Program and Economic Outcomes by TANF Work Exemption Status

Abstract

Objective: Welfare-reform research has treated the Temporary Assistance for Needy Families (TANF) program as a homogenous work program despite the commonality of exemptions from work requirements. To address this shortcoming, we compare program and economic outcomes between three groups of TANF participants: work-exposed (workers), work-exempt to care for an infant (new mothers), and work-exempt due to a disability (participants with a disability). Method: Using 2006 administrative data for a cohort of Wisconsin TANF entrants (N = 682), we describe differences in individual characteristics, TANF participation, and work and income patterns between groups. We use discrete-time regression models to examine the between-group correlates of exiting TANF and exiting TANF to work. Results: Descriptive analyses reveal significant differences between groups in individual characteristics and TANF, work, and income patterns. On average, new mothers have more education and work experience, fewer and shorter TANF spells, and greater earnings and income in the year following TANF entry compared to other participants. Discrete-time regression analyses, however, suggest that pre-entry education and work experience are the strongest predictors of employment outcomes. Conclusions: To address the diversity of outcomes between TANF groups, policymakers should consider program alternatives such as disability and paid-leave programs.