ABSTRACT
This chapter examines the relationship between trends in family composition, labor market institutions, social policy, and their impact on poverty among children and the working-age population. It discusses the relationship between social developments in the United States and those in Europe, especially with respect to developments that have changed the composition of households and hurt the employment prospects available to young and other unskilled workers. US assistance policy for the working-age population is aimed at reducing severe financial, nutritional, and medical deprivation among children and physically and mentally handicapped adults. The chapter also examines public policies established to address the problem of working-age poverty, including new policies to reduce the problem of long-term public dependency. It discusses the impact of household compositional shifts on the prevalence of poverty in the United States. The chapter considers the impact of public tax and transfer policies on the level and distribution of hardship.
