Welfare Reform and the Living Arrangements of Single Mothers

Scott J. Susin, U.S. Census Bureau
Laura E. Adler, U.S. Census Bureau

One potential consequence of the drop in welfare caseloads associated with welfare reform is its effect on living arrangements. If tougher welfare rules have reduced the income of single mothers by limiting access to the program, one consequence may be that more are choosing to share resources by living with others, such as a parent. We have investigated trends in living arrangements using 16 years of data from the Current Population Survey (CPS). In order to separate the effects of welfare reform, economic conditions, and other factors, we used confidential geocoded census data to control for county level employment rates as well as the usual demographics. The study also relied upon three treatment/comparison group strategies: 1) states with tougher or more lenient welfare policies, 2) trends in states with varying falls in the welfare caseloads, and 3) trends in low- and higher-income neighborhoods (census tracts).