Does It Pay to Move from Welfare to Work?

Autor/inn/en	Danziger, Sheldon; Heflin, Colleen M.; Corcoran, Mary E.; Oltmans, Elizabeth; Wang, Hui-Chen
Titel	Does It Pay to Move from Welfare to Work?
Quelle	In: Journal of Policy Analysis and Management, 21 (2002) 4, S.671-692 (22 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0276-8739
DOI	10.1002/pam.10080
Schlagwörter	Income; Poverty; Mothers; Welfare Recipients; Welfare Services; Surveys; One Parent Family; Labor Market; Interviews; Incentives + Suchen Sie Ihr Suchwort? Einkommen; Armut; Mother; Mutter; Sozialhilfeempfänger; Sozialhilfeempfängerin; Fürsorgeeinrichtung; Survey; Umfrage; Befragung; Single parent family; Ein-Eltern-Familie; Labour market; Arbeitsmarkt; Interviewing; Interviewtechnik; Anreiz
Abstract	The 1996 Personal Responsibility and Work Opportunity Reconciliation Act requires welfare recipients to look for work and has made it more difficult for nonworking recipients to remain on the welfare rolls. In addition, the economic boom of the 1990s and changes in federal and state policies have raised the net income gain associated with moving from welfare to work. This paper analyzes data from a panel survey of single mothers, all of whom received welfare in February 1997. In 1999, those who left welfare and were working had a higher household income and lower poverty rate, experienced a similar level of material hardship, engaged in fewer activities to make ends meet, and had lower expectations of experiencing hardship in the near future than did nonworking welfare recipients. Estimations of fixed-effect regressions of income that control for both observable and unobservable time-invariant characteristics show that monthly net income increases by $2.63 for every additional hour of work effort. About 60 percent of the observed monthly income difference between wage-reliant and welfare-reliant mothers can be attributed to differences in their work effort. Thus, after welfare reform, it does pay to move from welfare to work. (Contains 6 tables and 21 footnotes.) (Author).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10