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From Welfare To Poverty
Randy Albelda and Heather Boushey
August 23, 2006
Randy Albelda is a professor of economics at the University of Massachusetts Boston. Heather Boushey is a senior economist at the Center for Economic and Policy Research.
This week marks the 10th anniversary of the Personal Responsibility and Work Opportunity Reconciliation Act—commonly known as "welfare reform." The much hailed legislation abolished a cornerstone of the New Deal known as the Aid to Families with Dependent Children program which was criticized for discouraging work. But 10 years later, we know that the program Congress put in its place—Temporary Assistance to Needy Families— encouraged work, but many remain in poverty and struggle to make ends meet.
Since welfare reform was passed, poor women have moved into jobs in record numbers. In 1996, more than half (54 percent) of low-income mothers with children under 6 years old were in the labor force. By 2002, that share jumped to over two-thirds (67 percent).
But, the workplace has not adapted to the needs of the millions of new working single mothers. Studies of people leaving welfare consistently find that the wages of those leaving welfare average between $7 and $8 per hour , which are above the minimum wage but leave families close to or even below the poverty threshold. Further, most people found jobs that do not offer the kinds of benefits middle- and upper-class workers take for granted. Only about half of those leaving welfare report having employer-sponsored health insurance and no more than half had paid sick leave or pension coverage. Most do not have access to paid maternity/paternity or family leave and many do not even have access to unpaid leave.
In short, welfare reform was effective in getting more mothers to work, but not at making jobs work for low-wage mothers.
LINK
Randy Albelda and Heather Boushey
August 23, 2006
Randy Albelda is a professor of economics at the University of Massachusetts Boston. Heather Boushey is a senior economist at the Center for Economic and Policy Research.
This week marks the 10th anniversary of the Personal Responsibility and Work Opportunity Reconciliation Act—commonly known as "welfare reform." The much hailed legislation abolished a cornerstone of the New Deal known as the Aid to Families with Dependent Children program which was criticized for discouraging work. But 10 years later, we know that the program Congress put in its place—Temporary Assistance to Needy Families— encouraged work, but many remain in poverty and struggle to make ends meet.
Since welfare reform was passed, poor women have moved into jobs in record numbers. In 1996, more than half (54 percent) of low-income mothers with children under 6 years old were in the labor force. By 2002, that share jumped to over two-thirds (67 percent).
But, the workplace has not adapted to the needs of the millions of new working single mothers. Studies of people leaving welfare consistently find that the wages of those leaving welfare average between $7 and $8 per hour , which are above the minimum wage but leave families close to or even below the poverty threshold. Further, most people found jobs that do not offer the kinds of benefits middle- and upper-class workers take for granted. Only about half of those leaving welfare report having employer-sponsored health insurance and no more than half had paid sick leave or pension coverage. Most do not have access to paid maternity/paternity or family leave and many do not even have access to unpaid leave.
In short, welfare reform was effective in getting more mothers to work, but not at making jobs work for low-wage mothers.
LINK