Are We Helping the Poor? An inquiry into the Effects of "welfare-to-work" Programs on TANF Recipients

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2009
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Haverford College. Department of Economics
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eng
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Open Access
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Abstract
This paper evaluates the effects of “welfare-to-work” programs. Of interest are the stringency of work related activity requirements, whether or not work related activity requirements are on a case by case basis, and whether or not mandatory job search assistance programs exist. The outcomes on which I evaluate the effects of these policies are income, proportion of individuals who are not working, and proportion of individuals who are working full time. The effect of mandatory job search assistance programs is negligible and negative in all cases. I find a dual effect of stringency of work related activity requirements and work related activity requirements on a case by case basis, leading to increased levels of income and full time employment but decreased levels of employment overall. This suggests a cyclical effect whereby TANF recipients are forced into full time labor but soon exit the labor force. I hypothesize that this is due to job mismatch, as TANF recipients do not have time to find a job that is a good match for them.
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