Welfare recipients: How do they become independent?

Abstract

This research used data concerning recipients' employment, receipt of Aid to Families with Dependent Children (AFDC), receipt of Temporary Assistance for Needy Families (TANF), and poverty status to develop a of by welfare recipients. Using U.S. Department of Labor survey data, a sample of AFDC/TANF recipients was analyzed through event history analysis. The results show that welfare reforms launched in 1996 moved dependent recipients out of welfare but had no effect on recipients' chances of leaving welfare. New two-year limits on unbroken program participation (and a five-year lifetime limit) pushed many unprepared recipients into poverty, or not. Economic conditions became worse for people than for those on welfare. The study also found that some former welfare recipients did go to work and eventually leave welfare and poverty. Occupational skills, work experience, child support, marriage, and experience in dependency or supplementation were among the factors promoting such a change. Key words: autonomy; dependency; self-reliance; supplementation; welfare recipients ********** Since the Personal Responsibility and Work Opportunity Reconciliation Act (P.L. 104-193) was passed in 1996, reformed welfare programs have been experimenting with new policies. Passage of this cornerstone legislation replaced decades-old Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF). The TANF program emphasizes the welfare-to-work principle. To help welfare recipients leave welfare and join the workforce, state TANF programs generally provide employment support services (for example, child care, limited medical coverage) and enforce aid restrictions (for example, time-limited benefits, work quotas, and sanctions). Welfare recipients who are able-bodied adults are required to be employed within two years of enrolling in a TANF program. Those who do not find employment lose all benefits. Furthermore, TANF benefits are limited to five years over a recipient's lifetime. The new approach is controversial. Not only has the sufficiency of the child care and medical benefits been called into question, the new time restrictions have been said to force many unprepared recipients to leave welfare. After leaving welfare, many people are likely to continue living in poverty, despite being employed (McCrate & Smith, 1998; Riemer, 1997). Therefore, it is important to understand the effect of welfare reform on recipients' employment and welfare use, as well as on their financial status after leaving welfare. FINANCIAL INDEPENDENCE AND TYPOLOGY OF ADAPTATIONS Financial independence means succeeding economically to the point of supplying one's own needs for shelter, food, clothing, and other necessities. Financial independence is achieved typically through employment; it is impeded by welfare use. Financial independence constitutes a continuum. Some people are employed for higher wages than others, for a variety of reasons. Many who are employed live well above the poverty line, but many live below that line, despite having regular employment. Some of these working poor individuals need public assistance (or other aid) to pay ordinary living costs. Whereas some are employed and still must participate in welfare, others rely entirely on public aid. This article presents a typology of adaptations that helps explain the differential behavior of welfare recipients. This study used concepts such as welfare use, employment, and poverty status to define four types of adaptation exhibited by welfare recipients--dependency, supplementation, self-reliance, and autonomy (see Figure 1). Dependency on welfare is defined as reliance on AFDC or TANF to meet all financial needs. Utterly dependent welfare recipients are unemployed, generate no earnings, and live in poverty. …