The Effects of Welfare Reform on Income, Earnings, and Poverty

Marianne Bitler, RAND
Jonah B. Gelbach, University of Maryland
Hilary W. Hoynes, University of California at Davis

Labor market outcomes of welfare recipients have been the subject of a large and growing literature in recent years. Much of the previous research on labor market outcomes has focused on aggregate caseload levels or on randomized social experiments. A third strand of papers examines the relationship between welfare reform and various outcomes using national survey data. Our research builds on this literature by using data from the CPS to analyze the effects of recent welfare reforms on labor market outcomes, income, and poverty status of households and families with women and/or children. In addition to examining the effects of welfare reform on income (personal, family, and household), we examine the number of earners (male and female) as well as the sources of income. By looking at samples with children as well as those with women, we can see if there are different effects of welfare reform on these subgroups.