Using company-owned housing and workfare to fill the need for low-wage workers: a solution or step backward?

Social WorkVol. 38 Nbr. 3, May 1993

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Using company-owned housing and workfare to fill the need for low-wage workers: a solution or step backward?

Employers across the United States, particularly in large eastern urban centers such as New York; Boston; and Washington, DC, are increasingly unable to attract entry-level workers (Putka, 1989). For example, businesses in Montgomery County, Maryland; New York City; and other affluent areas are confronted with an inadequate supply of workers to fill low-paying positions, mostly because entry-level workers cannot afford to pay rent and purchase other necessities with the low wages they receive.

Business groups and some conservative scholars have blamed the shortage of entry-level workers on an inadequate supply of affordable housing and the unwillingness of poor people to work (Anderson, 1978; Mead, 1989; Murray, 1984). These same groups and individuals argue that a combination of company-owned housing and workfare will help to fill the need for entry-level workers. Although these approaches may provide housing and fill jobs, it can also be argued that the workers would become increasingly isolated from the mainstream economy, would become more dependent on low wages for their future well-being, and would jeopardize their self-determination (Block, Cloward, Ehrenreich, & Piven, 1987; Piven & Cloward, 1971, 1982). Over time, the workers would trade off greater control of their lives in exchange for housing and minimal entitlements.

The pressing need on industry to employ entry-level workers has overshadowed concerns over the long-term effects of company-owned housing and workfare on the worker. Belcher and DiBlasio (1990) observed that "prior to the 1970s, there was agreement among many, both conservative and liberal, that it was appropriate for the federal government to intervene in housing issues". However, more recently, housing issue...

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