IDEAS home Printed from https://ideas.repec.org/a/wly/povpop/v13y2021i2p184-223.html
   My bibliography  Save this article

Ten years later: Self‐sufficiency of welfare mothers before the Great Recession

Author

Listed:
  • Denton R. Vaughan
  • Barbara A. Haley
  • Aref N. Dajani

Abstract

This paper presents a preliminary evaluation of the Temporary Assistance to Needy Families program, that was mandated by the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), showing trends over time in wages for mothers who received welfare benefits in 1996, using the power of a longitudinal data set: a nationally representative sample of 1000 welfare mothers in the 1996 Survey of Income and Program Participation (SIPP), linked to their IRS wage records from 1996 to 2007. Only one in ten of the 1996 cohort of welfare mothers received wages that were at least 175% of the poverty line by 2007. By 2007, only one in six of those with more than a high school diploma achieved this level of economic self‐sufficiency. For all time periods, the federal Earned Income Tax Credit, had a positive impact for only the lowest wage earners, that is, with earnings below half the poverty line. Our results provide a commentary on the validity of neoliberal assumptions underlying the long‐term implementation of the PRWORA. Analyses of future SIPP panels will determine whether these trends continued. 本文通过使用一项纵向数据集—1996年收入和计划参与调查（SIPP）中一项由1000名参与福利计划的母亲组成的全国代表性样本—并将该数据集与1996‐2007年间她们在美国国税局的工资记录相联系，展示了这些母亲随时间推移的工资趋势。她们之中仅有十分之一的人在2007年的收入不低于贫困线的175%。2007年，她们之中拥有高中文凭及以上的人里仅有六分之一实现了经济自足。在1996‐2007年里，联邦收入所得税抵免（EITC）仅对最低收入获得者产生了积极影响，即那些收入低于贫困线一半的人群。我们的研究结果初步评论了1996年《个人责任与就业机会协调法》（PRWORA）长期执行过程中隐藏的新自由主义假设。分析未来SIPP面板数据的研究将确定这些趋势是否会继续。 Este documento muestra las tendencias a lo largo del tiempo en los salarios de las madres que recibieron beneficios de asistencia social en 1996, utilizando el poder de un conjunto de datos longitudinal, una muestra representativa a nivel nacional de 1000 madres de asistencia social en la Encuesta de Ingresos y Participación en Programas de 1996 (SIPP), vinculada a su IRS. registros salariales de 1996 a 2007. Solo una de cada diez de la cohorte de 1996 de madres de bienestar recibió salarios que eran al menos el 175% de la línea de pobreza en 2007. En 2007, solo una de cada seis de las que tenían más de un diploma de escuela secundaria logró este nivel de autosuficiencia económica. Para todos los períodos de tiempo, el Crédito Tributario por Ingreso del Trabajo (EITC) tuvo un impacto positivo solo para los asalariados más bajos, es decir, con ingresos por debajo de la mitad de la línea de pobreza. Nuestros resultados proporcionan un comentario preliminar sobre los supuestos neoliberales que subyacen a la implementación a largo plazo de la Ley de Reconciliación de Responsabilidad Personal y Oportunidades Laborales de 1996 (PRWORA). Los análisis de los futuros paneles SIPP determinarán si estas tendencias continuaron.

Suggested Citation

  • Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2021. "Ten years later: Self‐sufficiency of welfare mothers before the Great Recession," Poverty & Public Policy, John Wiley & Sons, vol. 13(2), pages 184-223, June.
    • Handle: RePEc:wly:povpop:v:13:y:2021:i:2:p:184-223
    DOI: 10.1002/pop4.308
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/pop4.308
    Download Restriction: no
    File URL: https://libkey.io/10.1002/pop4.308?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce D. Meyer, 2007. "The U.S. Earned Income Tax Credit, its Effects, and Possible Reforms," Working Papers 0720, Harris School of Public Policy Studies, University of Chicago.
    2. 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, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
    3. David Harvey, 2007. "Neoliberalism as Creative Destruction," The ANNALS of the American Academy of Political and Social Science, , vol. 610(1), pages 21-44, March.
    4. Jeffrey B. Liebman, 1998. "The Impact of the Earned Income Tax Credit on Incentives and Income Distribution," NBER Chapters, in: Tax Policy and the Economy, Volume 12, pages 83-120, National Bureau of Economic Research, Inc.
    5. Harry J. Holzer & Michael A. Stoll, 2003. "Employer Demand for Welfare Recipients by Race," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 210-241, January.
    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. Rogers, Cynthia L., 1997. "Job Search and Unemployment Duration: Implications for the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 42(1), pages 109-132, July.
    8. Nicholas W Papageorge & Kevin Thom, 2020. "Genes, Education, and Labor Market Outcomes: Evidence from the Health and Retirement Study," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1351-1399.
    9. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
    10. repec:mpr:mprres:4956 is not listed on IDEAS
    11. Kerwin Kofi Charles & Ming Ching Luoh, 2010. "Male Incarceration, the Marriage Market, and Female Outcomes," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 614-627, August.
    12. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 1-41.
    13. Cervero, Robert & Sandoval, Onésimo & Landis, John, 2000. "Transportation as a Stimulus to Welfare-to-Work: Private Versus Public Mobility," University of California Transportation Center, Working Papers qt9q97b1tp, University of California Transportation Center.
    14. Ming-Chang Tsai, 2007. "Does globali zation affect human well-being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(1), pages 103-126, March.
    15. Jeanne Lafortune & Corinne Low, 2017. "Tying the Double-Knot: The Role of Assets in Marriage Commitment," American Economic Review, American Economic Association, vol. 107(5), pages 163-167, May.
    16. Jeffrey Grogger, 2004. "Welfare transitions in the 1990s: The economy, welfare policy, and the EITC," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 671-695.
    17. Sanford F. Schram & Joe Soss, 2001. "Success Stories: Welfare Reform, Policy Discourse, and the Politics of Research," The ANNALS of the American Academy of Political and Social Science, , vol. 577(1), pages 49-65, September.
    18. Nada Eissa & Jeffrey B. Liebman, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 605-637.
    19. Diane Colasanto & Arie Kapteyn & Jacques van der Gaag, 1984. "Two Subjective Definitions of Poverty: Results from the Wisconsin Basic Needs Study," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 127-138.
    20. Blumenberg, Evelyn A., 2003. "En-gendering Effective Planning: Spatial Mismatch, Low-Income Women, and Transportation Policy," University of California Transportation Center, Working Papers qt7kc7v38f, University of California Transportation Center.
    21. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    22. Kerwin Charles & Erik Hurst & Alexandra Killewald, 2013. "Marital Sorting and Parental Wealth," Demography, Springer;Population Association of America (PAA), vol. 50(1), pages 51-70, February.
    23. Laurent Gobillon & Harris Selod & Yves Zenou, 2007. "The Mechanisms of Spatial Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2401-2427, November.
    24. Duncan, Greg J. & Yeung, Wei-Jun J., 1995. "Extent and consequences of welfare dependence among America's children," Children and Youth Services Review, Elsevier, vol. 17(1-2), pages 157-182.
    25. Debabrata Talukdar, 2008. "Cost of Being Poor: Retail Price and Consumer Price Search Differences across Inner-City and Suburban Neighborhoods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(3), pages 457-471, July.
    26. Skocpol, Theda, 1987. "A Society without a ‘State’? Political Organization, Social Conflict, and Welfare Provision in the United States," Journal of Public Policy, Cambridge University Press, vol. 7(4), pages 349-371, October.
    27. David Varady & Carole Walker, 2003. "Using housing vouchers to move to the suburbs: How do families fare?," Housing Policy Debate, Taylor & Francis Journals, vol. 14(3), pages 347-382.
    28. Karen Christopher, 2004. "Welfare As We [Don'T] Know It: A Review And Feminist Critique Of Welfare Reform Research In The United States," Feminist Economics, Taylor & Francis Journals, vol. 10(2), pages 143-171.
    29. Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2020. "Trends Over Time in Employment for Mothers Who Received Welfare Benefits in 1996," Poverty & Public Policy, John Wiley & Sons, vol. 12(3), pages 271-303, September.
    30. Jan K. Brueckner & Yves Zenou, 2003. "Space and Unemployment: The Labor-Market Effects of Spatial Mismatch," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 242-262, January.
    31. Marianne Bitler & Jonah Gelbach & Hilary Hoynes & Madeline Zavodny, 2004. "The impact of welfare reform on marriage and divorce," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 213-236, May.
    32. Barbara A. Haley & Aref N. Dajani, 2015. "Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients," Poverty & Public Policy, John Wiley & Sons, vol. 7(4), pages 307-335, December.
    33. Dalit Contini & Matteo Richiardi, 2009. "Welfare stigma with decreasing employability," LABORatorio R. Revelli Working Papers Series 90, LABORatorio R. Revelli, Centre for Employment Studies.
    34. Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1063-1106, December.
    35. Van Winkle, Zachary & Struffolino, Emanuela, 2018. "When working isn’t enough: Family demographic processes and in-work poverty across the life course in the United States," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39, pages 365-380.
    36. Blumenberg, Evelyn, 2003. "En-gendering Effective Planning: Spatial Mismatch, Low-Income Women, and Transportation Policy," University of California Transportation Center, Working Papers qt20m3505v, University of California Transportation Center.
    37. Daniel Lichter, 2013. "Integration or Fragmentation? Racial Diversity and the American Future," Demography, Springer;Population Association of America (PAA), vol. 50(2), pages 359-391, April.
    38. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
    39. repec:ucp:bkecon:9780226114057 is not listed on IDEAS
    40. Lesley J. Turner & Sheldon Danziger & Kristin S. Seefeldt, 2006. "Failing the Transition from Welfare to Work: Women Chronically Disconnected from Employment and Cash Welfare," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 227-249, June.
    41. Ian Burn & Patrick Button & David Neumark, 2017. "Age Discrimination and Hiring of Older Workers," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    42. Susanna Loeb & Mary Corcoran, 2001. "Welfare, work experience, and economic self-sufficiency," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 1-20.
    43. Sheldon Danziger & Colleen M. Heflin & Mary E. Corcoran & Elizabeth Oltmans & Hui-Chen Wang, 2002. "Does it pay to move from welfare to work?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 671-692.
    44. Schiller, Bradley R, 1977. "Relative Earnings Mobility in the United States," American Economic Review, American Economic Association, vol. 67(5), pages 926-941, December.
    45. Lane, Julia & Stevens, David, 1995. "Family, Work, and Welfare History: Work and Welfare Outcomes," American Economic Review, American Economic Association, vol. 85(2), pages 266-270, May.
    46. Zachary Van Winkle & Emanuela Struffolino, 2018. "When working isn’t enough: Family demographic processes and in-work poverty across the life course in the United States," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 39(12), pages 365-380.
    47. Rosenheck, R., 1994. "Homelessness in America," American Journal of Public Health, American Public Health Association, vol. 84(12), pages 1885-1886.
    48. Sheldon Danziger & Colleen M. Heflin & Mary Corcoran & Elizabeth Oltmans, 2002. "Does it Pay to Move from Welfare to Work?," JCPR Working Papers 254, Northwestern University/University of Chicago Joint Center for Poverty Research.
    49. Barbara A. Haley, 2017. "Does Stigma Inhibit Labor Force Participation of Young Millennials Who Receive Housing Assistance?," Poverty & Public Policy, John Wiley & Sons, vol. 9(1), pages 71-95, March.
    50. Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(4), pages 1063-1106, December.
    51. Freeman, L., 2002. "America's affordable housing crisis: A contract unfulfilled," American Journal of Public Health, American Public Health Association, vol. 92(5), pages 709-712.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2020. "Trends Over Time in Employment for Mothers Who Received Welfare Benefits in 1996," Poverty & Public Policy, John Wiley & Sons, vol. 12(3), pages 271-303, September.
    2. Elliott Isaac, 2020. "Marriage, Divorce, and Social Safety Net Policy," Southern Economic Journal, John Wiley & Sons, vol. 86(4), pages 1576-1612, April.
    3. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
    4. Meyer, Bruce D. & Sullivan, James X., 2004. "The effects of welfare and tax reform: the material well-being of single mothers in the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1387-1420, July.
    5. V. Joseph Hotz & John Karl Scholz, 2006. "Examining the Effect of the Earned Income Tax Credit on the Labor Market Participation of Families on Welfare," NBER Working Papers 11968, National Bureau of Economic Research, Inc.
    6. 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.
    7. Simpson, Nicole B., 2013. "Families, Taxes and the Welfare System," IZA Discussion Papers 7369, Institute of Labor Economics (IZA).
    8. William N. Evans & Craig L. Garthwaite, 2014. "Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 258-290, May.
    9. Eamon, Mary Keegan & Wu, Chi-Fang & Zhang, Saijun, 2009. "Effectiveness and limitations of the Earned Income Tax Credit for reducing child poverty in the United States," Children and Youth Services Review, Elsevier, vol. 31(8), pages 919-926, August.
    10. Tiago Freire, 2018. "Wage Subsidies And The Labor Supply Of Older People: Evidence From Singapore’S Workfare Income Supplement Scheme," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(05), pages 1101-1139, December.
    11. Cancian, Maria & Levinson, Arik, 2006. "Labor Supply Effects of the Earned Income Tax Credit: Evidence From Wisconsin's Supplemental Benefit for Families With Three Children," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 781-800, December.
    12. Elira Kuka & Na'ama Shenhav, 2020. "Long-Run Effects of Incentivizing Work After Childbirth," Working Papers 2020-10, The George Washington University, Institute for International Economic Policy.
    13. Nada Eissa & Hilary W. Hoynes, 2006. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Chapters, in: Tax Policy and the Economy, Volume 20, pages 73-110, National Bureau of Economic Research, Inc.
    14. Donald P. Hirasuna & Thomas F. Stinson, 2007. "Urban and Rural Differences in Use of Earned Income Credits: A Study of Minnesota's Working Family Credit," International Regional Science Review, , vol. 30(4), pages 408-448, October.
    15. Julia Shu-Huah Wang, 2021. "State TANF Time Limit and Work Sanction Stringencies and Long-Term Trajectories of Welfare Use, Labor Supply, and Income," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 650-696, December.
    16. Hirasuna, Donald P. & Stinson, Thomas F., 2004. "Urban And Rural Differences In Utilization Of State Earned Income Tax Credit Programs: Minnesota'S Experience," Working Papers 18912, Oregon State University, Rural Poverty Research Center (RPRC).
    17. Matteo Picchio & Giacomo Valletta, 2018. "A welfare evaluation of the 1986 tax reform for married couples in the United States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(3), pages 757-807, June.
    18. Shirley Peter, 2020. "First-time mothers and the labor market effects of the earned income tax credit," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-53, March.
    19. Nada Eissa & Hilary W. Hoynes, 2006. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Chapters,in: Tax Policy and the Economy, Volume 20, pages 73-110 National Bureau of Economic Research, Inc.
    20. Kelly Bishop & Bradley Heim & Kata Mihaly, 2009. "Single Women's Labor Supply Elasticities: Trends and Policy Implications," ILR Review, Cornell University, ILR School, vol. 63(1), pages 146-168, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:povpop:v:13:y:2021:i:2:p:184-223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1944-2858 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.