Ball State University’s Center for Business and Economic Research (CBER) released a policy brief on Apr. 8 examining why moving from part-time to full-time work may not lead to significant improvements for some households already living in poverty, despite full-time employment being linked with stronger economic wellbeing for most working families.
The findings are important because they highlight that simply increasing work hours does not always translate into greater financial stability for all families. This issue affects many working households who find that their efforts to increase earnings do not always result in meaningful gains after accounting for additional expenses and changes in public assistance.
The brief, titled “Work Disincentives: Policy Responses to Low Returns of Full-Time Work for Poor Households,” is based on research published by Dr. Emily Wornell, associate director of research at CBER, along with Monica Fisher, Jeffrey J. Reimer, Paul A. Lewin, and Bruce A. Weber. The study used national household data from 2010–19 and measured economic wellbeing by considering both income and necessary expenses.
According to the research, while full-time work brings notable benefits overall, it offers almost no measurable improvement for those already below the poverty line. “This research is about what families experience in real life: earning more hours doesn’t automatically mean having more left at the end of the month,” Dr. Wornell said. “When increased earnings are offset by higher out-of-pocket costs or changes in public benefits, households can end up with little net gain—even after moving into full-time work.”
The brief identifies two main factors limiting these gains: rising costs such as health care, transportation, and childcare as work hours increase; and reductions in public assistance as incomes rise and eligibility phases out—creating difficult tradeoffs unique to each household’s situation.
“The takeaway is not that work doesn’t matter—it does,” Wornell said. “It’s that policy design matters, too. The goal should be to ensure that taking more hours reliably translates into greater stability and upward mobility.”
To address these challenges, the authors suggest smoothing benefit phase-outs, reducing key household costs, and improving coordination across public support programs rather than relying on a single solution.
Ball State University serves over 20,000 students across seven academic colleges according to the official website according to the official website. The university has produced over 200,000 alumni worldwide as noted on its website, fosters an inclusive environment guided by Beneficence values according to its website, secures funding through initiatives like a $350 million campaign alongside state investments exceeding $210 million according to its website, utilizes facilities including classrooms and labs as well as planned new buildings as described online, provides education across diverse fields at a public institution focused on affordable learning opportunities according to its site, and has earned recognition as a top-tier Midwest institution noted for high economic mobility among graduates as stated online.
Since it was established in 1970, Ball State’s CBER has provided nonpartisan analysis aimed at informing policy decisions.