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Welfare Time Limits in the United States – Experiences with a New Welfare-to-Work Approach

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  • Wolfgang Ochel

Abstract

This paper reviews the evidence on welfare time limits in the United States. It primarily refers to experimental and econometric evaluations. Time limits affect welfare recipients both before and after their limits are reached. Time limits reduce welfare receipt and increase employment before recipients reach the limit, as recipients "hoard" their months of eligibility for future use. Once recipients begin to exhaust their benefit entitlements, welfare use falls sharply. A large proportion of time-limit leavers, however, continues to receive Food Stamps, Medicaid, etc. The impact on employment is mixed. Income effects change from positive to neutral in subsequent periods.

Suggested Citation

  • Wolfgang Ochel, 2004. "Welfare Time Limits in the United States – Experiences with a New Welfare-to-Work Approach," CESifo Working Paper Series 1210, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1210
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp1210.pdf
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    References listed on IDEAS

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    1. 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, Oxford University Press, vol. 116(3), pages 1063-1114.
    2. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, vol. 96(4), pages 988-1012, September.
    3. 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.
    4. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, vol. 96(4), pages 988-1012, September.
    5. Christopher A. Swann, 2005. "Welfare Reform When Recipients Are Forward-Looking," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    6. Jeffrey Grogger, 2004. "Time Limits and Welfare Use," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    7. Jeffrey Grogger & Charles Michalopoulos, 2003. "Welfare Dynamics under Time Limits," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 530-554, June.
    8. Jeffrey Grogger, 2002. "The Behavioral Effects of Welfare Time Limits," American Economic Review, American Economic Association, vol. 92(2), pages 385-389, May.
    9. Rebecca M. Blank, 2001. "Declining caseloads/increased work: what can we conclude about the effects of welfare reform?," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 25-36.
    10. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. 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.
    12. James P. Ziliak & David N. Figlio & Elizabeth E. Davis & Laura S. Connolly, 2000. "Accounting for the Decline in AFDC Caseloads: Welfare Reform or the Economy?," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 570-586.
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    Cited by:

    1. Hau Chyi, 2012. "The 1993 EITC expansion and low-skilled single mothers’ welfare use decision," Applied Economics, Taylor & Francis Journals, vol. 44(13), pages 1717-1736, May.

    More about this item

    Keywords

    Sozialhilfe; Dauer; Vereinigte Staaten; Welfare payments; Duration; United States;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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