How Welfare Reform is Affecting Women's Work

Abstract

The new welfare system mandates participation in work activity. We review the evolution of the 1996 legislation and how states implement welfare reform. We examine evidence on recipients' employment, well-being, and future earnings potential to assess the role of welfare in women's work. Policies rewarding work and penalizing nonwork, such as sanctions, time limits, diversion, and earnings "disregards," vary across states. While caseloads fell and employment rose, most women who left welfare work in low-wage jobs without benefits. Large minorities report material hardships and face barriers to work including depression, low skills, or no transportation. And disposable income decreased among the poorest female-headed families. Among the important challenges for future research is to differentiate between the effects of welfare reform, the economy, and other policies on women's work, and to assess how variations in state welfare programs affect caseloads and employment outcomes of recipients.

Single Mothers, Social Capital, and Work-Family Conflict

“…Women who lack previous work experience, who do not have a high school degree, and who have more than two children are at increased risk of employment instability and lower incomes (Corcoran, Danziger, Kalil, & Seefeldt, 2000).…”

An Investigation of the Strategies used by Organizations Participating in the Welfare-to-Work Network Programs and Correlation of the Strategies with the Retention Data to Determine Best Practices for Job Retention among Former Welfare Recipients.

“…Individuals with few earnings and those who became unemployed were automatically eligible for benefits, and as unemployment rose, so did caseloads. The cyclical nature of AFDC was a key component of the program's ability to respond to periods of economic crisis for families who were unable to find work and in need of assistance; but over time its intent was rendered counter-productive due to the rapid growth of the number of recipients who come to view the program as a permanent income entitlement, rather than being a temporary assistance (Corcoran, et al, 2000). From its inception, the system drew critics.…”

“…Some complained that the system was not effective enough in getting people to work. Others simply believed the federal government should not administer a welfare system (Corcoran et al, 2000). Some of the social ills developed from welfare, occurred as a result of how early welfare policies were written.…”

“…Work First programs use a labor force attachment model that assumes that finding a job and developing work skills through direct experience, rather than participating in education and training, is the best way to move recipients off the rolls (Corcoran et al, 2000). However, as seen in the present economic climate the "work first" culture of welfare reform made little sense even in the best of times, because it fails to put families on a path out of poverty; instead it creates added pressures and barriers to employment (Rangarajan, 1998).…”

“…The severity of sanctioning varied significantly across states and local offices; some severe enough to draw criticism from opponents who argued that sanctioning produced the opposite effects (Corcoran et al, 2000;Danziger, 1999).…”