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Ten years later: Self‐sufficiency of welfare mothers before the Great Recession

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  • Denton R. Vaughan
  • Barbara A. Haley
  • Aref N. Dajani

Abstract

This paper presents a preliminary evaluation of the Temporary Assistance to Needy Families program, that was mandated by the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), showing trends over time in wages for mothers who received welfare benefits in 1996, using the power of a longitudinal data set: a nationally representative sample of 1000 welfare mothers in the 1996 Survey of Income and Program Participation (SIPP), linked to their IRS wage records from 1996 to 2007. Only one in ten of the 1996 cohort of welfare mothers received wages that were at least 175% of the poverty line by 2007. By 2007, only one in six of those with more than a high school diploma achieved this level of economic self‐sufficiency. For all time periods, the federal Earned Income Tax Credit, had a positive impact for only the lowest wage earners, that is, with earnings below half the poverty line. Our results provide a commentary on the validity of neoliberal assumptions underlying the long‐term implementation of the PRWORA. Analyses of future SIPP panels will determine whether these trends continued. 本文通过使用一项纵向数据集—1996年收入和计划参与调查（SIPP）中一项由1000名参与福利计划的母亲组成的全国代表性样本—并将该数据集与1996‐2007年间她们在美国国税局的工资记录相联系，展示了这些母亲随时间推移的工资趋势。她们之中仅有十分之一的人在2007年的收入不低于贫困线的175%。2007年，她们之中拥有高中文凭及以上的人里仅有六分之一实现了经济自足。在1996‐2007年里，联邦收入所得税抵免（EITC）仅对最低收入获得者产生了积极影响，即那些收入低于贫困线一半的人群。我们的研究结果初步评论了1996年《个人责任与就业机会协调法》（PRWORA）长期执行过程中隐藏的新自由主义假设。分析未来SIPP面板数据的研究将确定这些趋势是否会继续。 Este documento muestra las tendencias a lo largo del tiempo en los salarios de las madres que recibieron beneficios de asistencia social en 1996, utilizando el poder de un conjunto de datos longitudinal, una muestra representativa a nivel nacional de 1000 madres de asistencia social en la Encuesta de Ingresos y Participación en Programas de 1996 (SIPP), vinculada a su IRS. registros salariales de 1996 a 2007. Solo una de cada diez de la cohorte de 1996 de madres de bienestar recibió salarios que eran al menos el 175% de la línea de pobreza en 2007. En 2007, solo una de cada seis de las que tenían más de un diploma de escuela secundaria logró este nivel de autosuficiencia económica. Para todos los períodos de tiempo, el Crédito Tributario por Ingreso del Trabajo (EITC) tuvo un impacto positivo solo para los asalariados más bajos, es decir, con ingresos por debajo de la mitad de la línea de pobreza. Nuestros resultados proporcionan un comentario preliminar sobre los supuestos neoliberales que subyacen a la implementación a largo plazo de la Ley de Reconciliación de Responsabilidad Personal y Oportunidades Laborales de 1996 (PRWORA). Los análisis de los futuros paneles SIPP determinarán si estas tendencias continuaron.

Suggested Citation

  • Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2021. "Ten years later: Self‐sufficiency of welfare mothers before the Great Recession," Poverty & Public Policy, John Wiley & Sons, vol. 13(2), pages 184-223, June.
    • Handle: RePEc:wly:povpop:v:13:y:2021:i:2:p:184-223
    DOI: 10.1002/pop4.308
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