The Great Recession and Economic Resilience: A Longitudinal Analysis of Low-Income Households in the United States

Joseph, R.

This paper examined the extent to which low-income households in the United States recovered from the Great Recession. Using the 2008 Survey of Income and Program Participation Panel, this longitudinal study traced the footsteps of 7,755 low-income households between 2008 and 2013. This study also compared poor households with their near-poor counterparts with respect to economic resilience vis-à -vis the recession. Descriptive statistics showed that just 41 percent of the sample reached economic resilience in 2013, while multivariate logistic regression results indicated that poor households were 33 percent less resilient than near-poor households. This study holds major implications for policy and research. In fact, macro-level policy changes can have micro-level effects. Because stimulus packages are rare policy interventions, policymakers should ensure that such emergency-type of policy infusion works, including for those at the bottom of the economic pyramid. Meanwhile, by revealing how financial crises and recovery efforts impact disadvantaged populations, the findings in this study have implications for future research. Through their longitudinal focus on disaster relief and economic resilience among low-income households, these findings contribute to the existing literature. As the United States is recovering from the Covid-19 pandemic, this study can serve as a reference point for future research. © 2021 Taylor & Francis Group, LLC.