Name: Jace
Ethnicity: white
Gender: male
Disability: none
Age: 21
SES: low
Ethnicity: white
Gender: male
Disability: none
Age: 21
SES: low
Jace is a 21 year old white young adult who lives on the minimum wage by earning $6.15/hour at a Wendy's restaurant in Atlanta, Georgia. Having not been to college and having not completed his high school education, Jace has a comparatively low level of education and few marketable skills. He has been working at Wendy's since he was 17 and has not changed to other lines of work besides working at fast food chains. He is living on his own in a small rented apartment and is struggling to make ends meet. He comes from a low-income family.
What are the odds of Jace's socio-economic situation?
Earning below the federal minimum wage of $10.10, Jace is most likely to be living under the federal poverty line. As he is white, he defies the stereotype people hold of young white Americans as well-to-do, well-educated and living a comfortable life. He is among the 9.7% of whites who live in poverty. Statistics show that this is not surprising as poverty-wage workers tend to be younger; while workers age 18–25 form only 15.5 percent of the total workforce in 2011, they took up 35.5 percent of poverty-wage workers.
Because he did not complete his high school education, it is harder for him to get a job in today's competitive job market, so he has a low-paying job at a fast food chain. Fast food chains belong to the food preparation and serving sector which is the sector with the greatest number of workers earning a wage at or below the poverty level. However, he is luckier than people of colour or people from ethnic minorities his age who would be having a tougher time searching for jobs due to racial discrimination in the United States.
He may be able to break out of poverty since there is a better chance for social mobility for whites rather than blacks. One basis on which upward mobility is being measured would be making it to the middle class by middle age. 62% of whites meet the benchmark in early childhood, as compared to 41% of blacks. While there is no consistent trend for whites, throughout the five stages of life (early childhood, middle childhood, adolescence, transition into adulthood, adulthood), the success rates of blacks decrease steadily to 28% at adulthood, while that of whites remain around the same at 63%.
Earning below the federal minimum wage of $10.10, Jace is most likely to be living under the federal poverty line. As he is white, he defies the stereotype people hold of young white Americans as well-to-do, well-educated and living a comfortable life. He is among the 9.7% of whites who live in poverty. Statistics show that this is not surprising as poverty-wage workers tend to be younger; while workers age 18–25 form only 15.5 percent of the total workforce in 2011, they took up 35.5 percent of poverty-wage workers.
Because he did not complete his high school education, it is harder for him to get a job in today's competitive job market, so he has a low-paying job at a fast food chain. Fast food chains belong to the food preparation and serving sector which is the sector with the greatest number of workers earning a wage at or below the poverty level. However, he is luckier than people of colour or people from ethnic minorities his age who would be having a tougher time searching for jobs due to racial discrimination in the United States.
He may be able to break out of poverty since there is a better chance for social mobility for whites rather than blacks. One basis on which upward mobility is being measured would be making it to the middle class by middle age. 62% of whites meet the benchmark in early childhood, as compared to 41% of blacks. While there is no consistent trend for whites, throughout the five stages of life (early childhood, middle childhood, adolescence, transition into adulthood, adulthood), the success rates of blacks decrease steadily to 28% at adulthood, while that of whites remain around the same at 63%.
What are the reasons for Jace's situation?
Living on minimum wage
The fact that Jace is a minimum wage worker accounts for why he is struggling to make ends meet and why he is living under the federal poverty line. A hourly wage of $6.15 is a meagre sum which is inadequate to support a person. This is a problem many minimum wage workers face; the minimum wage is not equal to their living wage.
According to the Massachusetts Institute of Technology's Living Wage Calculator, a person living alone in Georgia, i.e. Jace, must earn $9.25 an hour to make ends meet. $9.25 would be the living wage which is defined as the hourly rate that an individual must earn to support their family, if they are the sole provider and are working full-time. For Jace, since he rents an apartment, he has to foot the water and electricity bills as well as pay rent. This would use up a major portion of his paycheck. Besides that, he also has to pay for food in order to sustain himself. The life of a minimum wage worker is thus hard where money is enough to barely make ends meet, with little or even no money left as leisure money and this is especially when, like Jace, parents are not offering financial support.
Rising housing costs also contribute to Jace's situation. Rents have risen by around 3% in 2013 over last year and are expected to increase even more, according to real estate research firm Reis. Housing is now not as affordable as before and for a young man like Jace, the rent for his apartment may increase to a point where he can no longer afford it. He may have to scrimp on other areas such as food to make ends meet and sustain himself.
Education
Jace did not manage to complete his high school education and since he is now working full time, he would most probably be unable to obtain a college degree in the near future. This contributes to his low socioeconomic status because education is the key to socioeconomic mobility. In general, the lower the family’s income quintile, the lower the chances the children have of ascending to a higher quintile. For Jace's case, having no college degree would further decrease his chances of moving up the socioeconomic ladder.
Statistics have shown that of the adults who grew up in low income families but earned college degrees, only 16 percent stayed in the lowest income quintile; of the adults who started in the lowest income quintile and did not manage to earn a college degree, 46 percent stayed there. Hence, due to the lack of education he has been through, Jace remains in the lowest quintile and has a slim chance of ascending to the higher quintiles.
Living on minimum wage
The fact that Jace is a minimum wage worker accounts for why he is struggling to make ends meet and why he is living under the federal poverty line. A hourly wage of $6.15 is a meagre sum which is inadequate to support a person. This is a problem many minimum wage workers face; the minimum wage is not equal to their living wage.
According to the Massachusetts Institute of Technology's Living Wage Calculator, a person living alone in Georgia, i.e. Jace, must earn $9.25 an hour to make ends meet. $9.25 would be the living wage which is defined as the hourly rate that an individual must earn to support their family, if they are the sole provider and are working full-time. For Jace, since he rents an apartment, he has to foot the water and electricity bills as well as pay rent. This would use up a major portion of his paycheck. Besides that, he also has to pay for food in order to sustain himself. The life of a minimum wage worker is thus hard where money is enough to barely make ends meet, with little or even no money left as leisure money and this is especially when, like Jace, parents are not offering financial support.
Rising housing costs also contribute to Jace's situation. Rents have risen by around 3% in 2013 over last year and are expected to increase even more, according to real estate research firm Reis. Housing is now not as affordable as before and for a young man like Jace, the rent for his apartment may increase to a point where he can no longer afford it. He may have to scrimp on other areas such as food to make ends meet and sustain himself.
Education
Jace did not manage to complete his high school education and since he is now working full time, he would most probably be unable to obtain a college degree in the near future. This contributes to his low socioeconomic status because education is the key to socioeconomic mobility. In general, the lower the family’s income quintile, the lower the chances the children have of ascending to a higher quintile. For Jace's case, having no college degree would further decrease his chances of moving up the socioeconomic ladder.
Statistics have shown that of the adults who grew up in low income families but earned college degrees, only 16 percent stayed in the lowest income quintile; of the adults who started in the lowest income quintile and did not manage to earn a college degree, 46 percent stayed there. Hence, due to the lack of education he has been through, Jace remains in the lowest quintile and has a slim chance of ascending to the higher quintiles.
What are the challenges Jace will face?
Food security
A direct impact of Jace's socio-economic situation is low food security. As his paycheck would most probably be only enough to pay off bills and rent, he would often have to scrimp on food, resulting in a decreased intake of nutritious food or food of great variety. This would in turn cause his health to deteriorate.
Mental Health
Due to the stressful situations that are associated with poverty, such as divorce, death, job loss, or drug addiction, Jace may experience feelings of anxiety and depression that can last well into adulthood. Especially when he is merely 21 and also since his parents are not around to give him emotional support, he may not be able to cope and may buckle under stress.
Limited access to healthcare
As Jace is unable to support himself well financially, he would be unable to afford health insurances and may thus be uninsured. Even though there are public health insurance such as Medicaid which is aimed to help families on low income, not every poor person is covered as the eligibility differs from state to state.
Furthermore, the healthcare cost in USA is increasing due to the rising costs of medical technology and prescription drugs and high administrative costs due to the multiple payer system. This would make it more difficult for Jace to purchase a health insurance plan for himself.
Food security
A direct impact of Jace's socio-economic situation is low food security. As his paycheck would most probably be only enough to pay off bills and rent, he would often have to scrimp on food, resulting in a decreased intake of nutritious food or food of great variety. This would in turn cause his health to deteriorate.
Mental Health
Due to the stressful situations that are associated with poverty, such as divorce, death, job loss, or drug addiction, Jace may experience feelings of anxiety and depression that can last well into adulthood. Especially when he is merely 21 and also since his parents are not around to give him emotional support, he may not be able to cope and may buckle under stress.
Limited access to healthcare
As Jace is unable to support himself well financially, he would be unable to afford health insurances and may thus be uninsured. Even though there are public health insurance such as Medicaid which is aimed to help families on low income, not every poor person is covered as the eligibility differs from state to state.
Furthermore, the healthcare cost in USA is increasing due to the rising costs of medical technology and prescription drugs and high administrative costs due to the multiple payer system. This would make it more difficult for Jace to purchase a health insurance plan for himself.
How can Jace cope?
Some federal policies have been put into place and these can possibly help alleviate Jace's current situation. To look at these policies, click on the links below.
Some federal policies have been put into place and these can possibly help alleviate Jace's current situation. To look at these policies, click on the links below.