How is ‘welfare‐to‐work’ shaped by contingencies of economy, welfare policy and human capital?

Abstract

This research weighed the impact made by the economy, welfare policy and human capital on unemployed welfare mothers in the USA. Specifically, it asked how welfare mothers’ employment status, poverty status, and enrolment for Temporary Assistance for Needy Families (TANF) are affected by these three factors. Longitudinal data from the Survey of Income Program Participation (SIPP) provided a sample of TANF mothers. The SIPP data shed light on modes of economic adaptation exhibited by these mothers. Event history analysis was applied to the data (for years 1996–2000), and results were obtained showing that restrictive welfare policies combined with high unemployment can boost the number of working poor Americans by severing them from TANF. Human capital contingencies – which here comprised development of the sample's occupational skills, work experience and education – helped TANF mothers gain employment and even leave welfare. Some were able to do so and live above the poverty level. Social support, especially family support, was another factor included in this study that was found to be of some use to unemployed mothers in terms of finding work. Results bear several implications for TANF policy.

Heavy Alcohol Use, Alcohol and Drug Screening and their Relationship to Mothers' Welfare Participation: A Temporal-ordered Causal Analysis

“…Analytical results from the present study confirm that current welfare participation predicts welfare participation in the subsequent year; findings of some prior studies are similar (Cheng, 2007a; Cheng and McElderry, 2007). Furthermore, among mothers participating in welfare, the rate of heavy alcohol use (8.3 per cent, lower than the rate reported by Grant and Dawson in 1996) was 2.5 times that of mothers not participating (3.3 per cent).…”

Families with young children in times of economic downturn: Implications for social work practice

“…Support for the respondents ranged from informative support, to practical support, to emotional support. This aligns with previous research (Cheng, ; Geens & Vandenbroeck, ). Our findings indicate that the support the respondents received was conditional as to quantity, nature and quality.…”

Financial self‐sufficiency or return to welfare? A longitudinal study of mothers among the working poor

“…When up to one‐third of departures from TANF through work result simply from economic and employment growth (Kaushal & Kaestner, 2001), it is probable that ensuing downturns create substantial numbers of returns to TANF. High unemployment rates have shown an association with the departure of recipients from TANF programs to become employed although poor (Cheng, 2007a). Furthermore, former TANF recipients in one study were likelier to return to TANF during a weak job market (Loprest, 2003).…”

“…Individual states enforce TANF's reform policies, which impel former participants to continue to be employed, eschewing the decision to return to welfare. One American study found that states having relatively restrictive TANF policies saw relatively more recipients depart TANF to become working poor (Cheng, 2007a). A state's welfare policies might include required employment after a given period of TANF receipt, as well as a lifetime cap on receipt of TANF.…”