Failing to Make Ends Meet: Dubious Financial Success Among Employed Former Welfare to Work Program Participants

To many, declining caseloads and increased labor market entry substantiate welfare reform’s success. This study examines how Louisiana welfare to work program participants who succeeded by leaving assistance and obtaining employment are making ends meet, if their needs are met and which characteristics are associated with having their needs met. Telephone survey data reveal low wages, informal labor market activity, government, community, and social support use, and notable levels of unmet needs. A multivariate analysis shows workers with higher earnings and regular nonmonetary help from family and friends are likely to have more needs met. Those likely to have fewer needs met report lower wages, more young children, use of government support programs and informal labor market activity.