These findings are particularly relevant given the effects of welfare reform. Kentucky's welfare caseload has declined by almost 40 percent since it reached its peak in 1993. But leaving welfare does not automatically mean leaving poverty. The study also suggests that Kentucky's high child poverty rate could be addressed by helping working poor families with children. Almost one in four children in Kentucky is poor.
Most poor children live in a family which includes a worker.
Both economic trends and government policies have made it more difficult for working parents to make ends meet. First, job growth in Kentucky has been concentrated in the low-paying services and retail trade industries. Second, the value of the federal minimum wage has declined significantly during the past 20 years. These trends make it difficult for parents to support their families through work. The report identifies several ways that Kentucky can address the needs of working poor families with children.