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Welfare Time Limits in the United States – Experiences with a New Welfare-to-Work Approach

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  • Wolfgang Ochel

Abstract

This paper reviews the evidence on welfare time limits in the United States. It primarily refers to experimental and econometric evaluations. Time limits affect welfare recipients both before and after their limits are reached. Time limits reduce welfare receipt and increase employment before recipients reach the limit, as recipients "hoard" their months of eligibility for future use. Once recipients begin to exhaust their benefit entitlements, welfare use falls sharply. A large proportion of time-limit leavers, however, continues to receive Food Stamps, Medicaid, etc. The impact on employment is mixed. Income effects change from positive to neutral in subsequent periods.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2004/wp-cesifo-2004-06/cesifo1_wp1210.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1210.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1210

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Keywords: Sozialhilfe; Dauer; Vereinigte Staaten; Welfare payments; Duration; United States;

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  1. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2003. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," Working Papers, RAND Corporation Publications Department 109, RAND Corporation Publications Department.
  2. Jeff Grogger & Charles Michalopoulos, 1999. "Welfare Dynamics Under Time Limits," NBER Working Papers 7353, National Bureau of Economic Research, Inc.
  3. Rebecca M. Blank, 2001. "Declining caseloads/increased work: what can we conclude about the effects of welfare reform?," Economic Policy Review, Federal Reserve Bank of New York, Federal Reserve Bank of New York, issue Sep, pages 25-36.
  4. Jeffrey Grogger, 2004. "Time Limits and Welfare Use," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
  5. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, The Earned Income Tax Credit, And The Labor Supply Of Single Mothers," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(3), pages 1063-1114, August.
  6. Jeffrey Grogger, 2003. "The Effects of Time Limits, the EITC, and Other Policy Changes on Welfare Use, Work, and Income among Female-Headed Families," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 394-408, May.
  7. Christopher A. Swann, 2005. "Welfare Reform When Recipients Are Forward-Looking," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  8. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  9. James P. Ziliak & David N. Figlio & Elizabeth E. Davis & Laura S. Connolly, 2000. "Accounting for the Decline in AFDC Caseloads: Welfare Reform or the Economy?," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 570-586.
  10. Jeffrey Grogger, 2002. "The Behavioral Effects of Welfare Time Limits," American Economic Review, American Economic Association, American Economic Association, vol. 92(2), pages 385-389, May.
  11. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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