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Title: Three Essays on Welfare Reform
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Mach, Traci Lynn |
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Three Essays on Welfare Reform Ph.D. Dissertation, The Ohio State University, 2000 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Aid for Families with Dependent Children (AFDC); Behavior; Benefits; Childbearing; Current Population Survey (CPS) / CPS-Fertility Supplement; Fertility; Migration Patterns; Temporary Assistance for Needy Families (TANF); Welfare In August 1996, Congress passed the Personal Responsibility Work Opportunities Reconciliation Act. This act eliminated Aid to Families with Dependent Children (AFDC), the largest source of cash assistance available to needy families, and replaced it with Temporary Assistance to Needy Families (TANF), a time-limited program with stringent work requirements. This dissertation utilizes interstate variation in pre-reform passage of waivers to examine the impact of the new system on individual behavior. The first essay investigates the impact of family cap policies on women's childbearing decisions. Such policies eliminate the increase in AFDC benefits to families who bear children while receiving benefits. Using matched data from the March Current Population Survey, I estimate the probability of observing a birth in the second year given the state's family cap status. Estimates indicate living in a state that passes a family cap provision does not affect childbearing decisions. However, living in a state that passes a family cap provision and receiving welfare benefits reduces fertility among the welfare population by 19.5 percent. The second essay readdresses the welfare magnet hypothesis in the context of a time-limited welfare system. According to the original hypothesis, individuals migrate to states with more generous benefit structures. Under TANF, there are more interstate differences than previously, including differential time limits. Using data from the National Longitudinal Survey of Youth (NLSY79), I model migration as a function of the current location's relative characteristics. Estimates show that while being subject to a time limit is positively associated with cross-county migration, this impact becomes smaller as the distance to avoid being subject to a time limit increases. The final essay examines AFDC participation and exit decisions. I identify different reform policies separately and allow them to have different impacts on current and potential recipients. Making use of the extended panel provided by the NLSY79, I estimate a monthly competing risks hazard model of eligibility and participation. Results show that while recipients are responsive to some provisions, the provisions retard rather than hasten exit. However, potential recipients are deterred from taking up benefits by the presence of time limits. |
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Bibliography Citation
Mach, Traci Lynn. Three Essays on Welfare Reform. Ph.D. Dissertation, The Ohio State University, 2000. |