Does the Loss of Welfare Income Increase the Risk of Involvement with the Child Welfare System?

Using survey and administrative data from a study of welfare recipients in the Chicago metropolitan area, an analysis of the predictors of involvement with the child welfare system was conducted. Housing moves, births, and poor child health were strongly associated with child welfare risk. A number of indicators of economic hardship were also predictive of this outcome, including substantial declines in welfare income, lower monthly income levels, and problems with utility assistance, food shortages, and eviction threats. Welfare income declines were significantly associated with child welfare risk only in the absence of employment, and this interaction was particularly problematic for recipients who received welfare sanctions related to various requirements of the state public aid system. In light of these findings, a discussion is offered on the potential impact of welfare reform policies on child welfare systems.