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Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data

Author

Listed:
  • Hui Li

    (Eastern Illinois University)

  • Mukti Upadhyay

    (Eastern Illinois University)

Abstract

This paper empirically analyzes the effects of welfare reform on US poverty by applying a two-stage estimation procedure with the random effects model using panel data from 1991 through 2003. Our results suggest that a rise in TANF or in unemployment rate raises poverty, whereas the welfare reform started in 1996 has not contributed significantly to poverty reduction.

Suggested Citation

  • 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.
    • Handle: RePEc:ebl:ecbull:eb-07i30003
    as

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    References listed on IDEAS

    as
    1. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
    2. Gi Choon Kang & Sonya Kostova Huffman & Helen Jensen, 2004. "An empirical analysis of joint decisions on labour supply and welfare participation," Applied Economics Letters, Taylor & Francis Journals, vol. 11(14), pages 869-872.
    3. Meyer, Bruce D. & Sullivan, James X., 2004. "The effects of welfare and tax reform: the material well-being of single mothers in the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1387-1420, July.
    4. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    5. 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.
    6. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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