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"Leavers" from TANF and AFDC: how do they fare economically?
Martha N Ozawa1, Hong-Sik Yoon
1George Warren Brown School of Social Work, Washington University, St. Louis, MO 63130-4899, USA. ozawa@wustl.edu
Social Work
|September 13, 2005
Summary
The study found that families leaving Temporary Assistance for Needy Families (TANF) experienced a decline in income, unlike those who left the previous Aid to Families with Dependent Children (AFDC) program. This suggests stricter TANF regulations negatively impacted economic well-being post-assistance.
Area of Science:
- Social Sciences
- Economics
- Public Policy
Background:
- The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 introduced Temporary Assistance for Needy Families (TANF), altering federal income support for low-income families.
- TANF imposed stricter regulations on recipients compared to the previous Aid to Families with Dependent Children (AFDC) program, impacting life course flexibility.
Purpose of the Study:
- To compare the economic outcomes of families who left TANF with those who left AFDC.
- To investigate the impact of TANF's stricter controls on the economic well-being of families transitioning off cash assistance.
Main Methods:
- Utilized data from the 1993 and 1996 Survey of Income and Program Participation.
- Conducted a comparative analysis of economic trajectories for TANF leavers versus AFDC leavers.
Main Results:
- Families leaving AFDC experienced a significant increase in their income status.
- Families leaving TANF, however, showed a decline in their economic standing.
- Stricter controls under TANF appeared to correlate with poorer economic outcomes for leavers.
Conclusions:
- TANF's stringent regulations may hinder the economic advancement of families transitioning off cash assistance.
- Policy shifts from AFDC to TANF resulted in divergent economic pathways for low-income families exiting welfare programs.