Families Who Left Welfare: Who Are They and How Are They Doing?

by Pamela Loprest, The Urban Institute

On the third anniversary of Congress’ passage of welfare reform, the rolls have fallen dramatically. But how are these former recipients and their families doing? The first national picture of what happened to welfare leavers during the early stages of welfare reform shows that many are working and working full-time. In 1997, 61 percent worked themselves and 75 percent were in families with at least one working adult. Sixty-nine percent of employed former recipients worked more than 35 hours per week. However, their average wage was only $6.61 per hour. Twenty-eight percent worked mostly night shifts and only 23 percent of welfare leavers had health insurance from their employer.

Fewer welfare leavers are participating in Medicaid and food stamps than might be expected. In 1997, only 31 percent of leavers surveyed reported receiving food stamps. Thirty-four percent reported Medicaid coverage for an adult and 47 percent for a child. While some leavers may not be eligible for or may not need government benefits, others may not know they continue to be eligible or have difficulties accessing these benefits.

When compared with the much larger group of working poor families with children who have not received welfare, former recipients look very similar. Former recipients work at about the same rate as low-income mothers, at the same type of jobs and at the same wage rates. Median monthly earnings of former recipient and non-welfare low-income families are also similar. It appears that former recipients are fitting into the labor market in the same way as low-income mothers who have not received welfare.

Many former welfare recipients still face economic hardships. One-third of leavers report having to cut meal size or skip meals and nearly 40 percent report problems paying rent, mortgage, or utility bills. Even though former recipients have similar earnings to their peers who never received cash assistance, they report more struggles making ends meet.

For a copy of the report, visit the Urban Institute’s website, www.urban.org, or call Bonnie Nowak at 202-261-5850.

Families Leaving TANF Face Many Obstacles

Hardship	Former TANF Recipients %	Near-Poor Mothers %	Low-Income Mothers %
Had to cut size of, or skip, meals because there wasn’t enough food.	33.4	24.7	22.7
Sometimes or often worried that food would run out.	56.9	46.4	43.5
Sometimes or often food didn’t last.	49.4	38.4	35.6
Not able to pay mortgage, rent or utility bills.	38.7	28.9	27.6
Moved in with others because couldn’t pay mortgage, rent or utility bills.	7.1	2.1	1.9

Note: Near-poor mothers are identified as those below 150 percent of the poverty line. Low-income mothers are identified as those below 200 percent of the poverty line. Former welfare recipients exclude both previous groups.

Source: Urban Insitute, 1999