Location and the Low Income Experience: Analyses of Program Dynamics in the Iowa Family Investment Program

In 1993, Iowa obtained a waiver to enact many of the key provisions of TANF in its welfare assistance and initiated the Iowa Family Investment Program (FIP). We use Iowa state administrative data for the period 1993-95 and study why some low-income households successfully leave public assistance while others who leave later return. The research explores the role of employment, earnings and other support such as Food Stamps and child support for FIP leavers. Geographic (metro and nonmetro) differences are of specific interest. Among those active in FIP in all months of the two-year period, employment increased. Multivariate analysis of recidivism shows that during the first two quarters, those in nonmetro areas were more likely to return to FIP; however, after this initial period, the risk of return was very similar in the two areas.