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Welfare Reform, Earnings, And Incomes: New Evidence From The Survey Of Program Dynamics

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  • LAURA S. CONNOLLY
  • CHRISTINE ENERSON MARSTON

Abstract

The authors ask how welfare reform has affected the earnings and incomes of welfare recipients using a detailed longitudinal data set, the recently released Survey of Program Dynamics (SPD). They find pre‐TANF waivers positively affected the earnings and incomes of both female high school graduates and nongraduates, but the effect is statistically significant only for nongraduates. In contrast, the effect of TANF policies is detrimental to nongraduates but improves economic outcomes for graduates. The findings indicate there are still families who are left behind by welfare programs. The results also warrant further use of longitudinal data sets such as the SPD. (JEL I38, H53)

Suggested Citation

  • Laura S. Connolly & Christine Enerson Marston, 2005. "Welfare Reform, Earnings, And Incomes: New Evidence From The Survey Of Program Dynamics," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 493-512, October.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:4:p:493-512
    DOI: 10.1093/cep/byi037
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    References listed on IDEAS

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    1. Robert A. Moffitt, 1996. "The effect of employment and training programs on entry and exit from the welfare caseload," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(1), pages 32-50.
    2. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
    3. Eileen Trzcinski & Jerry Brandell, 2002. "Adolescent Outcomes, Poverty Status, and Welfare Reform: An Analysis based on the Survey of Program Dynamics," JCPR Working Papers 269, Northwestern University/University of Chicago Joint Center for Poverty Research.
    4. Thomas MaCurdy & Thomas Mroz & R. Mark Gritz, 1998. "An Evaluation of the National Longitudinal Survey on Youth," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 345-436.
    5. Jeffrey Grogger, 2003. "The Effects of Time Limits, the EITC, and Other Policy Changes on Welfare Use, Work, and Income among Female-Headed Families," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 394-408, May.
    6. Wendy Sigle-Rushton & Sara McLanahan, 2002. "For Richer or Poorer?," JCPR Working Papers 264, Northwestern University/University of Chicago Joint Center for Poverty Research.
    7. Bradley R. Schiller, 1999. "State Welfare‐Reform Impacts: Content And Enforcement Effects," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 210-222, April.
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    Cited by:

    1. Leah Hamilton, 2016. "Incentives in the Temporary Assistance for Needy Families Program: A Review of the Literature," Poverty & Public Policy, John Wiley & Sons, vol. 8(2), pages 141-149, June.
    2. Jeounghee Kim, 2012. "The Effects of Welfare-to-Work Programs on Welfare Recipients’ Employment Outcomes," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 130-142, March.
    3. repec:ebl:ecbull:v:9:y:2008:i:2:p:1-4 is not listed on IDEAS
    4. Hui Li & Mukti Upadhyay, 2008. "Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-4.
    5. Leah Hamilton, 2021. "Asset Limits in Public Assistance and Savings Behavior Among Low‐Income Families," Social Science Quarterly, Southwestern Social Science Association, vol. 102(1), pages 454-467, January.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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