The sweeping welfare reform legislation enacted in 1996 and the associated state waivers that preceded it are landmarks in social policy. In my opinion they have begun to bring positive solutions to problems that not too long ago had seemed intractable. The dramatic decline in the welfare caseload since 1994 is well known. Although researchers may disagree on the precise contribution of welfare reform to the decline, there is little doubt that it is responsible for much of the change. To preview my conclusions, I find reason for optimism, even at this early stage.
Single mothers are the group most closely identified with welfare.
Their employment gains are stronger than could be expected based on the performance of the economy alone. Many critics had doubted that single mothers would be able to adapt to the stringent work demands of the reform because of skill deficiencies in addition to child care burdens. Yet despite these handicaps single mothers have significantly changed their lifestyles as a substantial proportion has shifted from welfare to work. It is useful to recall that the reason why welfare reform became an urgent policy concern in the first place was the growing realization that the old AFDC program was itself inducing long-term welfare dependency with detrimental consequences for vulnerable women and their children. Those consequences included the blunting of normal incentives for self-betterment and marriage.