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Location and the Low Income Experience: Analyses of Program Dynamics in the Iowa Family Investment Program

Using Iowa state administrative data for the period 1993-95, this paper explores why some low-income households successfully leave public assistance while others who leave later return. The authors examine the role of employment, child support, earnings, and other support such as the Food Stamp Program (FSP) for recipients who leave Iowa's Family Investment Program (FIP). They also examine reasons for recidivism over time, with specific attention to local labor market conditions and factors that differentiate areas by degree of rural/metro location. The data show that, among those active in FIP in all months of the two-year period, employment increased. Multivariate analysis of recidivism shows that during the first two quarters, those in nonmetro areas were more likely to return to FIP; however, after this initial period, the risk of return was very similar in the two areas. This analysis provides specific results for better understanding of the impact of recent reforms on low-income households in a state that is relatively rural.

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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 00-wp244.

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Date of creation: Aug 2000
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Handle: RePEc:ias:cpaper:00-wp244
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  1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
  2. Mairead Reidy & Lucy Mackey-Bilaver & Robert M. Goerge & Yizu Yeh & Bong Joo Lee, 1998. "The Dynamics of AFDC, Medicaid, and Food Stamps: A Preliminary Report," JCPR Working Papers 48, Northwestern University/University of Chicago Joint Center for Poverty Research.
  3. repec:mpr:mprres:1916 is not listed on IDEAS
  4. Davis, Elizabeth E. & Connolly, Laura S. & Weber, Bruce A., 1999. "Employment Outcomes For Low-Income Adults In Rural And Urban Labor Markets," 1999 Annual meeting, August 8-11, Nashville, TN 21624, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Blank, Rebecca M & Ruggles, Patricia, 1994. "Short-Term Recidivism among Public-Assistance Recipients," American Economic Review, American Economic Association, vol. 84(2), pages 49-53, May.
  6. O'Neill, June A & Bassi, Laurie J & Wolf, Douglas A, 1987. "The Duration of Welfare Spells," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 241-48, May.
  7. G. Sandefur & S. Cook, . "Duration of Public Assistance Receipt: Is Welfare a Trap?," Institute for Research on Poverty Discussion Papers 1129-97, University of Wisconsin Institute for Research on Poverty.
  8. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
  9. P. D. Brandon, . "Vulnerability to future dependence among former AFDC mothers," Institute for Research on Poverty Discussion Papers 1055-95, University of Wisconsin Institute for Research on Poverty.
  10. Shirley L. Porterfield, 1998. "On the Precipice of Reform: Welfare Spell Durations for Rural, Female-Headed Families," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 994-999.
  11. Stephan J. Goetz & David Freshwater, 1997. "Effects of Welfare Reform on Rural Counties and Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1608-1613.
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