The Impact of Welfare Reform on Leaver Characteristics, Employment and Recidivism

56 Pages Posted: 24 Sep 2002

See all articles by William J. Carrington

William J. Carrington

Welch Consulting

Peter R. Mueser

University of Missouri; IZA Institute of Labor Economics

Kenneth R. Troske

University of Kentucky - Department of Economics; University of Missouri at Columbia - Department of Economics; IZA Institute of Labor Economics

Date Written: September 2002

Abstract

Welfare reform has transformed the U.S. cash assistance program for single parents and their children. Although there remains substantial uncertainty about the importance of reform in producing the subsequent decline in the welfare caseload, even less is known about its impact on the experiences and well being of former welfare recipients. The analysis here focuses on the characteristics and employment of welfare recipients in the state of Missouri over the period 1990-1999. We find that there has been little change in the observable characteristics of those entering, on, or leaving welfare, but there has been a dramatic growth in the importance of employment for all these groups. We also examine the dynamics of employment and welfare recidivism comparing cohorts of leavers prior to and after welfare reform. We find that after welfare reform leavers are much more likely to be working, have higher total earnings, work for employers with similar characteristics, and are less likely to return to welfare. These results suggest that welfare reform has not materially harmed welfare recipients.

Keywords: Welfare Reform, Employment Dynamics

JEL Classification: J0, I3

Suggested Citation

Carrington, William J. and Mueser, Peter R. and Troske, Kenneth R., The Impact of Welfare Reform on Leaver Characteristics, Employment and Recidivism (September 2002). Available at SSRN: https://ssrn.com/abstract=331060 or http://dx.doi.org/10.2139/ssrn.331060

William J. Carrington

Welch Consulting

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Peter R. Mueser

University of Missouri ( email )

331 Professional Building
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Columbia, MO 65211
United States
573-882-6427 (Phone)

HOME PAGE: http://web.missouri.edu/~mueser/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kenneth R. Troske (Contact Author)

University of Kentucky - Department of Economics ( email )

Lexington, KY 40506
United States

University of Missouri at Columbia - Department of Economics ( email )

118 Professional Building
Columbia, MO 65211
United States
573-882-4229 (Phone)
573-882-2697 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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