1

Demographic Programs

U.S. Census Bureau

U S C E N S U S B U R E A U

Helping You Make Informed Decisions

U.S. Department of Commerce

Economics and Statistics Administration

U.S. CENSUS BUREAU

P70-76

Reasons People Do Not Work

Household Economic Studies Issued July 2001

Current

Population

Reports

By

Mai Weismantle

1996

Introduction workers for at least 4 consecutive months in

the first half of 1996.4

In 1996, the U.S. economy entered its

fourth year of expansion, accompanied by The data in this report provide insight into an increase in the rate of job growth and a the identification and potential availability of decline in unemployment.1 From Septem- nonworkers during a period of tightening la- ber 1992, when the expansion began, to bor markets. The size and composition of August 1996, the national unemployment this pool of potential workers reflect a rate decreased from 7.6 percent to 5.1 per- balance between the pressures and induce- cent, and the percentage of civilians who ments for people to enter the labor force were employed increased from 63.0 per- (such as the need to support oneself or a cent to 65.0 percent.2

family, or to obtain health insurance coverage) and the obstacles and personal needs Even during this period of rapid economic that prevent or discourage their labor force growth, of course, not all people of working participation. This report examines relation- age (15 years and over) had jobs. Many, in

3 ships between reasons for not working and fact, were nonworkers for extended periods life-cycle events such as schooling, raising a of time. This report uses data from the family, and aging. It also investigates how 1996 Survey of Income and Program Partici- the reasons for not working vary in impor- pation (SIPP) to examine the main reason for tance among selected groups of nonworkers not working given by people who were non- and examines the rates of health insurance

coverage and participation in government assistance programs among these nonworkers.

1William C. Goodman and Randy E. Ilg, “Employment in

1996: Jobs Up, Unemployment Down,” Monthly Labor Review, Vol. 120, No. 2, February 1997, p.1. 4SIPP is a longitudinal survey that follows the same in- 2U.S. Bureau of Labor Statistics, Labor Force Statistics dividuals over time. The survey is conducted in waves of

from the Current Population Survey, generated by Mai 4 months’ duration. Data are collected from one-fourth of

Weismantle, http://146.142.4.24/cgi-bin/surveymost?bls, the sample members in each month of a wave. Sample

(August 20, 1999). members are asked about activities during the 4 months 3A nonworker is someone who is either (a) unem- prior to the interview, which is known as the “reference

ployed (on layoff from a job, or without a job but actively period.” These data were collected during wave 1 of the

seeking employment) or (b) not in the labor force (not 1996 SIPP; interviews were conducted from April-July

employed and not seeking employment). Nonworkers in 1996 in four separate rotation groups. The nonworkers

this report answered “No” to all of the following survey who are the focus of this report are people who did not

questions: “Did you have at least one paid job, either full work at any time in the 4 months prior to the month they

or part time, at anytime in the past 4 months? Count ac- were interviewed, periods which ranged from December

tive duty in the Armed Forces as a paid job.”; “Did you do 1995 through March 1996 to March 1996 through June

any work at all that earned some money?”; “Did you do 1996. Some were members of the country’s labor force

any unpaid work in a family business or farm?” for at least part of the 4 months, even though they did

not work, because they were on layoff from jobs, or they

had been looking for work.
2 U.S. Census Bureau

These data were collected shortly

before the passage of the Personal

Responsibility and Work Opportunity Reconciliation Act of 1996,

also known as the Welfare Reform

Act. Thus the data, particularly on

participation in government transfer programs, may provide a valuable snapshot of the nonworking

population in the last months just

before welfare reform.5

The figures in this report were collected in response to the question,

“What is the main reason you did not

work at a job or business [in the last

4 months]?” Respondents were

asked to select 1 of 11 categories

consisting of economic and noneconomic reasons for not working. Reasons related to the economy were

“unable to find work” and “on layoff.”

Noneconomic reasons included the

health-related categories, “unable to

work because of a chronic health

condition or disability,” “pregnancy/

childbirth,” “temporarily unable to

5Welfare reform legislation took effect on

October 1, 1996, only 6 months after interviewing for the 1996 SIPP panel started. However, several states had already begun to make

changes to their welfare programs under federal program waivers during the 1990-95 time

period.

work because of an injury,” or “temporarily unable to work because of

an illness.” The noneconomic, voluntary reasons were “going to

school,” “retired,” “taking care of children or others,” and “not interested

in working at a job.” The final category was the residual “other.”6

Focusing the question on the main

reason for not working affects how

responses are interpreted. For example, one should not assume that

all retired nonworkers were able to

work or that they did not want

6Respondents who selected the “other” category were asked to describe the specific reason they did not work. Their responses generally fell within one of five categories: preferred

nonpaid work (volunteer, church, nonprofit,

homemaker); met with barriers to obtaining

work (no work permit, cannot speak English,

cannot drive a car); were preparing for work

(getting ready to start a new business, in training); experienced a change in business conditions (business closed down or relocated); and

chose to take time off from work (did not

want/need to work, recovering from a death in

the family, already receive income from government assistance or other sources). Many

people who report “other” reasons likely fall

under the heading of “discouraged workers” —

people who are not in the labor force (without

jobs and not looking for work), but who have

demonstrated some labor force attachment;

that is, they want and are available for a job

and they have looked for work in the last 12

months, but are not currently looking for work

because they believe there are no jobs available or none they qualify for.

jobs. Some may have retired because of a chronic health condition

or disability or because they were

unable to find work.

Highlights

• Of people 15 years and older living in the United States7 in the

first half of 1996, approximately

69 million, or 34 percent, did

not work at a paid job for 4 consecutive months.

• Nearly 2 out of 5 nonworkers

(39 percent) were retired, and

about 1 in 6 (17 percent) were

going to school.

• For people 25-44 years of age,

taking care of children or others

was the main factor for not

working at a paid job (43 percent), a reflection of the importance of this reason among

women, who make up nearly

three-fourths (72 percent) of the

nonworkers in this age group.

• Approximately 1 in 3 nonworkers (35 percent) 45-54 years old

7Specifically, the noninstitutional resident

population of the United States, excluding

Puerto Rico.

Table 1.

Main Reason Adults Did Not Work: 1996

(Numbers in thousands)

Reason

Age 15 and over Age 20 to 64 years

Number

of people Percent

Standard error

of percent

Number

of people Percent

Standard error

of percent

Total.............................

Unable to find work..................

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . . .

Temporary injury or illness. ...........

Chronic illness/disability ..............

Pregnancy/childbirth .................

Retired. . . ..........................

Going to school .....................

Taking care of children/others .........

Not interested in working . . . ..........

Other ..............................

69,150

2,667

708

1,409

9,638

663

26,946

11,917

9,214

3,549

2,439

100.0

3.9

1.0

2.0

13.9

1.0

39.0

17.2

13.3

5.1

3.5

(NA)

0.137

0.071

0.100

0.246

0.069

0.346

0.268

0.241

0.156

0.131

32,081

2,292

681

1,234

7,216

570

4,298

3,138

8,534

2,471

1,647

100.0

7.1

2.1

3.8

22.5

1.8

13.4

9.8

26.6

7.7

5.1

(NA)

0.268

0.150

0.200

0.435

0.138

0.355

0.309

0.460

0.278

0.230

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
U.S. Census Bureau 3

did not work because of a • Approximately 1 in 5 nonwork- first half of 1996. Table 1 and Figchronic illness or disability. ers (22 percent) 20 to 64 years ure 1 show the distribution of the

old were not covered by health main reasons for not working.

• Men were more likely than insurance.

women to be out of work be- Retirement (39 percent) and school

cause of retirement or schooling. • Approximately 1 in 10 nonwork- attendance (17 percent) were the

ers (10 percent) received Federal most commonly reported reasons.

• Adults with at most a high Supplemental Security Income Chronic illness or disability was the

school diploma were much more (SSI) benefits, compared with main reason for almost 1 in 7 nonlikely than those with at least 2 percent of the total population workers (14 percent). Taking care

some college education not to age 20 to 64 years old. of children or others accounted for

work because of a chronic ill- 13 percent of nonworkers. Apness or disability. About One-Third of proximately 5 percent cited an ecoPeople 15 Years and Older nomic reason as their main factor

• Among never-married nonwork- Do Not Work for not working: 1 percent were on ers, the most common reason layoff and almost 4 percent were for not working was school at- Of the estimated 205 million unable to find work. Another

tendance; chronic illness or dis- people age 15 years and older, ap- 5 percent of nonworkers were not ability was a close second. proximately 69 million (34 percent) interested in working. did not work at a paid job for at

least 4 consecutive months in the

Figure 1.

Nonworkers by Age and Main Reason for Not Working: 1996 

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

3.9

1.0 2.0

13.9

1.0

39.0

17.2

13.3

5.1 3.5

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

15 years and older

7.1

2.1 3.8

22.5

1.8

13.4

9.8

26.6

7.7

5.1

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

20-64 years old
4 U.S. Census Bureau

Reasons for Not Working Not surprisingly, most (87 percent) participating in the work force. It

Vary With Age and Life- nonworking teenagers (15-19 years was cited by the largest proportion

Cycle Events old) cited “going to school” as their (43 percent) of nonworkers 25 to

main reason for not working. This 44, reflecting the importance of Age is generally correlated with

was also the most common reason child-rearing responsibilities among life-cycle events, such as pursuing

for 20 to 24 year-olds who did not women, who made up nearly three- an education, starting a family, exwork (43 percent). fourths (72 percent) of the non- periencing an “empty nest,” and

workers in this age group. Taking being able to retire with a pension. For nonworkers in the prime repro- care of children or others was also These events obviously tend to in- ductive and family-rearing age the second most common reason fluence a person’s decision to work. groups — 20 to 24 years, 25 to 44 for nonworkers in the 20 to 24 Table 2 examines some of the rela- years, and 45 to 54 years — taking group (22 percent) and in the 45 to tionships between reasons for not

working and age. care of children or others was an 54 group (21 percent, however,

especially significant reason for not

Table 2.

Main Reason Adults Did Not Work by Age: 1996

Reason

Total

Age in years

15 to 19 20 to 24 25 to 44 45 to 54 55 to 64 65 and over

Total (thousands) ..................

Unable to find work. . . . . . . .............

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Temporary injury or illness . . ...........

Chronic illness/disability. . . . . . ..........

Pregnancy/childbirth . . . . ...............

Retired...............................

Going to school . . .....................

Taking care of children/others. ..........

Not interested in working...............

Other ................................

Total . .............................

69,150

2,667

708

1,409

9,638

662

26,946

11,917

9,214

3,550

2,439

100.0

10,039

316

19

38

163

93

0

8,772

223

183

232

4,127

456

74

50

271

266

0

1,790

907

157

156

13,490

1,272

378

703

2,417

298

98

1,168

5,807

617

732

5,876

358

149

268

2,073

5

395

158

1,255

823

392

8,586

206

80

213

2,455

0

3,804

22

565

874

367

27,032

59

8

137

2,259

0

22,649

7

457

896

560

Percent

100.0 100.0 100.0 100.0 100.0 100.0

Unable to find work. . . . . . . ............. 3.9 3.1 11.0 9.4 6.1 2.4 0.2

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 0.2 1.8 2.8 2.5 0.9 0.0

Temporary injury or illness . . ........... 2.0 0.4 1.2 5.2 4.6 2.5 0.5

Chronic illness/disability. . . . . . .......... 13.9 1.6 6.6 17.9 35.3 28.6 8.4

Pregnancy/childbirth . . . . ............... 1.0 0.9 6.4 2.2 0.1 0.0 0.0

Retired............................... 39.0 0.0 0.0 0.7 6.7 44.3 83.8

Going to school . . ..................... 17.2 87.4 43.4 8.7 2.7 0.3 0.0

Taking care of children/others. .......... 13.3 2.2 22.0 43.0 21.4 6.6 1.7

Not interested in working............... 5.1 1.8 3.8 4.6 14.0 10.2 3.3

Other ................................

Total . .............................

Unable to find work. . . . . . . .............

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Temporary injury or illness . . ...........

Chronic illness/disability. . . . . . ..........

Pregnancy/childbirth . . . . ...............

Retired...............................

Going to school . . .....................

Taking care of children/others. ..........

Not interested in working...............

Other ................................

3.5

(NA)

0.137

0.071

0.100

0.246

0.069

0.346

0.268

0.241

0.156

0.131

2.3 3.8 5.4 6.7 4.3 2.1

Standard error of percent

(NA)

0.325

0.081

0.114

0.235

0.178

0.000

0.618

0.274

0.249

0.280

(NA)

0.910

0.385

0.317

0.719

0.713

0.000

1.438

1.202

0.555

0.553

(NA)

0.469

0.265

0.357

0.616

0.236

0.136

0.451

0.795

0.335

0.364

(NA)

0.582

0.382

0.507

1.162

0.071

0.609

0.393

0.997

0.844

0.607

(NA)

0.308

0.193

0.313

0.909

0.000

0.999

0.102

0.499

0.608

0.407

(NA)

0.053

0.020

0.081

0.314

0.000

0.418

0.018

0.146

0.203

0.162

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
U.S. Census Bureau 5

these two percentage points were groups. “Taking care of children or years. Figure 1 shows the distribunot statistically significantly differ- others” increases from 22 percent tion of these 20 to 64 year-old nonent from each other). Surprisingly, for the 20 to 24 group, peaks at workers by reason for not working.

18 percent of 25-44 year olds did 43 percent of the 25 to 44 group,

not work because of chronic illness falls to 21 percent of the 45 to 54 Chronic Illness Most Likely

or disability. group, then declines below 10 per- to Be Cited by Men While

cent for ages 55 and above. Child-Rearing Is Principal For nonworkers over age 44, health Health-related reasons increase in Reason Among Women

and retirement were the dominant prominence with age, but begin to As Table 3 and Figure 2 show, reasons for not working. The pro- decline for people 55 years and “chronic illness or disability” was portion of people citing these rea- over as retirement dominates the the most common reason for not sons ranged from 47 percent for distribution. working (34 percent) among men the 45 to 54 group to 93 percent of 20 to 64 years old, followed by re- nonworkers 65 years and over. Re- As Table 2 shows, a very large tirement (20 percent) and the eco- tirement was the overwhelming number of nonworkers 15 to 19

nomic reasons “on layoff” or “un- reason given by nonworkers years old were “going to school,” able to find work” (17 percent 65 years and over (84 percent). and an even larger number of non- combined). Still, 14 percent of workers 65 years and over were

The data in Table 2 are cross-sec- men were going to school, possibly “retired.” Together, these two

tional estimates and are not in- to pursue advanced degrees or ac- groups make up almost half of all

tended to predict how reasons for quire up-to-date skills. For women, nonworkers (45 percent). This

not working will change for any “taking care of children or others” overwhelming dominance makes it

particular cohort. Nevertheless, was the chief reason for not work- difficult to discern the relationships

comparisons across age groups re- ing (39 percent), followed by between reasons for not working

veal how the prevalence of a rea- chronic illness (17 percent). and characteristics other than age.

son varies by age. For example, To remove the effects of the Men were more likely than women the significance of “going to school-age and retirement popula- to not work because of retirement school” declines rapidly from the tions, the remainder of this report or schooling, even after removing teenage years and continues to will focus on nonworkers in the the upper and lower age groups diminish across the older age prime working ages of 20 to 64

Table 3.

Main Reason Adults (Age 20 to 64) Did Not Work by Sex: 1996

Reason

Including taking care of children/others Excluding taking care of children/others

Percent Standard error

of percent Percent Standard error

of percent

Male Female Male Female Male Female Male Female

Total ........................... 100.0 100.0 (NA) (NA) 100.0 100.0 (NA) (NA)

Unable to find work . . . . ............ 12.9 4.3 0.606 0.257 13.3 6.9 0.621 0.413

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . 4.0 1.2 0.353 0.138 4.1 1.9 0.362 0.224

Temp. injury/illness................. 5.6 3.0 0.414 0.217 5.7 4.9 0.425 0.350

Chronic illness/disability ............ 34.2 16.7 0.856 0.475 35.1 27.1 0.873 0.723

Pregnancy/childbirth . . ............. 0.0 2.7 0.000 0.205 0.0 4.3 0.000 0.331

Retired . .......................... 19.5 10.3 0.715 0.388 20.0 16.8 0.732 0.609

Going to school . . . ................ 13.7 7.8 0.621 0.342 14.1 12.7 0.636 0.542

Taking care of children/others . . ..... 2.6 38.6 0.286 0.620 0.0 0.0 0.000 0.000

Not interested in working . .......... 2.2 10.4 0.265 0.390 2.3 17.0 0.272 0.611

Other. . ........................... 5.3 5.1 0.404 0.279 5.4 8.2 0.414 0.447

Number of people (thousands) . . . . 10,668 21,411 (NA) (NA) 10,393 13,152 (NA) (NA)

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
6 U.S. Census Bureau

Figure 2.

Nonworkers Age 20 to 64 by Sex and Main Reason for Not Working: 1996

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

12.9

4.0 5.6

34.2

19.5

13.7

2.6 2.2

5.3

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Men

4.3

1.2 3.0

16.7

2.7

10.3

7.8

38.6

10.4

5.1

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Women

Table 4.

Main Reason Adults (Age 20 to 64) Did Not Work by Race and Hispanic Origin: 1996

Reason

Percent Standard error of percent

White

nonHispanic BlackOther1 race Hispanic2

White

nonHispanic BlackOther1 race Hispanic 2

Total ........................... 100.0 100.0 100.0 100.0 (NA) (NA) (NA) (NA)

Unable to find work ................ 4.9 13.7 9.0 10.1 0.277 1.012 1.550 1.086

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.5 1.3 2.4 0.185 0.457 0.621 0.547

Temporary injury or illness .......... 3.2 5.9 3.8 4.6 0.226 0.695 1.033 0.750

Chronic illness/disability ............ 21.9 32.3 14.5 17.2 0.533 1.377 1.906 1.358

Pregnancy/childbirth . . ............. 1.3 2.2 1.5 3.5 0.148 0.431 0.668 0.665

Retired ........................... 17.6 6.9 6.6 3.3 0.490 0.745 1.345 0.646

Going to school . . . . ............... 9.3 9.8 22.3 6.5 0.374 0.876 2.250 0.886

Taking care of children/others ....... 25.3 18.1 30.1 42.1 0.560 1.136 2.481 1.777

Not interested in working . . ......... 9.4 3.7 4.4 5.2 0.376 0.553 1.113 0.801

Other............................. 5.1 5.0 6.4 5.1 0.283 0.644 1.319 0.793

Number of people (thousands) .... 20,954 5,312 1,873 4,435 (NA) (NA) (NA) (NA)

NA Not applicable.

1

Races other than White or Black.

2

May be of any race.

Note: Detail may not add to total because of round

Source: U.S. Census Bureau, Survey of Income an

ing.

d Program Participation, April-July 1996.
U.S. Census Bureau 7

Figure 3.

Nonworkers Age 20 to 64 by Race and Hispanic Origin and 

Main Reason for Not Working: 1996 

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

4.9

2.1 3.2

21.9

1.3

17.6

9.3

25.3

9.4

5.1

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Non-Hispanic White

13.7

2.5

5.9

32.3

2.2

6.9

9.8

18.1

3.7 5.0

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Black

9.0

1.3

3.8

14.5

1.5

6.6

22.3

30.1

4.4

6.4

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Other race

10.1

2.4 4.6

17.2

3.5 3.3

6.5

42.1

5.2 5.1

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Hispanic
8 U.S. Census Bureau

(15-19 and 65 years and over) from

the analysis. Women, on the other

hand, were much more likely than

men not to work because of dependent care responsibilities (39 percent of women compared with only

3 percent of men). Women nonworkers were five times more likely

than men to cite being “not interested in working” (10 percent of

women and only 2 percent of men).

The great disparity between men

and women in the category “taking

care of children or others” may obscure important findings in the comparisons. When this category is removed, a new picture of menwomen nonworker differences

emerges. While this did not significantly affect the reasons men did not

work, chronic illness becomes the

most important reason for both

women (27 percent) and men

(35 percent). Retirement also becomes a prominent reason for

women (17 percent). But the difference between men and women who

cited “not interested in working” is

even more pronounced when excluding the “taking care of children or

others” category: approximately

17 percent of women compared with

2 percent of men. A considerable

gap exists between men and women

in the economic reasons categories:

men were about twice as likely as

women not to have worked because

they were unable to find work or on

layoff (17 percent compared with 9

percent).

Reasons Vary Among

Racial Groups and by

Hispanic Origin

As Table 4 and Figure 3 show, childrearing (including other dependent

care) was the most common reason

cited for not working (42 percent)

among Hispanics8 20 to 64 years

old. For Blacks, chronic illness or

disability was the dominant reason

(32 percent) for not working, reflecting higher rates of chronic illness9

and severe disabilities10 among

Blacks in general. In 1996, Blacks

had a higher rate of death than

people of other races for most major

illnesses, including cardiovascular

disease, stroke, cancer, and diabetes.11 Other important reasons

Blacks cited for not working included

“taking care of children or others”

(18 percent) and being “unable to

find work” (14 percent). White 

non-Hispanics were more than twice

as likely as Blacks and Hispanics not

to work because of retirement.

Child-Rearing Is an

Important Reason for Not

Working Among Married

Couples

As Figure 4 shows, married people

were over twice as likely as those

who were divorced or never

8Hispanics may be of any race.

9National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease

Control and Prevention, “About Chronic Disease,” last revised August 11, 1999, http://

www.cdc.gov/nccdphp/about.htm 10John McNeil, Current Population Reports,

Household Economic Studies, “Americans With

Disabilities: 1997,” P70-73, Table 1. 11National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, “Chronic Diseases

and Their Risk Factors: The Nation’s Leading

Causes of Death,” December 1999.

married to be out of the workforce

because of child-rearing responsibilities. People who were divorced,

separated, or widowed had a

higher chance of not working because of a chronic illness or disability than people who were married

or had never been married (see

Table 5).

Of those never married, the most

common reason for not working

was school attendance (28 percent), but chronic illness was also a

major factor (25 percent). Among

divorced or separated people, having a chronic illness or disability

was by far the most common reason for not working (40 percent),

with taking care of children or others a distant second (15 percent).

People With Less Education

Show a Higher Chance of

Not Working Because of

Illness or Disability

For working-age people (20 to 64

years old) with a high school diploma and no further formal education, “taking care of children or others” was the predominant reason

for not working (27 percent), followed by chronic illness (23 percent), as seen in Table 6. Among

nonworkers with a bachelor’s degree, child-rearing (including other

dependent care) was the most

common reason for not working

(32 percent) followed by going to

school and retirement (19 percent
U.S. Census Bureau 9

Figure 4.

Nonworkers Age 20 to 64 by Marital Status and Main Reason for Not Working: 1996

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

4.0

2.0 3.0

15.8

1.9

17.5

3.5

36.4

10.8

5.1

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Married 

3.2

0.3

3.8

39.9

0.4

27.1

1.6

12.5

7.4

3.7

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Widowed 

8.7

2.6

6.4

40.2

1.1

10.9

5.7

15.4

3.4

5.6

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Divorced/separated

14.3

2.5 4.3

25.0

2.2 2.6

28.4

12.6

2.9

5.2

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Never married
10 U.S. Census Bureau

Figure 5.

Nonworkers Age 20 to 64 by Education Level Completed and 

Main Reason for Not Working: 1996 

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

8.2

2.1

4.9

34.0

1.8

9.5

2.1

27.1

5.9 4.4

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Less than a high school education

7.7

2.2 3.8

22.6

2.2

15.0

3.6

27.1

10.4

5.4

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

High school diploma
U.S. Census Bureau 11

Figure 5.

Nonworkers Age 20 to 64 by Education Level Completed and 

Main Reason for Not Working: 1996—Con.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

5.5

2.0 3.8

16.4

1.6

12.9

22.8 23.7

6.3 5.2

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Some college or a 2-year degree

6.1

2.2 1.8

7.8

1.0

16.6

19.3

31.9

7.5 5.6

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Bachelor's degree

7.2

1.6 0.9

10.3

0.8

26.1

15.6

24.2

6.6 6.7

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Graduate degree
12 U.S. Census Bureau

Table 5.

Main Reason Adults (Age 20 to 64) Did Not Work by Marital Status: 1996

Reason

Percent Standard error of percent

Married Widowed

Divorced/

separated

Never

married Married Widowed

Divorced/

separated

Never

married

Total ........................... 100.0 100.0 100.0 100.0 (NA) (NA) (NA) (NA)

Unable to find work ................ 4.0 3.2 8.7 14.3 0.271 0.867 0.789 0.736

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 0.3 2.6 2.5 0.192 0.290 0.443 0.329

Temporary injury or illness .......... 3.0 3.8 6.4 4.3 0.235 0.945 0.687 0.429

Chronic illness/disability ............ 15.8 39.9 40.2 25.0 0.502 2.410 1.372 0.911

Pregnancy/childbirth . . ............. 1.9 0.4 1.1 2.2 0.186 0.318 0.293 0.308

Retired . . ......................... 17.5 27.1 10.9 2.6 0.523 2.188 0.873 0.333

Going to school . .................. 3.5 1.6 5.7 28.4 0.251 0.618 0.648 0.949

Taking care of children/others . . . .... 36.4 12.5 15.4 12.6 0.662 1.630 1.009 0.699

Not interested in working . . ......... 10.8 7.4 3.4 2.9 0.427 1.287 0.504 0.354

Other. . ........................... 5.1 3.7 5.6 5.2 0.303 0.928 0.644 0.467

Number of people (thousands) . . . . 18,366 1,435 4,437 7,843 (NA) (NA) (NA) (NA)

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

Table 6.

Main Reason Adults (Age 20 to 64) Did Not Work by Education Level Completed: 1996

Reason

Percent Standard error of percent

Less

than high

school

completion

High

school

diploma

Some

college/

2-year

degree or

certificate

Bachelor’s

degree

Graduatelevel or

professional

degree

Less

than high

school

completion

High

school

diploma

Some

college/

2-year

degree or

cerificate

Bachelor’s

degree

Graduatelevel or

professional

degree

Total................. 100.0 100.0 100.0 100.0 100.0 (NA) (NA) (NA) (NA) (NA)

Unable to find work. . . . . . 8.2 7.7 5.5 6.1 7.2 0.539 0.473 0.475 0.827 1.490

On layoff . . . . . . . . . . . . . . .

Temporary injury or

2.1 2.2 2.0 2.2 1.6 0.283 0.263 0.290 0.507 0.730

illness. ................ 4.9 3.8 3.8 1.8 0.9 0.424 0.339 0.400 0.463 0.533

Chronic illness/disability . . 34.0 22.6 16.4 7.8 10.3 0.928 0.742 0.770 0.924 1.757

Pregnancy/childbirth ..... 1.8 2.2 1.6 1.0 0.8 0.263 0.259 0.258 0.341 0.503

Retired. ................ 9.5 15.0 12.9 16.6 26.1 0.573 0.633 0.698 1.281 2.533

Going to school . . . ......

Taking care of

2.1 3.6 22.8 19.3 15.6 0.279 0.330 0.873 1.360 2.094

children/others . . . ...... 27.1 27.1 23.7 31.9 24.2 0.871 0.789 0.885 1.606 2.473

Not interested in working . 5.9 10.4 6.3 7.5 6.6 0.461 0.542 0.504 0.909 1.434

Other ..................

Number of people

4.4 5.4 5.2 5.6 6.7 0.401 0.403 0.461 0.791 1.443

(thousands). .......... 9,051 11,033 8,020 2,931 1,044 (NA) (NA) (NA) (NA) (NA)

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
U.S. Census Bureau 13

and 17 percent, respectively, however they are not statistically significantly different).

Adults with at most a high school

diploma were much more likely

than those with at least some college education not to work because

of a chronic illness or disability.

This difference may reflect the risks

associated with occupations —

such as mechanics, machinists,

construction workers, electricians,

and plumbers — often reported by

people with less education.12 Alternately, a chronic illness or disability

might hinder continuation of

schooling. Nonworkers with

12U.S. Census Bureau, Current Population Reports, Population Characteristics, “Educational

Attainment in the United States: March 1998

(Update),” P20-513, Table 7, p. 38-41. The

most common occupation group for men with

an educational attainment up to a high school

diploma is precision production, craft, and repair.

graduate and professional degrees

were more likely to report retirement (26 percent) as the reason for

not working than those with lower

education levels.

Nonworkers Are Mostly

Covered by Medicare or

Employment-Based Health

Insurance Through Others

As Table 7 shows, 22 percent of

nonworkers age 20 to 64 years old

were not covered by health insurance. Only about half of those

people unable to find work or on

layoff were covered by health insurance (47 percent and 50 percent,

respectively, however, they are not

statistically significantly different),

while most retired people were covered (92 percent).

Approximately 53 percent of nonworkers (17 million people) were

covered by private insurance,

either purchased individually or obtained through the employment of

a relative. (People may have more

than one type of health insurance.)

Approximately 24 percent (8 million) of nonworkers were covered

by Medicaid.

As Table 8 and Figure 6 show, a

high proportion of nonworkers covered by Medicare or Medicaid had a

chronic illness or disability (79 percent and 46 percent, respectively).

About a quarter (28 percent) of

nonworkers covered by private insurance were taking care of children or others. Interestingly,

11 percent of nonworkers with private insurance reported they were

not interested in working, possibly

because they were already covered

and did not need a job to acquire

insurance.

Table 7.

Health Insurance Coverage of Adults Who Did Not Work by Main Reason

For Not Working : 1996

Reason

Age 15 and over Age 20 to 64 years

Percent Standard error

of percent Percent Standard error

of percent

Covered

Not

covered Covered

Not

covered Covered

Not

covered Covered

Not

covered

Total . . . . ....................... 87.1 12.9 0.320 0.831 77.9 22.1 0.614 1.154

Unable to find work . . . . ............ 49.4 50.6 0.477 1.237 46.7 53.3 0.739 1.387

On layoff . . . . . . . . . . . . . . . . . . . . . . . . . 51.4 48.6 0.477 1.237 49.8 50.2 0.740 1.390

Temporary injury or illness .......... 71.2 28.8 0.432 1.121 68.5 31.5 0.688 1.292

Chronic illness/disability ............ 90.2 9.8 0.283 0.734 87.4 12.6 0.491 0.922

Pregnancy/childbirth . . . . . .......... 85.3 14.7 0.337 0.875 84.9 15.1 0.530 0.996

Retired . .......................... 98.4 1.6 0.121 0.314 91.6 8.4 0.411 0.771

Going to school . . . ................ 82.1 17.9 0.366 0.949 75.8 24.2 0.634 1.190

Taking care of children/others ....... 78.5 21.5 0.392 1.017 77.5 22.5 0.618 1.160

Not interested in working ........... 83.0 17.0 0.359 0.930 78.2 21.8 0.611 1.148

Other. . ........................... 73.6 26.4 0.421 1.091 65.5 34.5 0.704 1.321

Number of people (thousands) . . . . 60,199 8,950 (NA) (NA) 24,993 7,087 (NA) (NA)

NA Not applicable.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
14 U.S. Census Bureau

Table 8.

Type of Health Insurance Coverage For Adults Who Did Not Work: 19961

Reason

Age 15 years and over Age 20 to 64 years

MedicareMedicaid

Private

insuranceMilitaryrelatedAny

type

MedicareMedicaid

Private

insuranceMilitaryrelatedAny

type

Total..........................

Percent

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Unable to find work. . . ............ 0.3 4.7 1.7 1.8 2.2 0.9 6.3 3.5 3.6 4.3

On layoff . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.4 0.7 0.4 0.6 0.0 0.7 1.7 1.0 1.4

Temporary injury or illness. . . . ..... 0.8 3.9 1.1 0.6 1.7 3.8 5.6 2.3 1.5 3.4

Chronic illness/disability ........... 15.7 35.8 7.9 17.9 14.4 79.1 46.2 13.7 28.3 25.2

Pregnancy/childbirth .............. 0.0 3.0 0.5 0.8 0.9 0.1 4.1 1.1 1.2 1.9

Retired. ......................... 76.7 14.7 49.0 56.6 44.0 13.4 2.1 21.9 30.5 15.8

Going to school . . . ............... 0.1 15.1 18.4 6.6 16.2 0.6 5.7 11.7 8.1 9.5

Taking care of children/others. . .... 1.5 17.5 11.8 7.7 12.0 0.8 25.0 28.3 15.7 26.5

Not interested in working . . ........ 2.9 1.5 6.0 4.2 4.9 0.6 1.1 11.0 5.4 7.7

Other ........................... 1.9 3.4 3.0 3.3 3.0 0.8 3.2 4.9 4.6 4.3

Number of people (thousands) . . . 29,555 12,536 44,134 2,029 60,199 3,174 7,794 16,922 889 24,993

Percent of total nonworkers. . . .....

Total..........................

Unable to find work. . . ............

On layoff . . . . . . . . . . . . . . . . . . . . . . . .

Temporary injury or illness. . . . .....

Chronic illness/disability ...........

Pregnancy/childbirth ..............

Retired. .........................

Going to school . . . ...............

Taking care of children/others. . ....

Not interested in working . . ........

Other ...........................

42.7 18.1 63.8 2.9 87.1 9.9 24.3 52.7 2.8 77.9

Standard error of percent

(NA)

0.072

0.022

0.123

0.496

0.011

0.575

0.042

0.168

0.229

0.184

(NA)

0.442

0.138

0.402

1.003

0.358

0.740

0.750

0.794

0.256

0.376

(NA)

0.142

0.094

0.114

0.300

0.078

0.557

0.432

0.359

0.266

0.189

(NA)

0.695

0.345

0.415

1.992

0.460

2.576

1.286

1.388

1.047

0.929

(NA)

0.140

0.074

0.122

0.335

0.092

0.474

0.352

0.310

0.206

0.162

(NA)

0.389

0.000

0.796

1.690

0.104

1.416

0.329

0.360

0.312

0.367

(NA)

0.642

0.216

0.609

1.322

0.525

0.382

0.616

1.148

0.279

0.470

(NA)

0.328

0.234

0.269

0.618

0.189

0.745

0.578

0.810

0.562

0.389

(NA)

1.462

0.786

0.942

3.538

0.868

3.614

2.142

2.860

1.774

1.647

(NA)

0.300

0.171

0.268

0.643

0.204

0.539

0.435

0.653

0.396

0.301

NA Not applicable.

1 People may be covered by more than one type of health insurance.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
U.S. Census Bureau 15

Figure 6.

Nonworkers Age 20 to 64 by Type of Health Insurance Coverage 

and Main Reason for Not Working: 1996

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

0.9 3.8

79.1

0.1

13.4

0.6 0.8 0.6 0.8

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Medicare

6.3

0.7

5.6

46.2

4.1 2.1

5.7

25.0

1.1 3.2

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Medicaid

3.5 1.7 2.3

13.7

1.1

21.9

11.7

28.3

11.0

4.9

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Private insurance

3.6 1.0 1.5

28.3

1.2

30.5

8.1

15.7

5.4 4.6

Not Other

interested

in working

Taking care

of children/

others

Going to

school

Pregnancy/ Retired

childbirth

Chronic

illness/

disability

Temporary

injury or

illness

On

layoff

Unable to

find work

Military-related
16 U.S. Census Bureau

Table 9.

Government Program Participation by Total Population and Adults Who Did Not Work:

1996

Government program

Age 15 years and over Age 20 to 64 years

All adults Nonworkers only All adults Nonworkers only

Standard

Per- error of

Total cent1 percent

Standard

Per- error of

Total cent1 percent

Standard

Per- error of

Total cent1 percent

Standard

Per- error of

Total cent1 percent

Number of people

(thousands) ............

Nonmeans-Tested Cash

Transfer Benefits:

Social Security ...........

U.S. Government Railroad

Retirement pay..........

State Unemployment

Compensation . .........

Workers’ Compensation . . .

Other government disability or survivors’ benefits . .

Means-Tested Noncash

Transfer Benefits:

Food Stamps ............

Energy Assistance ........

Housing Assistance .......

Free or Reduced School

Lunch ..................

Free or Reduced School

Breakfast ...............

Means-Tested Cash

Transfer Benefits:

Aid to Families with

Dependent Children

(AFDC/ADC). . . .........

Federal Supplemental

Security Income (SSI). . . .

State Supplemental

Security Income (SSI). . . .

Women, Infants, and

Children (WIC) Nutrition

Program. . . . . . . . . . . . . . . .

General Assistance . . . ....

Other Welfare ............

204,781 (NA) (NA)

38,147 18.6 0.177

300 0.1 0.017

3,733 1.8 0.061

1,173 0.6 0.034

1,274 0.6 0.036

9,455 4.6 0.096

4,696 2.3 0.068

7,433 3.6 0.085

19,409 9.5 0.133

10,732 5.2 0.101

3,787 1.8 0.061

5,690 2.8 0.075

347 0.2 0.019

4,524 2.2 0.067

819 0.4 0.029

308 0.2 0.018

69,150 (NA) (NA)

31,898 46.1 0.390

278 0.4 0.050

910 1.3 0.089

813 1.2 0.084

993 1.4 0.093

6,340 9.2 0.226

2,767 4.0 0.153

4,634 6.7 0.196

8,429 12.2 0.256

4,931 7.1 0.202

2,624 3.8 0.150

4,934 7.1 0.202

289 0.4 0.051

2,400 3.5 0.143

599 0.9 0.073

172 0.2 0.039

154,408 (NA) (NA)

8,634 5.6 0.120

58 0.0 0.010

3,639 2.4 0.080

979 0.6 0.042

626 0.4 0.033

8,060 5.2 0.117

3,274 2.1 0.076

5,055 3.3 0.093

15,042 9.7 0.155

8,482 5.5 0.119

3,539 2.3 0.078

3,743 2.4 0.081

258 0.2 0.021

3,966 2.6 0.083

716 0.5 0.036

246 0.2 0.021

32,081 (NA) (NA)

6,420 20.0 0.460

51 0.2 0.046

869 2.7 0.187

632 2.0 0.160

432 1.3 0.133

5,116 15.9 0.421

1,609 5.0 0.251

2,622 8.2 0.315

5,323 16.6 0.428

3,250 10.1 0.347

2,456 7.7 0.306

3,076 9.6 0.339

207 0.6 0.092

2,101 6.5 0.284

530 1.7 0.147

132 0.4 0.074

NA Not applicable.

1 Percentages do not add up to 100 percent because some nonworkers do not participate in any programs while others may be in more

than one program.

Note: Detail may not add to total because of rounding.

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.
U.S. Census Bureau 17

Social Security Overshadows

Other Benefits Among

Nonworkers

As Table 9 shows, 20 percent of

nonworkers age 20 to 64 years old

received Social Security benefits

(only 6 percent of the total population 20 to 64 years old received

those benefits). About 17 percent

of nonworkers (about 5 million)

lived in households where someone received free or reduced price

school lunches, while 16 percent

lived in households where someone received food stamps (see Figure 7). The least commonly received noncash benefit among

nonworkers was energy assistance

(5 percent).

Figure 8 shows the participation

rates in means-tested noncash

transfer programs13 of nonworkers

20 to 64 years old and the entire

population in this group. Approximately 10 percent of nonworkers

(about 3 million) received federal

Supplemental Security Income (SSI)

benefits, compared with 2 percent

13Means-tested programs are those that require the income or assets of an individual or

family to be below specified thresholds to

qualify for benefits.

Figure 7.

Participation of Adults (Age 20 to 64) in 

Means-Tested Noncash Transfer Programs 

by Transfer Program: 1996

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

Nonworkers

Total

5.2

2.1

3.3

9.7

5.5

15.9

5.0

8.2

16.6

10.1

Free or reduced

school breakfast

Free or reduced

school lunch

Housing

assistance

Energy

assistance

Food stamps

Figure 8.

Participation of Adults (Age 20 to 64) in 

Means-Tested Cash Transfer Programs 

by Transfer Program: 1996

Source: U.S. Census Bureau, Survey of Income and Program Participation, April-July 1996.

(Percent)

Nonworkers

Total

2.3 2.4

0.2

2.6

0.5 0.2

7.7

9.6

0.6

6.5

1.7

0.4

Other

welfare

General

assistance

Women,

Infants and

Children (WIC)

Nutrition

Program

State

Supplemental

Security

Income (SSI)

Federal

Supplemental

Security

Income (SSI)

Aid to Families

with

Dependent

Children

(AFDC/ADC)
18 U.S. Census Bureau

of the total population age 20 to wording of questions, reviewing the and use of standard errors, contact

64 years old. work of interviewers and coders, David Hall, Demographic Statistical

and conducting statistical review of Methods Division, at 301-457-4209

Accuracy and Reliability of reports. or on the Internet at

the Data David.W.Hall@census.gov.

The SIPP employs ratio estimation,

Statistics from sample surveys are whereby sample estimates are ad- Comments From Data Users subject to sampling and nonsam- justed to independent estimates of

pling error. All comparisons pre- The Census Bureau welcomes the the national population by age,

sented in this report have taken comments and advice of data us- race, sex, and Hispanic origin.

sampling error into account and ers. Send comments to: This weighting partially corrects for

meet the U.S. Census Bureau’s stan- bias because of under coverage,

dards for statistical significance. Daniel Weinberg but how it affects different variNonsampling errors in surveys may Chief, Housing and Household ables in the survey is not precisely

be attributed to a variety of sources, Economic Statistics Division known. Moreover, biases may also

such as how the survey was de- U.S. Census Bureau be present when people who are

signed, how respondents interpret Washington, DC 20233-8500 missed in the survey differ from

questions, how able and willing re- those interviewed in ways other or contact: spondents are to provide correct an- than the categories used in weight- Mai Weismantle swers, and how accurately answers ing (age, race, sex, and Hispanic Labor Force and Transfer Program are coded and classified. The Cen- origin). All of these considerations Statistics Branch sus Bureau employs quality control affect comparisons across different 301-457-3230 procedures throughout the produc- surveys or data sources. Mai.Anne.Weismantle@census.gov tion process — including in the overall design of surveys, testing the For further information on statistical standards and the computation
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