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Activation from Income Support in the US

In: Bringing the Jobless into Work? Experiences with Activation Schemes in Europe and the US

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Abstract

There is good news from the United States. The labour market is at nearly full employment and the number of persons receiving social assistance has reached a historically low level. This favourable economic context supported the political will for enactment of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA)1 – signifying the “end of welfare as we know it.” After decades of controversy over federal programmes for social assistance, the US Congress implemented a new activation concept, one containing a welfare-towork or Work-First approach while allowing wide discretion among the states in policy implementation. The aim was to reduce welfare dependency by helping welfare recipients leave welfare for work through supportive services and work requirements. The ultimate ambition of the reform was to convert the system from a presumption of state responsibility to one of individual responsibility. This posture regarding the government role for income security was implicit in other public programmes, and the 1996 welfare reforms replacing the Aid to Families with Dependent Children Program (AFDC) with the Temporary Assistance for Needy Families Program (TANF) brought social assistance into line with this principle.
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Suggested Citation

  • Benno Quade & Christopher J. O'Leary & Ockert Dupper, 2008. "Activation from Income Support in the US," Book chapters authored by Upjohn Institute researchers, in: Werner Eichhorst & Otto Kaufmann & Regina Konle-Seidl (ed.),Bringing the Jobless into Work? Experiences with Activation Schemes in Europe and the US, pages 345-414, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:uchaps:cjospringer
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    Keywords

    UNEMPLOYMENT; job training; employment policy; Unemployment insurance; Benefits;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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