Welfare reform has transformed the U.S. cash assistance program for single parents and
their children. Although there remains substantial uncertainty about the importance of reform
in producing the subsequent decline in the welfare caseload, even less is known about its
impact on the experiences and well being of former welfare recipients. The analysis here
focuses on the characteristics and employment of welfare recipients in the state of Missouri
over the period 1990-1999. We find that there has been little change in the observable
characteristics of those entering, on, or leaving welfare, but there has been a dramatic growth
in the importance of employment for all these groups. We also examine the dynamics of
employment and welfare recidivism comparing cohorts of leavers prior to and after welfare
reform. We find that after welfare reform leavers are much more likely to be working, have
higher total earnings, work for employers with similar characteristics, and are less likely to
return to welfare. These results suggest that welfare reform has not materially harmed
welfare recipients.
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