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The Effects of Welfare and Tax Reform: The Material Well-Being of Single Mothers in the 1980s and 1990s

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Bruce D. Meyer
James X. Sullivan

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Abstract

The tax and welfare programs that provide income and in-kind benefits to single mothers have changed dramatically in recent years. These changes began as far back as the mid-1980s and culminated with the 1996 welfare law that 'ended welfare as we knew it.' These tax and welfare changes have sharply increased the employment of single mothers and cut welfare rolls. However, little is know about the effects of these policy changes on the living conditions of single mothers and their children. Studies of those leaving welfare have found that a substantial percentage have problems paying rent, purchasing enough food, and paying utility bills. Other studies have found a decline in income among the worst-off single mothers. The goal of this paper is to examine the material well-being of single mothers and their families before and soon after welfare reform. Using data from two nationally representative household surveys we examine the consumption patterns of single mothers and their families. We find that the material conditions of single mothers did not decline in recent years, either in absolute terms or relative to single childless women or married mothers. In most cases, our evidence suggests that the material conditions of single mothers have improved slightly, even for highly disadvantaged single mothers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8298.

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Date of creation: May 2001
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Handle: RePEc:nbr:nberwo:8298

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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  1. Kasey Buckles & Daniel M. Hungerman, 2008. "Season of Birth and Later Outcomes: Old Questions, New Answers," NBER Working Papers 14573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. King, Jeffrey & Liebman, Jeffrey & Katz, Lawrence & Sanbonmatsu, Lisa, 2004. "Moving to Opportunity and Tranquility: Neighborhood Effects on Adult Economic Self-Sufficiency and Health from a Randomized Housing Voucher Experiment," Working Paper Series rwp04-035, Harvard University, John F. Kennedy School of Government. [Downloadable!]
    Other versions:
  3. Mills, Bradford F., 2002. "Changes In The Well-Being Of Nonmetropolitan Single-Mother Families: A Semi-Parametric Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December. [Downloadable!]
  4. Hilary W. Hoynes & Diane Schanzenbach, 2007. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," NBER Working Papers 13025, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Dahlberg, Matz & Johansson, Kajsa & Mörk, Eva, 2008. "On mandatory activation of welfare receivers," Working Paper Series 2008:24, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  6. Hui Li & Mukti Upadhyay, 2008. "Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data," Economics Bulletin, Economics Bulletin, vol. 9(2), pages 1-4. [Downloadable!]
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