PERI - Inflation and Paid Care Services in the U.S.

January 31, 2023 | Conference Paper

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Headline: Inflation’s Impact on Poor U.S. Families
Intro Text: PERI researcher Nancy Folbre explains why increases in average wages among the lowest deciles of the U.S. population are not likely to significantly buffer the effects of rapid inflation on families in poverty. This is because increases in wages at the bottom of the distribution for employees in childcare and eldercare can raise the costs and/or reduce the employment hours of low-income families that rely on these services. This paradox emerges from the heavy reliance on market-based paid care provision in the U.S., which, in effect, pits low-wage workers against low-income consumers. >> Research paper >> Non-technical summary article
Type of publication: Conference Paper
Research or In The Media: Research
Research Area: Finance, Jobs & Macroeconomics
Publication Date: 2023-01-31
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Authors:
- Add Authors: Nancy Folbre
Show in Front Page Modules: Yes

Inflation and Paid Care Services in the U.S.

This paper was presented as part of the "Global Inflation Today" conference at PERI, December 2022. For the full set of conference papers and conference commentary, video, and interviews, click here.

Nancy Folbre offers a number of reasons why increases in average wages among the lowest deciles of the population are not likely to significantly buffer the effects of rapid inflation on families with incomes below the poverty line. It also raises a number of specific questions for future research.

>> Also read Nancy Folbre's commentary "The Unfair Costs of Care," published as part of the American Prospect's "Great Inflation Myths" series.