Welfare reform and caseload reductions

Abstract

The US 1996 Welfare Reform Act creating the Temporary Assistance for Needy Families (TANF) and replacing the Aid to Families with Dependent Children (AFDC) and the Job Opportunities and Basic Skills Training (JOBS) is discussed and reviewed. Based on the latest data for 35 states, the regression results estimated by the weighted least squares indicate that welfare caseload reductions are mainly attributable to lower unemployment rates, lower benefits, more education, and more sanctions. The administrative expense per welfare recipient ratio is insignificant, probably because some human efforts cannot be measured or because the positive and the negative effects of administrative expense on welfare rolls cancel each other.

Citation

Hsing, Y. (2001), "Welfare reform and caseload reductions", International Journal of Social Economics, Vol. 28 No. 4, pp. 338-343. https://doi.org/10.1108/03068290110357717