Working Paper: NBER ID: w12480
Authors: Ellen Meara; Richard G. Frank
Abstract: The Personal Responsibility and Work Opportunity Reconciliation Act imposed work requirements on welfare recipients. Using 1999-2001 data from Boston, Chicago, and San Antonio, we compared the labor market and welfare experience of women with four employment barriers: poor mental health, moderate to heavy drug and alcohol use, a child with a behavior problem, and a child under the age of 3. Women with poor mental health and drug and alcohol users were much less likely to move into work than other groups, and more likely to be sanctioned for noncompliance with welfare requirements in 2000-2001 as federal work participation requirements increased
Keywords: Welfare Reform; Employment Barriers; Mental Health; Substance Use; TANF
JEL Codes: I3; J08
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Poor mental health (I12) | lower likelihood of transitioning into work (J29) |
| Moderate to heavy drug and alcohol use (I12) | lower likelihood of transitioning into work (J29) |
| Poor mental health (I12) | greater TANF use (H53) |
| Moderate to heavy drug and alcohol use (I12) | greater TANF use (H53) |
| Barriers (mental health, substance use) (I12) | higher likelihood of remaining detached from work and income assistance (J65) |
| Mental health problems (I12) | more likely to be sanctioned for noncompliance with welfare requirements (I38) |
| Substance use disorders (I12) | more likely to be sanctioned for noncompliance with welfare requirements (I38) |
| Children under age three (J13) | no significant difference in TANF use compared to barrier-free women (J79) |
| Children exhibiting behavioral problems (C92) | no significant difference in TANF use compared to barrier-free women (J79) |