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Welfare dependence and recidivism in an era of welfare reform

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  • Keng, Shao-Hsun
  • Garasky, Steven
  • Jensen, Helen H.

Abstract

This study examines the dynamics of welfare programme participation during the initial period (1993–1995) of programme reforms at the state-level in Iowa. The programme changes for the state were remarkably similar to the national reforms implemented in the USA in 1996. Analysis of the Family Investment Program (FIP) participation over the programme's first two years show that, on average, recipients stayed fewer months in the second year compared with the first, although a relatively large share of participants (36%) stayed on for the full two years. Fixed effect and semiparametric duration models are used to examine welfare dependence and recidivism, respectively. Results indicate that income from wages and child support are significant factors in reducing welfare participation. Child support and wage income are crucial in determining the chances of exiting and of staying off the programme, especially during the early months of the exit.

Suggested Citation

  • Keng, Shao-Hsun & Garasky, Steven & Jensen, Helen H., 2002. "Welfare dependence and recidivism in an era of welfare reform," ISU General Staff Papers 200201010800001267, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200201010800001267
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    Cited by:

    1. Chack-Kie Wong & Vivian Lou, 2010. "“I Wish to be Self-Reliant”: Aspiration for Self-Reliance, Need and Life Satisfaction, and Exit Dilemma of Welfare Recipients in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 95(3), pages 519-534, February.
    2. David Penn, 2009. "Financial well-being in an urban area: an application of multiple imputation," Applied Economics, Taylor & Francis Journals, vol. 41(23), pages 2955-2964.
    3. Luis Ayala & Magdalena Rodríguez, 2010. "Explaining welfare recidivism: what role do unemployment and initial spells have?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 373-392, January.

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