Race,work, and welfare: Attitudes toward the required employment of young mothers who use welfare

This study examines the views of blacks and whites toward the required employment of mothers who have young children and who use welfare. Using national survey data collected in 1988, attitudes toward these women are analyzed as a function of sociodemographic characteristics and various measures of inequality-related beliefs. Findings indicate that blacks are more likely than whites to agree that mothers using welfare should work in exchange for their benefits, although neither racial group overwhelmingly approves of such an exchange. Further, black attitudes are influenced more by economic self interest and other sociodemographic attributes than by stratification beliefs and the perceived consequences of welfare, the reverse is true for whites. The policy implications of these and other results for research on policy attitudes are discussed.This article is based on a paper, presented at the Southern Sociological Society meetings in Chattanooga, TN, 3 April 1993.     

Racial opportunity structures and black fertility

This paper develops and tests hypotheses about the impact of opportunity structures on black fertility across local labor markets. US Vital Statistics and Census of Population data are combined and then examined with regression techniques to estimate the effect of both race-specific and relative measures of opportunity structure on black fertility in the United States. The results show that relative female opportunity structure has a negative relationship with black total fertility rates as well as with birth rates for specific points along the reproductive age structure. However, the hypothesized relationship between relative male opportunity structures and black fertility is not supported. We discuss these results as they relate to minority fertility theory and as they relate to public policy concerns.     

Demographic behavior and the welfare state

The evaluation of the effects of tax and transfer programs on demographic behavior raises a number of difficult econometric issues related to identification of program effects. The main issue concerns whether there exists the true exogenous variation in program parameters necessary to estimate the effects of the program on behavior. This paper provides a discussion of the types of exogenous variation that are commonly available as well as the pitfalls in using potentially endogenous sources of variation. The general points are illustrated with an example drawn from the demographic literature in the United States. The paper concludes with a recommendation that the source of exogenous variation in program parameters be carefully examined in any study undertaken.Presented at the Second Annual Conference of the European Society for Population Economics, University of Mannheim, June 23–25, 1988. The author would like to thank the participants of the conference for their comments and, in particular, Bjorn Gustafsson, Siv Gustafsson, and Denis Kessler for their information on Swedish and French tax and transfer programs. Joseph Hotz also provided useful comments.     

Immigrant and native responses to welfare reform

We investigate the effect of welfare reform in the US on the employment and hours of work of low-educated foreign-born and native-born women. For foreign-born women, we investigate whether the effect of welfare reform differed by year of immigration. We also examine whether the immigrant provisions of welfare reform had a chilling effect on those who remained eligible for benefits. Results suggest that welfare reform induced low-educated women to increase their labor market attachment; reform had larger effects on the least educated native-born women and among foreign-born, larger effects on more recent arrivals. The chilling hypothesis is not supported.All correspondence to Robert Kaestner. The authors thank Lynn Karoly, Christoph Schmidt, seminar participants at the University of Illinois and New School University, and several anonymous referees for comments on a previous draft of this paper. Robert Kaestner is grateful to the Luce Foundation for partial support for this research. Responsible editor: Christoph M. Schmidt.     

Transitions in welfare participation and female headship

This study uses data from the 1990, 1992, 1993 and 1996 panels of the Survey of Income and Program Participation to examine how welfare policies and local economic conditions contribute to women's transitions into and out of female headship and into and out of welfare participation. It also examines whether welfare participation is directly associated with longer spells of headship. The study employs a simultaneous hazards approach that accounts for unobserved heterogeneity in all of its transition models and for the endogeneity of welfare participation in its headship model. The estimation results indicate that welfare participation significantly reduces the chances of leaving female headship. The estimates also reveal that more generous welfare benefits do not directly contribute to headship but rather contribute indirectly to headship by increasing the chances that a mother will enter welfare and consequently remain a single mother for longer. More generous Earned Income Tax Credit benefits are associated with more stable arrangements for both headship and welfare participation. Other measures of welfare policies, including indicators for the adoption of welfare waivers and the implementation of Temporary Assistance for Needy Families programs, are generally not significantly associated with headship or welfare receipt. Better economic opportunities are estimated to increase headship but reduce welfare participation among unmarried mothers.     

Transitions in welfare participation and female headship

This study uses data from the 1990, 1992, 1993 and 1996 panels of the Survey of Income and Program Participation to examine how welfare policies and local economic conditions contribute to women's transitions into and out of female headship and into and out of welfare participation. It also examines whether welfare participation is directly associated with longer spells of headship. The study employs a simultaneous hazards approach that accounts for unobserved heterogeneity in all of its transition models and for the endogeneity of welfare participation in its headship model. The estimation results indicate that welfare participation significantly reduces the chances of leaving female headship. The estimates also reveal that more generous welfare benefits do not directly contribute to headship but rather contribute indirectly to headship by increasing the chances that a mother will enter welfare and consequently remain a single mother for longer. More generous Earned Income Tax Credit benefits are associated with more stable arrangements for both headship and welfare participation. Other measures of welfare policies, including indicators for the adoption of welfare waivers and the implementation of Temporary Assistance for Needy Families programs, are generally not significantly associated with headship or welfare receipt. Better economic opportunities are estimated to increase headship but reduce welfare participation among unmarried mothers.     

The Population Program's Medium-Term Plan: a blueprint for welfare

The Population Program in the Philippines initially was preoccupied with the problem of fertility reduction. From 1981-85, the program will be carrying out a 5-year population plan which aims at the reduction of fertility as well as the broader goal of enhancing the well-being of the family and of society. Called the Medium Term Plan, this population plan began to evolve in January 1978 when President Marcos called for a comprehensive review of the population program in the context of the country's overall development plans. The Special Committee to Review the Philippine Population Program, worked from February to June 1978 and focused attention on the policy, program, and research components of the population program. They assessed the achievements of the program, analyzed its limitations, and recommended future policy and program thrusts. In performing its task, the committee observed the following guidelines: 1) the program must be evaluated by taking into account the overall development goals that are directly related to the population problem, 2) the program must be evaluated in its totality, 3) the concept of family planning must be redefined as family planning and welfare, 4) research must be recognized as a vital instrument for program formulation, and 5) the population program must be evaluated with an awareness of the role of financial and institutional support in its implementation. The committee's findings stressed the need to link family planning efforts with the rest of socioeconomic issues outlined in the government's 5-year development plan for 1978-82. The broad objective of the National Population Program is to reduce the population growth rate to levels that promote national welfare and individual well-being. Under the Medium Term Plan the population growth rate should be reduced from an estimated 2.3% to an estimated 2.0% in 1985. To achieve this objective, the program aims to raise the number and quality of protected couples, promote delayed marriage, promote internalization of the small family size norm, and study other development factors. 14 strategies and their objectives are outlined along with action steps.     

The welfare effects of labour force growth with internationally mobile capital

The effects of labour supply growth on the welfare of preexisting destination and non-emigrating source populations are analysed. This growth occurs in open economies where free trade in capital goods is possible. Traditional small economy arguments for population growth rely on the existence of priced though internationally immobile factors. When all factors are freely-traded and population grows naturally the case rests either on market distortions or common property within families. In an integrated world labour growth can lead to capital flight and increasing wage differentials. With international interactions, immigration increases preexisting welfare in destination countries but generally (not always) reduces it for non-emigrants in source countries. Immigration provides efficiency gains to all originally resident in source countries. Natural population growth anywhere promotes efficiency gains everywhere.     

A technique for measuring the effect of economic base on opportunity for blacks

An assessment of the occupational opportunities for selected groups of in-migrants (i.e., Negroes) requires a technique which controls for effects of both national and local employment patterns. We suggest a measure based upon the location quotient and referred to as the "differential opportunity ratio" as a method which provides the necessary controls. It is applicable in the comparative studies of cities and in analyses of other population groups for which data are available.     

The link between population density and welfare participation

This article explores a neglected topic in the social welfare, poverty, and demographic literatures—the link between population density and welfare participation in the United States. Longitudinal data from the Panel Study of Income Dynamics are used to meet two objectives: first, to test whether a relationship exists between population density and use of the food stamp program among eligible households; second, to explore the potential reasons for such a relationship. Our findings show that population density has a strong, positive impact on the likelihood of participating in the food stamp program. Low-income respondents in urban areas are significantly more likely to use food stamps in both an aggregate and a multivariate context. In analyzing the dynamic underlying such an effect, we find that those in urban areas are more likely to possess accurate eligibility information and to hold less adverse attitudes toward the use of welfare. These factors in turn increase the likelihood of food stamp participation.     

Attitudes of welfare recipients toward marriage and childbearing

The 1996 Personal Responsibility and Work Opportunities Reconciliation Act (PRWORA) put the need for attitudinal change at the center of efforts to help welfare recipients become economically independent, avoid out-of-wedlock childbearing, and embrace marriage. In this paper, we focus specifically on attitudes, analyzing both differences in values and attitudes between welfare recipients and other women on the cusp of reform, as well as the effects of TANF reforms in two states on the attitudes and behaviors of women subject to the reforms. National data reveal few differences in values and attitudes between welfare recipients and other women once background characteristics are held constant. A majority of both groups believes that prospective parents should marry, but single parents can raise a child as well as married parents. Personal aspirations for marriage and further childbearing also are fairly similar. These similarities may be one reason that the literature has shown TANF to have limited effects on marriage and childbearing. A second set of analyses investigates the degree to which welfare recipients in Delaware and Indiana report that reforms affected their aspirations for marriage and childbearing. Self-reported impacts are greater for fertility than marriage attitudes. Even among those who report their attitudes were affected by reform, recipients appear to have difficulty acting on their marital and childbearing desires, dampening any effects on behavior. These findings reinforce the current sense among researchers and policy makers that more direct reforms are needed to have a substantial effect on marriage and out-of-wedlock childbearing.     

Attitudes of welfare recipients toward marriage and childbearing

The 1996 Personal Responsibility and Work Opportunities Reconciliation Act (PRWORA) put the need for attitudinal change at the center of efforts to help welfare recipients become economically independent, avoid out-of-wedlock childbearing, and embrace marriage. In this paper, we focus specifically on attitudes, analyzing both differences in values and attitudes between welfare recipients and other women on the cusp of reform, as well as the effects of TANF reforms in two states on the attitudes and behaviors of women subject to the reforms. National data reveal few differences in values and attitudes between welfare recipients and other women once background characteristics are held constant. A majority of both groups believes that prospective parents should marry, but single parents can raise a child as well as married parents. Personal aspirations for marriage and further childbearing also are fairly similar. These similarities may be one reason that the literature has shown TANF to have limited effects on marriage and childbearing. A second set of analyses investigates the degree to which welfare recipients in Delaware and Indiana report that reforms affected their aspirations for marriage and childbearing. Self-reported impacts are greater for fertility than marriage attitudes. Even among those who report their attitudes were affected by reform, recipients appear to have difficulty acting on their marital and childbearing desires, dampening any effects on behavior. These findings reinforce the current sense among researchers and policy makers that more direct reforms are needed to have a substantial effect on marriage and out-of-wedlock childbearing.     

Welfare participation and welfare dependence among the unemployed

We regard individual unemployment duration as an important determinant of individuals welfare dependence. Welfare receipt is modelled for a unique data set of 4,655 Finnish unemployed individuals. A two-stage binomial hurdle model is applied, and estimations are made by both ML and GMM. Disregarding the full interrelation between unemployment and welfare clearly underestimates the importance of the former. Unemployment has a clear impact on both the probability of welfare participation and on welfare dependence among recipients. Using a finite mixture model we find that there is a small minority of unemployed welfare recipients who are locked-in in welfare dependence.All correspondence to Maria Melkersson. We thank participants at the ESPE 2001 conference, João Santos Silva and two anonymous referees for valuable comments. Financial support from Rektor för Åbo Akademi is gratefully acknowledged (Saarela). Responsible editor: Junsen Zhang.     

Will workfare work? Job availability for welfare recipients in rural and urban America

Ongoing concern over welfare dependency has stimulated the US Government to enact welfare reform legislation that features work requirements. Under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, millions of able-bodied welfare recipients will now be expected to find work within two years. We analyze data from the March 1994 Current Population Survey to address the neglected question of whether a sufficient number of jobs will be available for those looking for work. Using two methods to estimate job availability, and a variety of assumptions about which welfare recipients will be required to work, we estimate that as few as 18 and as many as 54 welfare recipients and other unemployed individuals would be competing for each available job. Separate analyses by residence provided equivocal evidence on whether metropolitan or nonmetropolitan welfare recipients will have the more difficult time finding gainful employment.     

Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply

This paper examines the consequences of labor immigration in an OLG economy in which agents have an elastic labor supply and differ with respect to degrees of altruism and rates of time preference. It focuses on three substantive questions. First, how do immigrants influence the bequest motive of altruistic natives? Second, what impact do immigrants have on the labor supply of natives? Finally, how does immigration affect the long-run welfare of both altruistic and non altruistic natives? Received: 25 November 1999/Accepted: 07 April 2000     

The dynamics of immigrant welfare and labor market behavior

This paper analyzes transitions into and out of social assistance, unemployment, and employment. We estimate a dynamic multinomial logit model, controlling for endogenous initial condition and unobserved heterogeneity, using a large representative Swedish panel data set. The empirical results suggest that particularly refugee immigrants display a greater degree of “structural” state dependence than natives. The high welfare participation rates among refugee immigrants may be due to the existence of a “welfare trap”, while participation among natives and non-refugee immigrants is largely due to permanent unobserved characteristics. These results suggest that welfare reforms may have differential effects on refugee immigrants and natives.

Child care subsidies and the employment of welfare recipients

Changing patterns of maternal employment, coupled with stronger work requirements for welfare recipients, are increasing the demand for child care. For many families, the cost of child care creates a financial burden; for mothers with low incomes and those who are former welfare recipients, these costs may be an insurmountable barrier to employment or economic self-sufficiency. Despite increased public spending in this area, the receipt of any child care subsidy appears to be a relatively rare and uncertain event. In this study, we use data from a sample of low-income single mothers (current and recent welfare recipients in California) to estimate the probability of their receiving child care subsidies and the effect of this probability on labor market activity.