Welfare Reform and LoneMothers’ Employment inthe US

The Personal Responsibility and Work Opportunity Reconciliation Act(PRWORA) of 1996 represents a dramatic change in the US welfare state.One of its key goals was to move lone mothers, even those with youngchildren, from welfare to work. Early evidence suggests that, in concertwith a strong economy, progress has been made — welfare caseloadshave fallen dramatically and the employment rates of lone mothers haveincreased substantially.In addition to the federal reforms, state level welfare reformsplayed an important role prior to 1996 and are playing an even moreimportant role subsequent to 1996 as PRWORA gives statesunprecedented flexibility in designing and implementing their welfaresystems. In this paper, we examine some key state-level reforms, usingevidence from selected states, to illustrate the three major types ofpolicies used in the US to move lone mothers from welfare to work:mandating work (Michigan); making work pay (Michigan andMinnesota); and helping families with child care (Illinois). We concludethat each of these policies has a role to play in moving lone mothersfrom welfare to work, but that further policies are needed if the US is toalso to do a better job of reducing child poverty.[...]