Transitions from AFDC to SSI before welfare reform

Area of Science:

• Socioeconomics
• Public Policy Analysis
• Social Welfare Programs

Background:

• The Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC) programs serve overlapping low-income populations.
• Policy changes in one program can significantly impact the other due to shared characteristics of recipients.
• The 1996 welfare reform transformed AFDC into Temporary Assistance for Needy Families (TANF), with expected effects on SSI participation.

Purpose of the Study:

• To examine the interaction between SSI and AFDC in the prereform period (1990-1996).
• To discuss the potential implications of welfare reform on the SSI-AFDC interaction.
• To analyze the impact on young women and children.

Main Methods:

• Utilized matched data from the Survey of Income and Program Participation and Social Security Administration (SSA) records.
• Focused analysis on young women (18-40) and children (0-17).
• Examined program interactions during the 1990-1996 prereform period.

Main Results:

• A strong link exists between AFDC and SSI for young women and children.
• Many young female and child SSI beneficiaries were previously in or received AFDC.
• A substantial portion of AFDC recipients transitioned to SSI during this period.

Conclusions:

• The SSI program is serving a larger population of families with young women and children.
• The Social Security Administration (SSA) may need to develop targeted policies for this demographic.
• The prereform period presents challenges as a baseline for measuring TANF's impact due to policy instability.