Welfare as Maternity Leave? Exemptions from Welfare Work Requirements and Maternal Employment

Abstract

In some states, the Temporary Assistance for Needy Families (TANF) program offers the equivalent of paid maternity leave without job protection to low-income, single mothers of infants. Age-of-youngest-child (AYC) exemptions waive work requirements for TANF recipients after the birth of a child, generally for 3-12 months, depending on the state. This study uses data from the Current Population Survey (1998-2008) to examine whether the availability and length of AYC exemptions are predictive of rates of employment, work, and full-time work among low-educated single mothers with infants. The analysis uses the difference-in-differences (DD) technique, a comparison of outcomes under different policy treatments and between treatment and comparison groups. The results suggest that AYC exemptions are not related to employment or work rates but that living in a state with no AYC exemption is strongly and positively associated with rates of full-time work among low-educated mothers with infants.