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Policy

What has Welfare Reform Accomplished?: Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure
http://www.nber.org/papers/w7627
Robert F. Schoeni, Rebecca M. Blank

This paper evaluates the effectiveness of recent welfare reforms, investigating the effects of both state-specific waivers in the early 1990s and the 1996 federal reform legislation.  The authors analyze a wide array of indicators, including welfare participation, labor market involvement, earnings, income and poverty, and family formation.  They find strong evidence that these policy changes reduced public assistance participation and increased family earnings. The result was a rise in total family income and a decline in poverty. The gains from the 1996 reforms were not as broadly distributed across the distribution of less-skilled women as were the effects of waivers. Waivers also increased labor market involvement among the less-skilled, but the 1996 reforms had little additional impact on work behavior after controlling for economic forces. These policies also appeared to have an impact on family structure.

(Excerpted from information in What Has Welfare Reform Accomplished?: Impacts on Welfare Participation, Employment, Income, Poverty and Family Structure, February 2000, pg. 1, RAND, The Labor and Population Program, Working Paper Series 00-02, http://www.rand.org/pubs/monograph_reports/MR898/, and used with the permission of RAND, Santa Monica, CA , © 2000)





 

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