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Welfare Reform and Immigrants: Does the Five-year Ban Matter?

In: Immigration

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  • Robert Kaestner
  • Neeraj Kaushal

Abstract

Welfare reform banned newly arrived immigrants who came to the US after 1996 from receiving federally funded benefits for five years. One assessment of the success of the five-year ban is the effect it has on behaviors that determine economic success and the likelihood of becoming a public charge. In this chapter, we investigate the effect of the five-year ban on the employment, hours of work, and wages of low-income women. Our results indicate that welfare reform in general caused a significant increase in the employment of low-educated, unmarried mothers regardless of citizenship. Among non-citizens, welfare reform was associated with a 10 percentage point (26%) increase in employment, a two-hour (15%) increase in hours worked per week, and a 10 percent decrease in wages. Surprisingly, we find little evidence that the five-year ban had any additional effect on the employment, hours of work, and wages of low-educated and unmarried, non-citizen mothers.

Suggested Citation

  • Robert Kaestner & Neeraj Kaushal, 2007. "Welfare Reform and Immigrants: Does the Five-year Ban Matter?," Research in Labor Economics, in: Immigration, pages 311-347, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(07)00008-8
    DOI: 10.1016/S0147-9121(07)00008-8
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    Cited by:

    1. Kaushal, N., 2007. "Do food stamps cause obesity?: Evidence from immigrant experience," Journal of Health Economics, Elsevier, vol. 26(5), pages 968-991, September.
    2. Catalina Amuedo-Dorantes & Susan L. Averett & Cynthia A. Bansak, 2016. "Welfare reform and immigrant fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 757-779, July.

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