Do Financial Incentives Encourage Welfare Recipients to Work?


Book Description

This paper reports on a randomized evaluation of an earnings subsidy offered to long-term welfare recipients in Canada. The program -- known as the Self-Sufficiency Project (SSP) -- provides a supplement equal to one-half of the difference between a target earnings level and a participant's actual earnings. The SSP supplement is similar to a negative income tax with two important differences: (1) eligibility is limited to long-term welfare recipients who find a full-time job; and (2) the payment depends on individual earnings rather than family income. Our evaluation is based on a classical randomized design: one half of a group of single parents who had been on welfare for over a year were eligible to receive the SSP supplement, while the other half were assigned to a control group. Results for an early cohort of SSP participants and controls suggest that the financial incentives of the Self-Sufficiency Program increase labor market attachment and reduce welfare participation.







Would Financial Incentives for Leaving Welfare Lead Some People to Stay on Welfare Longer?


Book Description

The Self-Sufficiency Project (SSP) is a large scale social experiment being conducted in Canada to evaluate the effects of an earnings supplement (or subsidy) for long-term welfare recipients who find a full-time job and leave income assistance. The supplement is available to single parents who have received income assistance for a year or more, and typically doubles the gross take-home pay of recipients. A critical issue in the evaluation of SSP is whether the availability of the supplement would lead some new income assistance recipients to prolong their stay on welfare in order to gain eligibility. A separate experiment was conducted to measure the magnitude of this effect. One half of a group of new applicants was informed that they would be eligible to receive SSP if they stayed on income assistance for a year; the other half was randomly assigned to a control group. Our analysis indicates a very modest exit







Health, Well-being, and Financial Self-sufficiency of Low-income Families in the Context of Welfare Reform


Book Description

The Personal Responsibility and Work Reconciliation Act of 1996 brought several changes to the welfare system. Among these changes are lifetime limits for receiving welfare benefits, and work requirements intended to foster economic self-sufficiency in welfare recipients. In the past few years, it has been acknowledged that there are challenges and barriers to the latter requirement such as quality affordable childcare, transportation, and the availability of suitable jobs. Also needing to be addressed are the health concerns of family members that may also present as a challenge or barrier to attempts to obtain and maintain economic self-sufficiency. This study examined how health functions as a challenge or a barrier to economic self-sufficiency in a low-income rural population. The sample consisted of 73 families enrolled in the Rural Families Speak Project, a multistate collaboration examining the effects of welfare reform on the well-being of low-income rural families. Mothers are the primary respondents to semi-structured interviews consisting of open-ended questions and fixed choice survey measures. Using qualitative research methods, and guided by an ecological perspective that considers multiple levels of influence on individuals and families, interviews were analyzed for thematic content having to do with health, well-being, mental health, and experiences with and perceptions of welfare. Quantitative findings are reported well. Findings indicated that health interferes with economic self-sufficiency in several ways. Adult health problems can limit or preclude the ability to find and keep work or acquire an education, as well as require out of pocket expenditures when adults are uninsured or underinsured. Child health problems can affect families in the same ways, and by limiting or interfering with the child's own education. Furthermore, welfare and other social agency policies may impact the health of low-income populations through the reduction of services. Socioeconomic position can influence health outcomes through several different means, including access to and availability of health care, public and private social relationships, exposure to adverse conditions at home and in the workplace, social deprivation, and the social milieu. It is suggested that welfare policymakers consider these factors and adopt an ethic of care when making welfare policy decisions.




Self-Sufficiency for Poor Families


Book Description

Examines how housing & social service policies affect beneficiaries, particularly persons receiving public assistance, when such beneficiaries gain employment & experience a rise in income. Also analyzes the extent to which existing laws regarding housing & other programs create disincentives to upward income mobility. Charts & tables. Also includes a 30-page report by the Nat. Research Council, Institute of Medicine: New Findings on Children, Families, & Economic Self-Sufficiency: Summary of a Research BriefingÓ (1995).




Welfare Realities


Book Description

They offer suggestions for identifying potential long-term recipients so that resources can be targeted to encourage self-sufficiency. Finally, the authors present recommendations for changing the current welfare system.







The Development of Economic Self-Sufficiency Among Former Welfare Recipients


Book Description

In 1996, the US Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, changing the culture of welfare from a system of dependency to one of personal responsibility and economic self-sufficiency through workplace participation. Through the expert views of case managers and area employers of Wisconsin, this research sought to identify the problems and barriers to self-sufficiency among former welfare recipients and other low-income workers and the effectiveness of services and programs available to address these barriers. The study found situational barriers, education and learning experience barriers, personal issues and disabilities to impede the development of low-income workers. The services found to promote the development of economic self-sufficiency among former welfare recipients were support services, educational and learning programs, employer intervention services and counseling services. The findings suggest that these services could be expanded and made more effective through the collaborative efforts of welfare reform agencies, employers, educational institutions and community-based organizations.