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Welfare Reform and Family Expenditures: How are Single Mothers Adapting to the New Welfare and Work Regime?

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  • Neeraj Kaushal
  • Qin Gao
  • Jane Waldfogel

Abstract

We study the effect of welfare reform, broadly defined to include social policy changes in the 1990s, on the material well-being and expenditure patterns of poor single-mother families. Our research suggests that welfare reform did not affect total expenditures in households headed by low-educated single mothers. However, patterns of expenditure did change. We find strong evidence that the policy was associated with an increase in spending on transportation and food away from home, and some evidence of an increase in spending on adult clothing and footwear. In contrast, we find no statistically significant changes in expenditures on childcare or learning and enrichment activities. This pattern of results suggests that welfare reform has shifted family expenditures towards items that facilitate work outside the home, but, at least so far, has not allowed families to catch up with more advantaged families in terms of their expenditures on learning and enrichment items.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12624.

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Date of creation: Oct 2006
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Handle: RePEc:nbr:nberwo:12624

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  1. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
  2. 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.
  3. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
  4. Marianne Bitler & Jonah Gelbach & Hilary Hoynes, 2004. "Welfare Reform and Health," NBER Working Papers 10549, National Bureau of Economic Research, Inc.
  5. Erich Battistin, 2002. "Errors in Survey Reports of Consumption Expenditures," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C4-2, International Conferences on Panel Data.
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Cited by:
  1. Krista Minnotte, 2012. "Family Structure, Gender, and the Work–Family Interface: Work-to-Family Conflict Among Single and Partnered Parents," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 95-107, March.
  2. Gennetian, Lisa A. & Castells, Nina & Morris, Pamela A., 2010. "Meeting the basic needs of children: Does income matter?," Children and Youth Services Review, Elsevier, vol. 32(9), pages 1138-1148, September.
  3. Martin, Megan & Caminada, Koen, 2009. "Welfare reform in the United States. A descriptive policy analysis," MPRA Paper 20139, University Library of Munich, Germany.
  4. Gao, Qin & Zhai, Fuhua & Garfinkel, Irwin, 2010. "How Does Public Assistance Affect Family Expenditures? The Case of Urban China," World Development, Elsevier, vol. 38(7), pages 989-1000, July.

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