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Welfare Reform and Children's Living Arrangements

Marianne P. Bitler, Jonah B. Gelbach, Hilary W. Hoynes
2006 The Journal of human resources  
Relatively little is known about the impact of welfare reform on children's living arrangements, which was an important focus of reformers. We use data from the March CPS to examine this question. Our findings suggest three main conclusions. First, welfare reform in some cases has had large effects on parental co-residence among children. Second, those effects are neither entirely aligned with the stated goals of reform nor entirely in spite of these goals. Third, there is a great deal of
more » ... great deal of treatment effect heterogeneity both with respect to racial and ethnic groups and with respect to whether reforms were waivers or TANF. All states implemented TANF, and the variation in implementation occurred over a short time period. This short implementation limits the generality of conclusions regarding TANF estimates when year effects are left unrestricted. However, when we parameterize underlying trends as a cubic, our estimates are qualitatively similar. Waiver implementation occurred over a much longer time period, so identification of waiver effects does not depend on trend parameterization.
doi:10.3368/jhr.xli.1.1 fatcat:erobtbla2zh77n57w6zu2ps3sa