proposition that everyone in America goes to college remains a myth.
School Reform: Mixed Indications
The Forgotten Half of ten years ago may be more nearly a "Forgotten Third" today as more high
school graduates begin (but not necessarily complete) postsecondary education. Although some
reforms are taking hold- more rigorous coursework, higher standards, tougher graduation
requirements- the academic performance of America's students still lags behind that of their
international peers, leading the report to conclude, that curriculums be altered to introduce more
difficult subjects earlier and often. While the initial news on reform is encouraging, the bad news
is that those who are left behind or dropout, face bleaker economic futures than did their
counterparts in the 1980's. As education and skills have become increasingly vital to adult
success, we are still losing a third or more of our young people to limited economic futures.
The Community Response: Promising Signs
Among the most heartening news is what is happening for young people in communities. A new
brand of youth-focused initiatives moving towards community generated responses to young
adult problems, as opposed to top down, imposed solutions, are unfolding. Assuming their roles
as "keepers of values" and "human ecosystems," individual communities are recognizing and
embracing the importance of strengthening the next generation of leaders, workers and parents.
Youth Service: A Bright Spot
Evaluations of the many youth service programs begun since publication of the 1988 report,
reveal that young people have responded positively to national and community service, and that
such service has a positive effect on academic performance, building character and forming
values. It is the forecast of the report, that we can make service a common experience of
American youth.
Youth Development: A Call Heard
Ten years ago The Forgotten Half was in the forefront of a call to shift the emphasis of our
concerns for youth from treatment and deterrence, to positive youth development. That call has
generated a surprising energy and enthusiasm with the most encouraging outcome being
increased acceptance of youth development as a broad, national goal, requiring monitoring and
intervention.
Conclusion: The Nation's Best Investment
In a concluding essay, The Forgotten Half Revisited reminds us that the most powerful, and least
expensive strategy for solving the problem facing America's young adults, remains prevention,
particularly through large scale expansion of early childhood programs including quality Head
Start. Overall, vigorous efforts to build "social capital"- opportunities for youth to gain skills
and knowledge, along with the requisite support services- are what is needed to compliment the
successes our country has seen in boosting educational attainment. More focused initiatives
across communities and social institutions can still make a difference.
AMERICAN YOUTH POLICY FORUM
"THE FORGOTTEN HALF" TEN YEARS LATER
FOR IMMEDIATE RELEASE
CONTACT
Samuel Halperin or Sarah Pearson
202/775-9731
Washington, DC - The nearly ten million 18-to-24 year-old Americans who don't go
on to college after high school aren't doing as well at the end of the 1990s as they were a
decade ago. In 1988, these young Americans were the focus of two landmark reports,
The Forgotten Half: Non-College Youth in America and The Forgotten Half: Pathways to
Success for America's Youth and Young Families, both by the William T. Grant Foundation
Commission on Work, Family and Citizenship, which called the nation's attention to their
shaky prospects for successful passages to productive adult lives.
While some progress is visible, "These young people are still losing ground" on
many fronts, according to Samuel Halperin, editor of The Forgotten Half Revisited:
American Youth and Young Families, 1988-2008. Halperin, who also served as study
director for the 1988 reports, writes: "There has been scant progress in a few areas and
quite substantial regression elsewhere. Ten years ago, most young people who were not
going to college were receiving little adult or public assistance and, only with great
difficulty, making the transition to adulthood. Their situation has changed only marginally
since then."
Most key indicators -- as examined in essays by 15 prominent experts and
commentators on such topics as public schooling, postsecondary education, family life,
preparation for employment, youth and community development, and national service,
show either disturbing stagnation or, in some areas, marked retrogression. Nationally-
respected trend-spotter Daniel Yankelovich notes in his essay, for example, that we are
beset by negative public perceptions of youth in such critical areas as education, moral
values, and governmental and popular responses to the needs of young people.
Some of the key findings of The Forgotten Half Revisited:
Employment and Wages: Down and Unpromising The critical transition from
school to the workplace has become more painful than a decade ago. Moving to
permanent employment is taking longer. Young workers who do not go on to college or
career training are experiencing longer periods of unemployment and are relying more than
ever on part-time, dead end jobs. Moreover, their tenure in jobs is shorter and less stable.
Even in a booming economy, full- and part-time employment rates among "The
Forgotten Half" were actually lower in 1997 than in 1989. And for minority youth, full-
time employment is 20 to 30 percent lower than their white counterparts. Overall,
inflation-adjusted earnings for 20-24 year-old male workers fell by one-third, while young
women were earning 16.5 percent less. In March 1997, more than one-fourth of out-of-
school young adults who were working full-time were earning less than the poverty line
income standard of just over $16,000 annually for a family of four.
1836 Jefferson Place, NW, Washington, D.C. 20036-2505
Tel: (202) 775-9731 www.aypf.org Fax: (202) 775-9733
Critical Social Indicators: Persistent Negative Trends
Home ownership for young families fell from 49 to 38 percent between 1980 and
the 1990s.
The number of incarcerated young men under age 25 doubled between 1986 and
1995. On any given day in America, one in ten 20-29-year-old males is in jail, on
probation, or on parole.
Of the four million births annually in America, one in eight is to a teenager, one in
four to an unmarried mother with less than a high school education, and one in three
to a mother living in poverty.
The rate of teen deaths by homicide per 100,000 more than doubled between 1985
and 1994.
According to Carol Emig, in her report on "The Changing American Family," the
homicide rate of 100 deaths per 100,000 15-19 year-old African American males in 1996
is "the single most horrifying statistic in the child and family field" -- eight times larger than
for white males in the same age group.
Educational Attainment: Moderately Encouraging.
The data on educational attainment are uneven but slightly more positive than
negative. From 1990 to 1997, the percentage of adult Americans who earned a high
school diploma or GED rose from 28.3 to 31.4. And the percentage of those earning a
bachelor's degree rose from 11.4 to 14.1 percent. This encouraging news was
accompanied by high school dropout rates that fell from 9.5 percent in 1985 to 7.3 in
1996.
The most influential factor determining educational attainment, however, remains
family income and there the news is not as good, as the gap widens along an income fault-
line. Families with the lowest 25 percent of incomes have a high school graduation rate of
67 percent, compared to 94 percent among students from families in the top 25 percent of
earners. The latter are also as much as ten times more likely to earn a college degree than
are those in the bottom 25 percent. The report labels the proposition that "In America,
everybody goes to college" a myth.
School Reform: A Mixed Bag. Assessing the impact of 15 years of school reform
efforts, Jack Jennings and Diane Stark Rentner point out that "The Forgotten Half" of ten
years ago may be more nearly a "Forgotten Third" today, as more high school graduates
begin (but not necessarily complete) postsecondary education. Although some reforms are
taking hold -- increasingly rigorous course work, higher standards and tougher graduation
requirements, for example -- the academic performance of America's students still lags
behind that of their peers in many other countries. "The curriculum may have to be altered
to expose Americans to more difficult subjects earlier," they comment. While the initial
news on reform is encouraging, the bad news is that those left behind face a bleaker
economic future than did their counterparts in the 1980s. As education and skills have
become increasingly vital to adult success, we are still losing a third or more of our young
people to a limited economic future.
The Community Response: Promising Signs. Among the more heartening news is
what is happening for young people in many communities, as reported by Martin J. Blank
and Carol Steinbach. They see "a new breed of youth-focused initiatives," that are moving
away from imposed, top-down solutions and toward community-generated responses to
young adult problems. Communities across the country, report the authors, are focusing
more intently on their roles as "keepers of values" and "human ecosystems."
Youth Service: Another Bright Spot. Evaluations of the many youth-service
programs begun since publication of The Forgotten Half reports of 1988 reveal that young
people responded positively to national and community service, and that such service has a
positive effect on academic performance, building character and forming values. Author
Shirley Sagawa notes that it is now possible "to make service a common experience of
every child growing up in America."
Youth Development: A Call Heard. Ten years ago, The Forgotten Half was in the
forefront of a call to shift the main emphasis of the nation's concern for its youth from
treatment and deterrence to positive youth development. That call has "generated a
surprising energy and enthusiasm," according to Karen Pittman and Merita Irby. They
view the most encouraging outcome as an "increased acceptance of youth development as
a broad goal requiring intentional monitoring and intervention."
The Nation's Best Investment. In a concluding essay, education statesman Harold
"Doc" Howe II, former U.S. Commissioner of Education who headed the study group that
issued the 1988 Forgotten Half reports, reminds that the most powerful and least
expensive strategy for solving the problems facing America's young adults remains
prevention, particularly through a large-scale expansion of quality Head Start and early
childhood programs. Overall, says Howe, vigorous efforts to build "social capital" --
opportunities for youth to gain skills, knowledge and support services -- are required to
complement the successes America has had in boosting educational attainment.
As part of such an effort, Howe believes the country needs to adopt a firm policy
position on how, in a pluralistic society, we educate students whose first language is not
English, and how we work to integrate them into an increasingly diverse culture. This, he
believes, is the nation's greatest challenge. "Our country needs to be reminded that young
people do grow up and their success in life is the best investment we could make."
###
Copies of the 200-page report The Forgotten Half Revisited are available at $15.00
prepaid, including postage and handling. An 28-page executive summary is $2.00. Order
from:
American Youth Policy Forum
1836 Jefferson Place, NW
Washington, DC 20036-2505
(Federal I. D. 31-1576455}
AMERICAN YOUTH POLICY FORUM
December 28. 1998
A PROGRESS REPORT
Dear Colleague: Shirley
Our report, The Forgotten Half Revisited, appeared just as the House of
Representatives and national attention became dominated by impeachment
proceedings against the President. Now that things have quieted a bit, we are
beginning to receive laudatory letters, some press notices, and bulk orders from
various organizations.
To date, we have mailed about 1,600 copies of the report to a list of
"influentials" compiled with your help policymakers, journalists, association
heads, academics and corporate leaders associated with education and training
issues. Yesterday, for example, we mailed copies to all the state Senate and
Assembly chairs of the education committees.
Bulk orders or mailings of the report or its Summary have been filled from the
U.S. Conference of Mayors, National Association of Partners in Education,
Emerging Coalition for Community Schools, National Conference of State
Legislatures, Missouri School Superintendents Association (Danforth Foundation),
New Hampshire Department of Education, and the George Gund Foundation.
Additional mailings are scheduled for all chief state school officers and their
deputies, all governors' education aides and workforce development specialists and
business magazine journalists.
PLEASE LET US KNOW IF YOU'D LIKE ADDITIONAL COPIES FOR YOUR
PERSONAL DISTRIBUTION.
MAY YOU AND YOURS ENJOY A WONDERFUL NEW YEAR 1999!
C
Sam
Samuel Halperin
1836 Jefferson Place, NW, Washington, D.C. 20036-2505
Tel: (202) 775-9731 www.aypf.org Fax: (202) 775-9733
APCO ASSOCIATES INC.
Public Affairs and Strategic Communications
December 23, 1998
Ms. Shirley Sagawa
Deputy Assistant to the President and
Deputy Chief of Staff to the First Lady
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
Dear Shirley:
On behalf of the Kellogg Foundation Service-Learning Initiative I want to
thank you for taking time to meet with Nancy Ames, Bob Bissen and me. Your
thoughts on various pieces of the Initiative were helpful. We also appreciate your
suggestions on how service-learning and the Kellogg Initiative might support the
First Lady's current priorities.
It was great to reconnect with you and I look forward to working with you
as the Initiative continues to develop. Best wishes for a happy and healthy 1999!
Sincerely,
Nanay Nancy Murphy manuy
cc: Chris Kwak
1615 I. Street, N.W., Suite 900, Washington, D.C. 20036 (202) 778-1000, FAX (202) 466-6002, http://www.apcoassoc.com
Beijing, Brussels, Hong Kong, London, Moscow. Otrawa, Paris, Sacramento, Seattle, Toronro, Washington, D.C.
UNIVERSITY OF MINNESOTA
The University of Minnesota Hospital and Clinic/
Division of General Pediatrics and
Box 72)
Variety Club Children's Hospital
Adolescent Health
420 Delaware Street S.E.
Department of Pediatrics
Minneapolis, MN 55455
Medical School
Office:
D136 Mayo Memorial Building
420 Deluware Street S.E.
Minneapolis, MN 55455
612-626-2820
Fax: 612-626-2134
E-mail: [email protected]
January 20, 1999
Samuel Halperin
American Youth Policy Forum
1836 Jefferson Place, NW
Washington, DC 20036-2505
Dear Sam:
I just wanted to take this opportunity to congratulate you on what is absolutely an extraordinary
volume on the Forgotten Half Revisited. I must confess that when the volume arrived on my desk,
as is often the case with something that size, I planned to just glance at it and then return to it at
some later date. However, as I started reading, I became "entrapped" and I couldn't put it down
until I was done. It is an extraordinary piece of work and represents exemplary advocacy. I have
shared it with colleagues here and will be ordering a number of copies.
Congratulations on work exceptionally well done. I have encouraged Karen Hein to invest in the
broad dissemination of the report.
Warm personal regards,
Rob
Robert Wm. Blum, M.D., Ph.D.
Professor and Director
Division of General Pediatrics
& Adolescent Health
Sam
with respect!
Continues to be feable in this regard
-aband 97M01LB079 H 2, working mgo no rpr
Can't more be done to highlight the parts of our society
good rewaparade of the State of the Urion address, but
Revisited might, in parts, noin on 7
gott TI rpr may 8
# Fax
Fax # 456-6244
# Phone
# Phone
- horrys .#P
Co.
Co./Dept.
From AYPF
To SHIRLEY SAGAWA
E.
pages
10 #
52-1 Dieg
7671
Post-it Fax Note
2919-934
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AYPF
ТЙ
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PAGE 02
BOARD OF DIRECTORS
CHAIRMAN
NATIONAL CHILD LABOR COMMITTEE
JULIANNE MALVRAUX. PH.D
President and CEO
National Committee on Employment of Youth is National Committee on the Education of Migrant Children
Last Word Productions, Inc.
VICE CHAIRS
BETSY BRAND
President
FOR IMMEDIATE RELEASE
Workforce Futures, Inc.
January 25, 1999
GEONGE V. PEDRAZA
Vier President
For further information, contact:
Public Finance Group
Chase Sccurities of Texas, free
Hartley du Pont or Elsie McCarthy, 212-840-1801
TREASURER
Lori Antonacci, 212-598-4542
1. ROBERT CAREY
Presidens
Carey Consulting Company
SECRETARY
ERIK BUTLER
Execution Director
Samuel Halperin of Washington, D.C.
Fine Street Irra
Named 1999 Lewis Hine Award Winner by
VINCENT BENI. ED.D.
National Child Labor Committee
Discrict Superintendent and
Executive Officer
Southern Wesceberter SOCES
GEOPPREY BUSH
Group Community Relations Director
Samuel Halperin, Ph.D., the unsung architect of much of the far-reaching
Diagoo
education legislation of this era and founder of the American Youth
ELIZABETH N. CALLAWAY
Dwan of Admissions
Policy Forum (AYPF), will be honored with a 1999 Lewis Hine Award
The Dright School
from the National Child Labor Committee (NCLC) at ceremonies to be
BERTRAM CARE
Williams & Jenien
held Thursday, January 28, at F.A.O Schwarz in New York City.
MICHAEL COHEN. PH.D.
Fresident
ARC Consulting
Dr. Halperin, a practical visionary who has quietly and persistently
JOAN GANZ COUNEY
helped mobilize the public will around the needs of its youth, will join
Coliman, Executive Committee
Children's Television Workshop
nine other Hine Award honorees from around the nation and F.A.O
B. ROBERTO CRUZ, PH.D.
President
Schwarz Chairman and CEO John Eyler for the 12th awards program
National Hupanic University
presented by NCLC. Other award recipients come from California,
JATRICE MARTEL GAITER
Narumal Executive Director
Florida, New Jersey, North Carolina, Ohio, Texas and West Virginia.
sas Children's Villager USA, Inc.
NINA R. HICKSON, EsQ.
Vice President
Not content with passing laws, Dr. Halperin's goal is to make sure those
Primerica Financial Services
who carry them out are knowledgeable, compassionate and committed to
ELTON Joily
Chief Excessive Officer
all of America's children. In 1988, as Study Director of the W.T. Grant
Results Management. Inc.
Commission on Work, Family and Citizenship, Dr. Halperin produced two
CERTRUD LENZER. PH.D.
Professor of Sociology
groundbreaking studies -- The Forgotten Half: Non-College Youth in
City University of New York
America and The Forgotten Half: Pathways to Success for America's
DALE LENENER
Esha Group LLC
Youth and Young Families. His latest work, The Forgotten Half Revisited,
RAE LINERSEY
published in 1998 by AYPF, is a fact-filled wake-up call for helping youth
KATHARINE L. PLOURDE
in the coming century.
Principal (Resired)
Donaldson. Luftin 3 Jenrette
MYRTIS H. POWELL. PH.D.
In 1992, he convinced seven foundations to fund the American Youth
Viry President of Student Affairs
Miami University of Ohio
Policy Forum, a professional development organization which he now
JOAN SPIVAK
Exceutive Vice President
co-directs. Its mandate is to bring policy-makers and legislators together
Edelman Public Relations
with the young people who need government services and with the
V.W. (JIM) STEWARD
Ambassador (Resired)
volunteers and professionals who are creating innovative programs to
STEPHEN B. TONER. Esq.
serve America's youth.
Serior Trial Altorney
Murphy is Higgins
DISNA J. WILKINSON
Dr. Halperin was nominated for the Hine Award by his colleague, George
Consultant
FLORA BARTH WOLD
R. Kaplan, a Bethesda, Maryland consultant specializing in focusing
Judge. Court of Common Please
attention on improving public education, who said, "Throughout his life,
Philodetphia County PA
Sam has been single-minded in his devotion to improving the lives of the
forgotten half' of America's children."
PRESIDENT/EXECUTIVE DIRECTOR
/EFFREY F. NEWMAN
VICE PRESIDENT/ DIRECTOR OF KAPOW
SUSAN R. LADNER
1501 Broadway Suite 1111 New York, New York 10036
GENERAL COUNSEL
DOMANNE BEYER
Tel: 212-840-1801 Fax: 212-768-0963 E-Mail: NCLCKAPOW @aol.com
PAGE 03
01/25/1999 16:31
2027759733
AYPF
NCLC, Halperin Release, p. 2
The Lewis Hine Awards, established in 1985, are named in memory of the early 20th
century sociologist and photographer Lewis W. Hine, whose over 5,000 stark and
disturbing images of the exploitation and abuse of children in dangerous, unhealthy
and stunting jobs all over the country was a major impetus to the passage of the
nation's first child labor laws. Mr. Hine documented much of the child labor problem
while working for the National Child Labor Committee from 1908 to 1920.
In addition to bestowing the Lewis Hine Award on five volunteers and five
professionals for their extraordinary service to America's children, the National Child
Labor Committee is also bestowing several special awards. Harry Belafonte, a world-
renown artist and humanitarian, will receive the NCLC's third Ronald H. Brown Award,
given annually to an American who has overcome prejudice and discrimination to
make a significant contribution to America's youth. Business leaders William C.
Steere, Jr., Chairman and CEO of Pfizer Inc., and John Eyler, Chairman and CEO of
F.A.O Schwarz, will each receive NCLC's Distinguished Service Award for their
corporate and personal commitments to supporting education and healthcare
initiatives for America's children. Larry J. Camerlin, President of Angel Flight NE, will
be honored for Innovation in the Service of Children for creating this nonprofit, all-
volunteer organization which flies critically ill children and their families free-of-charge
to hospitals for vital treatment.
The National Child Labor Committee was founded in 1904 and chartered by Congress
in 1907 to promote the rights, dignity and well-being of children and youth as they
relate to work, working and education. Today there are over 4 million young people
under 18 working - legally and illegally -- in the United States
"The work of Samuel Halperin amply embodies the ideals of NCLC and the Lewis
Hine Awards, said NCLC President and Executive Director Jeffrey F. Newman. "His
work and that of the other nine Hine Award honorees underscores the fact that
children and youth still need protection, education and positive expectations rather
than exploitation."