The findings are reported in three new briefs from the Urban Institute's Assessing the New Federalism project, and are based on data from the National Survey of America's Families. Both groups of welfare leavers had similar levels of employment, wages, hours, earnings, and receipt of government benefits. But the more recent leavers reported more health problems and higher levels of material hardship than the earlier group, despite the strong economy. Most welfare leavers were not receiving food stamps in 1999, despite continuing eligibility, mimicking an earlier trend among welfare leavers. As time limits loom and work support policies evolve, states will face tough policy decisions.
Many recent leavers return to welfare, have high poverty rates, and struggle economically.
More recent leavers appear to be faring better in terms of their estimated poverty rate, which in an average month declined significantly, from 48 percent in 1997 to 41 percent in 1999. More families in the recent group of leavers, however, reported economic struggles. Forty-six percent of leavers in 1999 reported inability to pay housing bills, compared to 39 percent in 1997. The share of single mothers on welfare who reported living with partners increased between 1997 and 1999, as did the share who were African American. There was no change in the share of welfare recipients reporting no parent present.