| September
7, 2006
Public Pays for Low-Wage Jobs, Say UIC Researchers
Low-wage jobs cost
Illinois taxpayers more than $2 billion a year inthe form of public
assistance programs that help working families meetbasic household
expenses, according to a new study by the Center forUrban Economic
Development at the University of Illinois at Chicago.
"
We began this study a year ago, long before Chicago's recentliving-wage
ordinance was introduced. The support for that kind oflegislation proves
that people are seeing how low wages affecteveryone, not just the low-wage
workers," said Nik Theodore, directorof the center.
The study documents the public cost of low-wage jobs held by year-roundworkers
in Illinois. Some employers, even in large, profitable sectors,take advantage
of Illinois' earned income tax credit, food stamps,Medicaid and child-care
subsidies, the researchers say.
"
These are essential programs that provide an indispensable safety netfor
working families. But when employers choose to pay low wages, theprograms'
worthy causes are subverted," Theodore said.
Among the findings:
- Public
benefits to working families total $2.2 billion, or 37 percent of all
public benefits
spending in Illinois.
- Two-thirds of workers
supporting families who receive public benefits earn $10 per hour or
less.
- Health services,
retail trade, and arts and entertainment are the largest employers
of public benefits recipients, accounting for 36 percent of all such
households and 39 percent of all public benefits paid to low-wage workers.
" In a
time of global competition, it's easy to believe that Illinois
must accept low wages in return for economic growth. But we do not," Theodore
said. "Employers locate in Illinois because of
its markets, workforce and connections to the national and
international economies."
Economic growth is a result of innovation, high-quality production and
the channeling of productivity increases into competitive advantage,
he said.
The report concludes that the public's understanding of the hidden costs
of low-wage work is crucial in evaluating economic development and ensuring
that public benefits programs remain viable. UIC ranks among the
nation's top 50 universities in federal research funding and is Chicago's
largest university with 25,000 students, 12,000 faculty and staff,
15 colleges and the state's major public medical center. The UIC College
of Nursing ranks in the top 10 among the nation's nursing colleges,
and consistently ranks in the top five
of federal research funding for nursing colleges and universities.
A hallmark of the UIC campus is the Great Cities Commitment, through
which UIC faculty, students and staff engage with community, corporate,
foundation and government partners in hundreds of programs to improve
the quality of life in metropolitan areas around the world. For more information
about UIC, visit www.uic.edu.
- UIC - |
