Using findings of the Panel Study of Income Dynamics (PSID), this report discusses how people become poor and why they stay that way. The PSID reveals that the requirements for getting out of poverty in the United States are so minimal that it takes a mutually reinforcing cluster of behaviors to remain in poverty, even for blacks and females. The…

Although the vast majority of single mothers do not fit the description of an underclass, there is a small group of predominantly black single mothers concentrated in northern urban ghettos that is persistently weakly attached to the labor force, socially isolated, and reproducing itself. Although welfare programs are necessary for those who are…