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The Impact of Welfare Reform on Leaver Characteristics, Employment and Recidivism: An Analysis of Maryland and Missouri

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Author Info
Peter R. Mueser () (Department of Economics, University of Missouri-Columbia)
Kenneth R. Troske
David R. Stevens

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Abstract

State and federal reforms of the 1990s transformed the U.S. cash assistance program for single parents and their children. Despite an extensive literature examining these changes and their impacts, there have been few studies that consider the effects of these reforms from the perspective of the recent period. The analysis here focuses on the characteristics and employment of welfare recipients in Maryland and Missouri, 1991-2004. We find that there has been only modest change in the observable characteristics of those entering, remaining on or leaving welfare, but the importance of employment has grown for each of these groups. We also examine the dynamics of employment and welfare recidivism, comparing cohorts of leavers prior to and after welfare reform. We find that after welfare reform leavers are much more likely to be working. Although in Maryland those working have earnings that are somewhat below employed leavers prior to reform, in Missouri earnings for employed leavers are unchanged. In both states, the types of jobs leavers hold have not changed substantially, and leavers are less likely to return to welfare following reform.

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File URL: http://economics.missouri.edu/working-papers/2007/wp0720_mueser.pdf
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Publisher Info
Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 0720.

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Length: 61 pages
Date of creation: 15 Aug 2007
Date of revision:
Publication status: Forthcoming in Review of Economic and Statistics
Handle: RePEc:umc:wpaper:0720

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Related research
Keywords: welfare reform;

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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References listed on IDEAS
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  1. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Julia Lane & David Stevens, 2001. "Welfare-to-Work Outcomes: The Role of the Employer," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 1010-1021, April.
  4. Hilary Williamson Hoynes, 2001. "How are families who left welfare doing over time? a comparison of two cohorts of welfare leavers - commentary," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 21-22. [Downloadable!]
  5. Lane, Julia & Stevens, David, 1995. "Family, Work, and Welfare History: Work and Welfare Outcomes," American Economic Review, American Economic Association, vol. 85(2), pages 266-70, May. [Downloadable!] (restricted)
  6. Peter R. Mueser & Kyung-Seong Jeon & Andrew Dyke & Carolyn J. Heinrich & Kenneth R. Troske, 2006. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," Working Papers 0602, Department of Economics, University of Missouri. [Downloadable!]
    Other versions:
  7. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  8. Timothy J. Bartik, 1997. "Short-Term Employment Persistence for Welfare Recipients: The "Effects" of Wages, Industry, Occupation and Firm," Staff Working Papers 97-46, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  9. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August. [Downloadable!] (restricted)
    Other versions:
  10. Peter R. Mueser & Kenneth Troske & William J. Carrington, 2002. "The Impact of Welfare Reform on Leaver Characteristics, Employment and Recidivism," Working Papers 0205, Department of Economics, University of Missouri, revised 26 Aug 2002. [Downloadable!]
    Other versions:
  11. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August. [Downloadable!] (restricted)
    Other versions:
  12. V. Joseph Hotz & Guido W. Imbens & Jacob A. Klerman, 2006. "Evaluating the Differential Effects of Alternative Welfare-to-Work Training Components: A Reanalysis of the California GAIN Program," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 521-566, July. [Downloadable!]
  13. David C. Ribar, 2005. "Transitions from Welfare and the Employment Prospects of Low-Skill Workers," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 514-533, January.
  14. Robert A. Moffitt & David Stevens, 2001. "Changing Caseloads: Macro Influences and Micro Composition," JCPR Working Papers 218, Northwestern University/University of Chicago Joint Center for Poverty Research.
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  15. 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, vol. 116(3), pages 1063-1114, August. [Downloadable!] (restricted)
    Other versions:
  16. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January. [Downloadable!]
  17. 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. [Downloadable!] (restricted)
  18. Hilary Williamson Hoynes, 1996. "Work, Welfare, and Family Structure: What Have We Learned?," NBER Working Papers 5644, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. 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.
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  20. Pamela Loprest, 2001. "How are families who left welfare doing over time? a comparison of two cohorts of welfare leavers," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 9-19. [Downloadable!]
  21. Kenneth R Troske, 1994. "Evidence on the Employer Size-Wage Premium From Worker-Establishment Matched Data," Working Papers 94-10, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  22. V. J. Hotz & J. K. Scholz, . "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers 1224-01, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  23. Susan E. Mayer, 2000. "Why Welfare Caseloads Fluctuate: A Review of Research on AFDC, SSI, and the Food Stamps Program," JCPR Working Papers 166, Northwestern University/University of Chicago Joint Center for Poverty Research.
  24. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2005. "Welfare to Temporary Work: Implications for Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 154-173, December. [Downloadable!] (restricted)
    Other versions:
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