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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Low-Wage Workers and Public Assistance Programs

  • Fast-food workers cost taxpayers nearly $7 billion in welfare costs, By David Migoya, October 15, 2013, Denver Post: “Fast-food workers cost taxpayers nearly $7 billion in welfare costs each year, according to a study issued Tuesday by the University of California at Berkeley. That’s because the workers at restaurants such as Wendy’s and McDonald’s are forced onto the public dole from wages that are too low for them to get by, the study found. The study found that about 52 percent of fast-food workers receive some form of public assistance, compared with 25 percent of the general workforce. A similar study was also issued by the National Employment Law project…”
  • Public assistance for fast-food workers costs taxpayers, reports say, By Diane Stafford, October 15, 2013, Kansas City Star: “Low-paying jobs in the fast-food industry exact a multibillion-dollar cost on U.S. taxpayers, according to two national reports released Tuesday. U.S. taxpayers pay about $7 billion a year to support Medicaid, food stamps and other public assistance programs for fast-food workers who earn poverty-level wages, a team of university researchers said in one of the reports…”