The Interaction of Welfare-Use and Employment Dynamics In Rural and Agricultural California Counties

Using both monthly aggregate county-level data and monthly individual-level data on welfare participation in California from 1985 to 1997, we show that welfare use patterns in rural and agricultural counties differ from those in urban counties. We also explain variation in welfare dynamics between various types of counties, focusing on labor market structure. Our research combines several administrative data sets in novel ways that make it possible to describe county and individual-level welfare and employment dynamics. Our results indicate that the impact of the 1996 federal welfare reforms is likely to vary systematically by type of county according to their distinct welfare-use and employment patterns. As a result, policymakers may want to tailor welfare policies and implementation strategies to county conditions to increase the effectiveness of the new welfare legislation in facilitating exits from welfare to work.