In a continuing effort to increase collections, the 1996 welfare reform law requires state child support enforcement agencies to create centralized automated disbursement systems. States are also required to collect information on all new hires to better track those who avoid wage withholding through frequent job changes. It is unclear whether or not states will enforce support awards against the parents of non-paying teenage fathers. Mothers on welfare tend to have more children than those who are not. The concern driving the provisions listed above is that too many babies are born while the mother is still on welfare.
Bonuses go to the states that most lower the illegitimacy ratio without having a rise in abortions.
Mothers who have their first baby as unwed teens are likely to go on welfare and form the core of long-term recipients. In addition, the law allows states to require non-custodial teen parents under age 18 to participate in work activities. We earlier reviewed the reasons for the growth in the welfare caseload. Now we turn to the reasons for its 34 percent decline since 1994. There are four main forces associated with the decline in welfare caseloads.