Welfare Reform And Its Long Term Consequences For America S Poor

Leading poverty experts address the longer-term effects of the Personal Responsibility and Work Opportunity Reconciliation Act.

This is the second in a series of books growing out of the annual Mid dlebury College Conference on Economic Issues. The second confer ence, held in April 1980, focused on goals and realities of welfare reform. The objectives of the conference were threefold: (1) evaluation of the antipoverty effort so far; (2) discussion of welfare reform alternatives; and (3) prediction of how new initiatives would change work behavior and productivity. During the time this country has been engaged in a "war on poverty," two massive efforts to reform welfare, Richard M. Nixon's Family As sistance Plan (FAP) and Jimmy Carter's Program for Better Jobs and Income (PBJI), were proposed. Both defined national benefit levels and featured a negative income tax. Both measures were defeated in Congress. More modest efforts at reform have, however, changed the economic landscape. Because of the rapid growth in cash and in-kind transfer programs, income poverty is no longer the serious problem that it was in 1964. In fact, looking at the proliferation of programs and the substantial surge in participation rates, some politicians have even advocated a period of government retrenchment. In 1971, the governor of California vii viii INTRODUCTION proposed (and implemented) a major welfare reform in an attempt to stem the rapid growth of welfare caseloads that began in his state in 1967-68. He argued that savings from administrative improvements could be used to raise benefits for the "truly needy.

In Welfare Reform, Jeffrey Grogger and Lynn Karoly assemble evidence from numerous studies to assess how welfare reform has affected behavior. To broaden our understanding of this wide-ranging policy reform, the authors evaluate the evidence in relation to an economic model of behavior.

The 1996 welfare reform bill marked the beginning of a new era in public assistance. Although the new law has reduced welfare rolls, falling caseloads do not necessarily mean a better standard of living for families. In For Better and For Worse, editors Greg J. Duncan and P. Lindsay Chase-Lansdale and a roster of distinguished experts examine the evidence and evaluate whether welfare reform has met one of its chief goals-improving the well-being of the nation's poor children. For Better and For Worse opens with a lively political history of the welfare reform legislation, which demonstrates how conservative politicians capitalize on public concern over such social problems as single parenthood to win support for the radical reforms. Part I reviews how individual states redesigned, implemented, and are managing their welfare systems. These chapters show that most states appear to view maternal employment, rather that income enhancement and marriage, as key to improving child well-being. Part II focuses on national and multistate evaluations of the changes in welfare to examine how families and children are actually faring under the new system. These chapters suggest that work-focused reforms have not hurt children, and that reforms that provide financial support for working families can actually enhance children's development. Part III presents a variety of perspectives on policy options for the future. Remarkable here is the common ground for both liberals and conservatives on the need to support work and at the same time strengthen safety-net programs such as Food Stamps. Although welfare reform-along with the Earned Income Tax Credit and the booming economy of the nineties-has helped bring mothers into the labor force and some children out of poverty, the nation still faces daunting challenges in helping single parents become permanent members of the workforce. For Better and For Worse gathers the most recent data on the effects of welfare reform in one timely volume focused on improving the life chances of poor children.

Friedlander and Burtless teach us why welfare reform will not be easy. Their sobering assessment of job training programs willenlighten a debate too often dominated by wishful thinking and political rhetoric. Look for their findings to be cited for many years to come. —Douglas Besharov, American Enterprise Institute A methodologically astute study that sheds considerable light on the potential for and limits to raising the employment and earnings of welfare recipients and provides benchmarks against which the impacts of later programs can be compared. —Journal of Economic Literature With welfare reforms tested in almost every state and plans for a comprehensive federal overall on the horizon, it is increasingly important for Americans to understand how policy changes are likely to affect the lives of welfare recipients. Five Years After tells the story of what happened to the welfare recipients who participated in the influential welfare-to-work experiments conducted by several states in the mid-1980s.The authors review the distinctive goals and procedures of evaluations performed in Arkansas, Baltimore, San Diego, and Virginia, and then examine five years of follow-up data to determine whether the initial positive impact on employment, earnings, and welfare costs held up over time. The results were surprisingly consistent. Low-cost programs that saved money by getting individuals into jobs quickly did little to reduce poverty in the long run. Only higher-cost educational programs enabled welfare recipients to hold down jobs successfully and stay off welfare. Five Years After ends speculation about the viability of the first generation of employment programs for welfare recipients, delineates the hard choices that must be made among competing approaches, and provides a well-documented foundation for building more comprehensive programs for the next generation. A sobering tale for welfare reformers of all political persuasions, this book poses a serious challenge to anyone who promises to end welfare dependency by cutting welfare budgets.

This volume combines essays by public policy scholars with comments by social project directors who speak from their experiences in the field. Essays include critical assessments of policies to reduce dependency on welfare and a discussion of the effects of poverty on women and children, as well as a look at welfare reform in Illinois.

The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 fundamentally changed the nation's social welfare system, replacing a federal entitlement program for low-income families, called Aid to Families with Dependent Children (AFDC), with state-administered block grants, the Temporary Assistance for Needy Families (TANF) program. PRWORA furthered a trend started earlier in the decade under so called "waiver" programs-state experiments with different types of AFDC rules-toward devolution of design and control of social welfare programs from the federal government to the states. The legislation imposed several new, major requirements on state use of federal welfare funds but otherwise freed states to reconfigure their programs as they want. The underlying goal of the legislation is to decrease dependence on welfare and increase the self-sufficiency of poor families in the United States. In summer 1998, the Office of the Assistant Secretary for Planning and Evaluation (ASPE) of the Department of Health and Human Services (DHHS) asked the Committee on National Statistics of the National Research Council to convene a Panel on Data and Methods for Measuring the Effects of Changes in Social Welfare Programs. The panel's overall charge is to study and make recommendations on the best strategies for evaluating the effects of PRWORA and other welfare reforms and to make recommendations on data needs for conducting useful evaluations. This interim report presents the panel's initial conclusions and recommendations. Given the short length of time the panel has been in existence, this report necessarily treats many issues in much less depth than they will be treated in the final report. The report has an immediate short-run goal of providing DHHS-ASPE with recommendations regarding some of its current projects, particularly those recently funded to study "welfare leavers"-former welfare recipients who have left the welfare rolls as part of the recent decline in welfare caseloads.

This is the second in a series of books growing out of the annual Mid dlebury College Conference on Economic Issues. The second confer ence, held in April 1980, focused on goals and realities of welfare reform. The objectives of the conference were threefold: (1) evaluation of the antipoverty effort so far; (2) discussion of welfare reform alternatives; and (3) prediction of how new initiatives would change work behavior and productivity. During the time this country has been engaged in a "war on poverty," two massive efforts to reform welfare, Richard M. Nixon's Family As sistance Plan (FAP) and Jimmy Carter's Program for Better Jobs and Income (PBJI), were proposed. Both defined national benefit levels and featured a negative income tax. Both measures were defeated in Congress. More modest efforts at reform have, however, changed the economic landscape. Because of the rapid growth in cash and in-kind transfer programs, income poverty is no longer the serious problem that it was in 1964. In fact, looking at the proliferation of programs and the substantial surge in participation rates, some politicians have even advocated a period of government retrenchment. In 1971, the governor of California vii viii INTRODUCTION proposed (and implemented) a major welfare reform in an attempt to stem the rapid growth of welfare caseloads that began in his state in 1967-68. He argued that savings from administrative improvements could be used to raise benefits for the "truly needy.