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Location and the Low Income Experience: Analyses of Program Dynamics in the Iowa Family Investment Program

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  • Helen H. Jensen
  • Shao-Hsun Keng
  • Steven Garasky

Abstract

In 1993, Iowa obtained a waiver to enact many of the key provisions of TANF in its welfare assistance and initiated the Iowa Family Investment Program (FIP). We use Iowa state administrative data for the period 1993-95 and study why some low-income households successfully leave public assistance while others who leave later return. We focus on those who were active in FIP at the time of the program reforms. The research explores the role of employment, earnings, and other support such as Food Stamps and child support for FIP leavers. Geographic (metro and nonmtero) differences are of specific interest. Reasons for recidivism are examined over time, with specific attention to local labor market conditions and factors that differentiate areas by degree of rural/metro location (various classifications). The analysis provides evidence on the effects of programmatic changes in Iowa's welfare programs. Among those active in FIP in all months of the two-year period, employment increased. Multivariate analysis of recidivism shows that during the first two quarters, those in nonmetro areas were more likely to return to FIP; however, after this initial period, the risk of return was very similar in the two areas. The analysis provides specific results for better understanding of the impact of recent reforms on low-income households in a state that is relatively rural.

Suggested Citation

  • Helen H. Jensen & Shao-Hsun Keng & Steven Garasky, 2000. "Location and the Low Income Experience: Analyses of Program Dynamics in the Iowa Family Investment Program," JCPR Working Papers 194, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:194
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    References listed on IDEAS

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    13. repec:mpr:mprres:1916 is not listed on IDEAS
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    Cited by:

    1. Wessman, Cory Robert, 2001. "The impact of human capital and income supports in alleviating material hardships among low-income households," ISU General Staff Papers 2001010108000018188, Iowa State University, Department of Economics.
    2. Cynthia Needles Fletcher & Jan L. Flora & Barbara J. Gaddis & Mary Winter & Jacquelyn S. Litt, 2000. "Small Towns and Welfare Reform: Iowa Case Studies and Families and Communities," JCPR Working Papers 190, Northwestern University/University of Chicago Joint Center for Poverty Research.
    3. Pan, Suwen & Fuller, Wayne A. & Jensen, Helen H., 2001. "Welfare Reform and Labor Participation: Are There Urban and Rural Differences?," 2001 Annual meeting, August 5-8, Chicago, IL 20665, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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