WELFARE REFORM, EARNINGS, AND INCOMES: NEW EVIDENCE FROM THE SURVEY OF PROGRAM DYNAMICS

The authors ask how welfare reform has affected the earnings and incomes of welfare recipients using a detailed longitudinal data set, the recently released Survey of Program Dynamics (SPD). They find pre-TANF waivers positively affected the earnings and incomes of both female high school graduates and nongraduates, but the effect is statistically significant only for nongraduates. In contrast, the effect of TANF policies is detrimental to nongraduates but improves economic outcomes for graduates. The findings indicate there are still families who are left behind by welfare programs. The results also warrant further use of longitudinal data sets such as the SPD. (JEL "I38", "H53") Copyright 2005 Western Economic Association International.