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Welfare Reform in the US: Early Evidence of Impacts

Author

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  • Barbara Wolfe

    (University of Wisconsin)

Abstract

In this paper, evidence on lessons that Australians might take from the experience of the United States in undertaking extensive welfare reform is presented as well as some insights into the difficulties in evaluating major policy shifts such as welfare reform. The experience of former welfare recipients in one state, Wisconsin, using detailed administrative data on two cohorts of former recipients is the focus of the discussion, augmented by analysis of related experiments in order to include child-well-being as an outcome. The reform clearly increased self sufficiency via an increase in work effort. Earnings and earnings inequality both increased over time. School-aged and younger children appear on average to not have been harmed and some may be better off. Alternatively, evidence suggests that some adolescents are worse off.

Suggested Citation

  • Barbara Wolfe, 2002. "Welfare Reform in the US: Early Evidence of Impacts," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 5(4), pages 457-470, December.
    • Handle: RePEc:ozl:journl:v:5:y:2002:i:4:p:457-470
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    Cited by:

    1. Patricia J. Lucas & Karen McIntosh & Mark Petticrew & Helen M. Roberts & Alan Shiell, 2008. "Financial Benefits for Child Health and Well‐Being in Low Income or Socially Disadvantaged Families in Developed World Countries," Campbell Systematic Reviews, John Wiley & Sons, vol. 4(1), pages 1-93.

    More about this item

    Keywords

    Fiscal Policies and Behaviour of Economic Agents: Household (Effects on Labour Supply) Social security and public pensions Government programs; provision and effects of welfare programs;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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