Welfare Leavers Research Articles

ワーキングプア化する生活保護「自立」世帯 : P市生活保護廃止世帯の分析

ワーキングプア化する生活保護「自立」世帯 : P市生活保護廃止世帯の分析

Welfare‐to‐Work Reform and Intergenerational Support: Grandmothers' Response to the 1996 PRWORA

The 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA; Pub. L. 104‐193) in the United States aimed at encouraging work among low‐income mothers with children below age 18. In this study, the author used a sample of 2,843 intergenerational family observations from the Health and Retirement Study to estimate the effects of the reform on single grandmothers who are related to those mothers. The results suggest that the reform decreased time transfers but increased money transfers from grandmothers. The results are consistent with an intergenerational family support network where higher child care subsidies motivated the family to shift away from grandmother provided child care and where grandmothers increased money transfers to either help cover the remaining cost of formal care or to partly compensate for the loss in benefits of welfare leavers.

The Complex Lives of Disconnected Welfare Leavers: Examining Employment Barriers, Social Support and Informal Employment

With no federal entitlement to cash assistance, some unemployed welfare leavers have no obvious means of support. This article compares former Louisiana's Strategies to Empower People (STEP) participants who are disconnected from employment and Temporary Assistance for Needy Families (TANF) to those who are connected. Logistic regressions show that disconnected welfare leavers are more likely to have transportation problems, live rent free, and engage in informal employment. They are less likely to report a health problem or have a child with poor health, share living expenses, or receive cash help from family and friends. Contributions to the literature and policy initiatives are discussed.

The Extended TANF Application Period and Applicant Outcomes: Evidence from Wisconsin

This article examines the characteristics and income patterns associated with welfare entry and nonentry in the context of an extended application period for a sample of 1,664 women who applied for Temporary Assistance for Needy Families services in Wisconsin in the fall of 2006. The study uses data derived from the systematic review of caseworker notes as well as administrative data on welfare participation, earnings, child support, the Supplemental Nutrition Assistance Program, Earned Income Tax Credit estimates, and Supplemental Security Income receipt. It finds that about one-half of those who applied for services did not enter the welfare program within a 60-day time frame. Results indicate that those with consistent employment prior to applying for services, those with very young children, and pregnant applicants are less likely to drop out. In examining differences in economic well-being in the year following an application, the study finds that those who applied for and entered welfare (participants) and those who applied for but did not enter (dropouts) generally had similarly high levels of poverty. However, dropouts had higher rates of deep poverty, with some subgroups--such as those who had declined services--fating better than others. KEY WORDS: poverty; TANF; welfare; welfare application ********** The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-110) ushered in a new era of work-based welfare. Benefits are time limited and are no longer an entitlement; work activities are generally mandatory in exchange for cash assistance. These components of postreform Temporary Assistance for Needy Families (TANF) programs were designed to move low-income families off the welfare rolls and into the labor market, reducing caseloads and reliance on welfare. An expansive literature on welfare leavers has documented the dramatic decline in TANF caseloads and increased employment among single mothers, although findings point to poverty-level earnings and future spells of welfare receipt for many (for a review of welfare leaver outcomes, see Acs & Loprest, 2004; Cancian, Haveman, Meyer, & Wolfe, 2002; Cancian & Meyer, 2004; Danziger, Heflin, Corcoran, Oltmans, & Wang, 2002; Grogger & Karoly, 2005; Wu, Cancian, & Meyer, 2008). Although scholars continue to debate the impact of welfare reform policies relative to the economy on postreform caseload decline (see Danielson & Klerman, 2008), the strong work-first approach of modern welfare programs, which generally offer lower cash benefits than those earned through unsubsidized employment, shares some credit for the sharp reduction in caseloads and the increase in low-income women's employment (Blank & Schmidt, 2001; Grogger & Karoly, 2005; Moffit, 2002). There is another contributor to reduced welfare caseloads: TANF policies that redirect applicants before they enroll, often referred to as (Besharov & Germanis, 2007; Danielson & Klerman, 2008; Meyers & Lurie, 2005; Ridzi & London, 2006). Two popular diversion tools are (1) one-time cash payments offered in lieu of TANF participation and (2) extended application periods during which applicants participate in mandatory job-search activities over a prescribed number of days prior to eligibility determination. Diversion procedures are intended to attach unemployed applicants to the labor market or maintain employment for the working poor prior to TANF enrollment, thereby promoting self-sufficiency among target groups. There are, however, concerns regarding the effectiveness of diversion tools in moving applicants into employment and targeting the appropriate groups. For example, scholarship on lump-sum cash payments suggests that those who are both the best and least equipped for the labor market are targeted, and a substantial number of recipients cycle onto TANF soon after receipt of the payment (Hetling, Ovwigho, & Born, 2007; Helting, Tracy, & Born, 2006; London, 2003). …

A Comparison of Sanctions in African American and White TANF Leavers

In this study the authors explore racial disparities in the uses of sanctions and the different impact of sanctions on the economic well-being of African American and White TANF leavers. The study analyzed 907 African American and 1,336 White welfare leavers from the 1999 and 2002 data of the NSAF. Chi-square results show that sanctions are more significantly imposed to African Americans than Whites. On the other hand, regression results show that the impact of sanctions on the employment and family income of African Americans and Whites are comparable. Implications suggest that states need to have an appropriate sanction process, training programs for caseworkers, or other policy changes to reduce the racial disparities.

Children's well-being, adult poverty, and jobs-of-last-resort

This article addresses the failure of the 1996 welfare reform act (Personal Responsibility and Work Opportunities Reconciliation Act [PRWORA]) as an anti-poverty program demonstrated by the fact that approximately half of all ‘welfare leavers’ have fallen back into poverty within a year or two of their exit. The proximate cause is that, because of “barriers to work” or insufficient demand, leavers end up working too few hours over the course of a year. To address this failure, we propose a program of jobs-of-last-resort, called Promise of a Job (POJ), based on an examination of the design, costs, and results for a large number of transitional-job and welfare-to-work programs. In this article, we estimate POJ's costs per participant and overall costs of implementation, as well as the impact such a program would have on reducing adult and, particularly, child poverty. We find, in examining past data, that had POJ been applied to just those Americans who were on Aid to Families with Dependent Children (AFDC)...

Lost Leavers: Uncovering the Circumstances of those without Welfare and without Work

An increasing number of people no longer enrolled in Temporary Assistance for Needy Families (TANF) experience periods of “disconnection” after exiting the welfare program. The present research, based on data from a large longitudinal state welfare leaver study, explores the circumstances and characteristics of welfare leavers who receive no formal employment earnings but do not return to cash assistance for at least 1 year after exiting welfare. Using a variety of administrative program data and welfare caseworker notes, the size of the various subgroups within the disconnected population and their possible needs were examined. Cluster analysis revealed 6 important subgroups with differing needs and barriers. The findings focus on policy implications, particularly in relation to the Congressional reauthorization of TANF.

More than Meets the Eye: Gaining Insight into the Lives of “Successful” Welfare Leavers

Past research on welfare reform finds inconsistent earnings and high poverty rates among former participants. We know relatively little, however, about those who leave welfare and have some measure of economic success. This qualitative study explores the everyday lives of former welfare applicants who had improved earnings in the year after leaving welfare. We find that access to formal and informal support is critical to the success of women leaving welfare. Employment circumstances, in particular job protection, are also important in both economic progress and decline. We discuss policy areas that may bolster and help sustain economic growth post-welfare participation.

Making the 1996 Welfare Reform Work: The Promise of a Job

Policy makers often tout the finding that Temporary Assistance for Needy Families caseloads have shrunk by 50% or more since the passage of the 1996 welfare reform act (Personal Responsibility and Work Opportunities Reconciliation Act). Less well publicized is the economic fate of these “welfare leavers.” Extensive evidence shows that, despite the fact that as many as 60% exit with a full-time job, within a year or two approximately one half of all welfare leavers—and their children—fall into poverty. These findings predate the current severe recession; the economic status of current and past welfare leavers is undoubtedly much worse today. The proximate cause of this high rate of poverty is that welfare leavers end up working, on average, too few hours over the course of a year. Behind these low hours are the more fundamental causes of the measurable “barriers to work” limiting many leavers, and the limited supply of appropriate private-sector jobs, even during the so-called full-employment years of the late 1990s. In a search for solutions to this problem, this article examines the design, costs, and effects of a large number of job creation/welfare-to-work programs. Using these results, we propose a program of jobs of last resort called Promise of a Job (POJ). The authors outline the structure of POJ, provide costs estimates per participant and for its national implementation, and simulate its impact on poverty rates. Depending on assumptions such as the eligibility requirements and the rate at which participants are placed in full-time jobs, some simulations show dramatic reductions in the rates of adult and, especially, children's poverty.

Stretched Thin: Poor Families, Welfare Work, and Welfare Reform. By Sandra Morgen, Joan Acker, and Jill Weigt. Ithaca, NY: Cornell University Press, 2010. Pp. 256. $59.95 (cloth); $22.95 (paper).

<i>Stretched Thin: Poor Families, Welfare Work, and Welfare Reform</i>. By Sandra Morgen, Joan Acker, and Jill Weigt. Ithaca, NY: Cornell University Press, 2010. Pp. 256. $59.95 (cloth); $22.95 (paper).

How do economic downturns affect welfare leavers? A comparison of two cohorts

Early welfare reform research showed high rates of employment for TANF leavers. However, work-focused welfare may not be effective during an economic downturn. We investigate the employment of Wisconsin TANF leavers, contrasting outcomes among early leavers (1998) with those who left during the 2001 recession. We use data from administrative records on about 6000 welfare leavers, tracking quarterly employment for 3 years after they left benefits. Separate panel data analyses of those exiting in two different time periods show that individual leavers are less likely to be employed when their local unemployment rate is high in the later cohort; no relationship is found for the early cohort. In a panel analysis in which the cohorts are combined, we find that leavers in the later cohort, who experienced the recession early in their post-welfare career, are less likely to be employed, a result that holds controlling for observed and unobserved characteristics. These findings raise questions about how well single-parent families and their children will fare during difficult economic times now that welfare reform has such a strong emphasis on work.

Child care subsidies post TANF: Child care subsidy use by African American, White and Hispanic TANF-leavers

With welfare reform, appropriations for child care subsidies have increased with the goal of increasing the employability of welfare leavers while promoting children's access to quality, affordable child care. Yet, not all low-income eligible families use child care subsidies. Understanding which low-income families use child care subsidies and which do not will provide initial insights into the nature and effectiveness of the child care subsidy system. Does the child care subsidy program equally serve families from diverse cultural backgrounds? What family and demographic factors are associated with child care subsidy use? We compared child care subsidy experiences of equal numbers of African American, White, and Hispanic TANF-leavers in five counties in and around Philadelphia. Fifty-five percent of African American TANF-leavers, 43% of White TANF users, and 45% of Hispanic TANF users were not eligible for subsidies because they were not employed upon leaving welfare. Of those families eligible for child care subsidies, 78% of the eligible African American TANF-leavers, but only 49% of the White, and 45% of the Hispanic TANF users used subsidies. Similarly, 85% of the subsidy-eligible African American families used child care, but only 70% of the white and 67% of the Hispanic subsidy-eligible families used child care. Thus, African American families were more likely than other families to be eligible for subsidies, to use them when eligible, and to use child care when eligible. While race/ethnicity was the primary predictor of subsidy usage, an additional predictor for all families of not using subsidies was having economic support from relatives and friends. For African Americans, prior use of public subsidies and for Whites, the absence of mental health problems also predicted subsidy usage.

Native Competition and Low-Skilled Immigrant Inflows

This paper demonstrates that immigration decisions respond to differences in local labor market conditions by documenting the change in low-skilled immigrant inflows in response to supply increases among the US-born. Using pre-reform welfare participation rates as an instrument for changes in native labor supply, I find that immigrants prefer cities with fewer welfare leavers over cities with larger reform-induced supply shifts. The extent of the selection is substantial: for each additional native woman working in a city as a result of welfare reform, 0.8 fewer female immigrants choose to live and work there. These results provide direct evidence that international migration flows tend to equilibrate returns across US local labor markets.

State TANF Policies and Employment Outcomes among Welfare Leavers

This study examines the extent to which employment outcomes for welfare leavers differ depending on TANF policies adopted by states. Data on welfare leavers come from the 1996 panel of the Survey of Income and Program Participation. Policies in the leavers’ states of residence are characterized by factor scores. Results suggest that employment and job quality outcomes for welfare leavers are associated with several aspects of states’ TANF rules. For example, the stringency of work requirements is positively related to employment among later welfare leavers, but neither the leniency nor stringency of work requirements is related to employment among early welfare leavers. Lenient work requirements are found to increase the probability that welfare leavers’ first jobs off welfare carry employer‐provided health insurance.

Welfare leaving and the health of young children in immigrant and native families

Research examining the effects of welfare dynamics on children’s development has provided little information to date on the experiences of immigrant children. Using longitudinal data collected during the period of welfare reform (1995–1999; the Project on Human Development in Chicago Neighborhoods, PHDCN), this study investigates whether welfare leaving is associated with changes in preschool-aged children’s ( n = 550) physical health (i.e., general health status, sick days, respiratory illness and emergency room visits) over time, and whether these associations differ by parents’ nativity status. We find that children of immigrant welfare leavers fare significantly worse in terms of their health than their peers in either native leaver families, or immigrant families who continued to receive assistance. Associations are robust to the inclusion of a wide range of control variables including children’s initial health status, family demographic characteristics, qualities of the home environment, and indicators of parents’ physical and mental health. Negative impacts of welfare leaving on children’s health appear to be concentrated among immigrants who have multiple “barriers” to program participation (i.e., limited English proficiency, fewer years residing in the US, households with no citizen parent, and self-reported experiences of discrimination).

African American, White and Hispanic child care preferences: A factorial survey analysis of welfare leavers by race and ethnicity

This research investigates the child care preferences of poor White, African American and Hispanic parents. Using the factorial survey method, this research examines the impact of race and ethnicity on child care preferences and definitions of child care quality. The findings do not support the conclusion that race and ethnicity are a major source of division in preferences for child care. Rather there was consensus around desired core care attributes associated with child care quality. Across racial and ethnic lines, parents wanted safe and regulated care that was evaluated by a government agency with warm and trained caregivers. Findings suggest that differences in child care use by race and ethnicity may not be due to different preferences for particular types of care, but for bundles of care characteristics people may believe are associated with particular care situations. Different child care choices may not stem from cultural differences, but more from market constraints and lack of information.

Determinants of Unemployment and Economic Hardship of Welfare Leavers Who Have Reached Their Lifetime Limits

ABSTRACT A cross-sectional survey design is used to explore the determinants of unemployment and economic hardship among former welfare recipients who have reached their 5-year lifetime limits in a sample of 276 former WV WORKS recipients in West Virginia. The findings of the study indicate that respondents with mental problems; physical disabilities; or without a high school diploma, child care, or transportation were more likely than others to be unemployed. In addition, either mental health problems or a lack of transportation were significantly associated with the economic hardships of the welfare leavers. Policy implications suggest that the lifetime-limit policy be exempted for those with mental problems or physical disabilities, or extended for those who have children under age 2 and comply with mandatory work requirements.

Welfare Reform in the Mid-2000s: How African American and Hispanic Families in Three Cities Are Faring

This article reports on a sample of 538 African American and Hispanic women who were receiving TANF in 1999, 416 of whom left the program by 2005. The Hispanic women consisted of a Mexican-origin group and a second group that was primarily Puerto Rican and Dominican. Combining the experiences of the employed and the non-employed welfare leavers, we find at best a modest decline in the average poverty rate among African American welfare leavers between 1999 and 2005. Mexican-origin and other Hispanic leavers showed larger average declines in poverty. Among just the welfare leavers who were employed in 2005, the averages for women in all racial-ethnic groups showed increases in household income and declines in poverty. Among those who were not employed, African-Americans had experienced a decline in household income and were further below the poverty line than in 1999, whereas Hispanic women had experienced modest declines or slight increases in their household incomes.

Job Access, Employment and Earnings: Outcomes for Welfare Leavers in a US Urban Labour Market

This article examines the effect of job access on employment outcomes for welfare recipients in Cleveland, Ohio, leaving assistance during 1998—2000. A rich longitudinal dataset is employed, combining administrative and survey data with multiple measures of access to and competition for jobs. The focus is on both a population and a range of measures of employment outcomes not previously studied in this context. Empirical ambiguity in the existing literature has resulted from the difficulty of modelling causality when employment and residential location are jointly determined. In this study, labour market outcomes are related to the residential locations of welfare leavers prior to employment, thus overcoming much potential endogeneity. Virtually no evidence is found that job access influences labour market outcomes for this population.

Why Welfare Reform Critics Went Astray

ABSTRACT. This article documents how welfare policies improved the material well‐being of the majority of welfare leavers during the economic boom. Critics ignored these broad gains and instead inflated the adverse effects on the poorest mothers and the role of conservative ideologies in promoting welfare reform. Critics also relied on older studies that proved to be poor guides to predicting the impact of welfare reform. In addition, critics did not accurately take into account important non‐material benefits and misread the role of other safety‐net programs.