What Has Welfare Reform Accomplished

1
What Has Welfare Reform Accomplished?

• By Robert F. Schoeni Rebecca M. Blank
• February 2000

Presentation by Erica Johnson
2
Overview of Welfare

• State Waivers
• PRWORA - 1996

Available since 1962
Widespread use in early to mid-1990s
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3 Types of Evaluations

• Caseload Studies
• Leavers Studies
• Work Participation Studies

4
Trends in Welfare Participation
Welfare Recipients as a Percentage of Total
Population
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Trends (continued)
Share of Women Participating in AFDC Last Year
Who Were Employed Last Week
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Data

• 959,243 women ages 16-54
• Grouped by state, year, education group, age
  group

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General Findings

• Policy changes
• reduced caseloads
• reduced female HH headship
• reduced poverty
• increased income
• increased work behavior
• increased marriage

8
Specific Findings

• After controlling for economic differences,
  waiver and nonwaiver states appear similar before
  implementation of waivers
• AFDC usage and poverty fell significantly faster
  in waiver states while employment rose
  significantly faster

9
Welfare Participation Among High School Dropouts
10
Poverty Rates Among High School Dropouts
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Employment Among High School Dropouts
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TANF vs. Waivers

• TANF had twice as large of an impact on welfare
  participation among high school dropouts as did
  waivers

But unlike waivers, no significant effects of
TANF on work participation or earnings possibly
because of fewer post-TANF observations