Predictors of Formal, Informal, and Illegal Income Generation Among Homeless Young Adults in Three Cities
Employment rates for homeless young adults are low compared to their housed peers. These young people often earn income from informal sources, or "survival behaviors", which can be legal (e.g., selling possessions and self-made items) and illegal (e.g., theft and selling drugs). Despite evidence that homeless young adults earn income from various sources, it remains unclear what similarities and differences exist among youth who engage in formal verses informal income generation. Understanding this information can inform job readiness programs that aim to engage and prepare youth for formal employment. This study thus examined demographic, homelessness, peer influence, and mental health correlates of income generation by homeless young adults in three U.S. cities. One research question guided this study: Among homeless young adults, what factors are associated with income generation from formal sources (employment) and informal sources (survival behaviors)?
Methods:
This study used a cross-sectional design and purposive sampling to recruit 601 homeless young adults (ages 18-24) from agencies in Los Angeles (n=200), Austin (n=200), and Denver (n=201). Face-to-face interviews using a quantitative retrospective questionnaire that included standardized measures (e.g., Mini International Neuropsychiatric Interview and Resilience Scale) sought information on demographics, homelessness, employment, transience, peer influences, mental health, and resiliency. Two multivariate logistic regression models were analyzed in SPSS 18.0 to examine associations between correlates and income generation from three formal sources (i.e., full-time, part-time, and temporary employment) and nine informal sources (e.g., panhandling, selling possessions, theft). Post-hoc analysis was also used to identify factors related to income generation from five of the nine informal sources that are illegal (e.g., dealing drugs, survival sex, theft).
Results:
Among the full sample, 18.6% received income exclusively from formal sources. This model’s fit was strong (χ2=75.38 [df=16], p<.001). Formal income generation was associated with not meeting the criteria for major depressive episode or antisocial personality disorder, less transience, not having friends who use drugs, and higher self-reliance. Regarding informal income generation, 69.6% earned income exclusively from informal sources. This model’s fit was also strong (χ2=166.30 [df=16], p<.001). Informal income generation was associated with younger age, greater transience, having friends who use drugs, and meeting the criteria for major depressive episode, antisocial personality disorder, and substance use disorder. Lastly, 26.0% of young adults earned income exclusively from illegal sources. This model’s fit was good (χ2=43.66 [df=16], p<.001). Illegal income generation was associated with younger age and meeting the criteria for manic episode.
Conclusions and Implications:
Two findings emerged from this study. First, homeless young adults more frequently earned income from informal survival behaviors than from formal employment. Second, young adults who engaged in formal income generation overall had better mental health, higher self-reliance, and greater stability. Conversely, those who engaged in informal income generation had poorer mental health and greater instability. Identifying the factors associated with income generation suggests there may be value in combining employment and clinical services with supportive housing for homeless young adults to enhance their mental health and stability as well as their success in obtaining and maintaining formal employment.