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Life after Welfare: The Economic Well-Being of Women and Children Following an Exit from AFDC

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  • D. R. Meyer
  • M. Cancian

Abstract

Much previous research has focused on the length of welfare spells and returns to welfare following an exit. Few quantitative studies have looked at broader indicators of the economic well-being of those who have exited AFDC. In this paper we use data from the National Longitudinal Survey of Youth (NSLY) to trace welfare use, poverty status, and primary sources of income in the five years following an exit from welfare. We find that while there is a trend toward improved economic status over time, 40 percent of women remain poor five years after exit. Women with more advantaged family backgrounds, those with fewer children, or with more education at exit are more likely to consistently escape poverty. Median income increases over the first five years from about $10,500 to about $15,000 (1992 dollars). Own earnings are the most prevalent income source, followed by spouse's earnings, and mean-tested transfers.

Suggested Citation

  • D. R. Meyer & M. Cancian, "undated". "Life after Welfare: The Economic Well-Being of Women and Children Following an Exit from AFDC," Institute for Research on Poverty Discussion Papers 1101-96, University of Wisconsin Institute for Research on Poverty.
    • Handle: RePEc:wop:wispod:1101-96
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    File URL: http://www.irp.wisc.edu/publications/dps/pdfs/dp110196.pdf
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Blank, Rebecca M & Ruggles, Patricia, 1994. "Short-Term Recidivism among Public-Assistance Recipients," American Economic Review, American Economic Association, vol. 84(2), pages 49-53, May.
    3. P. D. Brandon, "undated". "Vulnerability to future dependence among former AFDC mothers," Institute for Research on Poverty Discussion Papers 1055-95, University of Wisconsin Institute for Research on Poverty.
    4. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, vol. 84(2), pages 38-42, May.
    5. Daniel Meyer, 1993. "Child support and welfare dynamics: Evidence from Wisconsin," Demography, Springer;Population Association of America (PAA), vol. 30(1), pages 45-62, February.
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    Cited by:

    1. H. J. Holzer, "undated". "Employer Demand, AFDC Recipients, and Labor Market Policy," Institute for Research on Poverty Discussion Papers 1115-96, University of Wisconsin Institute for Research on Poverty.
    2. Gundersen, Craig & LeBlanc, Michael & Kuhn, Betsey A., 1999. "The Changing Food Assistance Landscape: The Food Stamp Program in a Post-Welfare Reform Environment," Agricultural Economic Reports 33993, United States Department of Agriculture, Economic Research Service.
    3. Tracy Roberts & Steven Martin, 2010. "Welfare Exit, Marriage, and Welfare Recidivism: A Reevaluation of Patterns of the 1980s and 1990s," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(2), pages 105-125, April.

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