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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. Robert F. Schoeni & Rebecca M. Blank, 2000. "What has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," NBER Working Papers 7627, National Bureau of Economic Research, Inc.
    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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