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Civic Report
No. 35 March 2003


Gaining Ground, Moving Up: The Change in the Economic Status of Single Mothers Under Welfare Reform

ABOUT THE AUTHORS

Note Regarding M. Anne Hill

Anne Hill died at the age of 48 on September 16, 2002, prior to the completion of this study. As a scholar and a friend, she is dearly missed by me, as well as by all who knew her. This study is dedicated to her memory.  —June O’Neill

June O’Neill is Wollman Professor of Economics at the Zicklin School of Business and Director of the Center for the Study of Business and Government, School of Public Affairs, at Baruch College, CUNY. She is also an Adjunct Scholar of the American Enterprise Institute in Washington, D.C. Between 1995 and 1999, Dr. O’Neill was on leave from Baruch College serving as Director of the Congressional Budget Office (CBO) in Washington. Earlier she held positions as Director of Policy and Research at the U.S. Commission on Civil Rights, senior economist on the President’s Council of Economic Advisors, senior research associate at the Urban Institute, and research associate at the Brookings Institution.

Dr. O’Neill received a Ph.D. in economics from Columbia University. She was elected Vice President of the American Economics Association in 1998. Her published research covers several areas including wage differentials by race and gender, health insurance, tax and budget policy, and social security. Her prior publications on welfare issues include Gaining Ground: Measuring the Impact of Welfare Reform on Welfare and Work; Work and Welfare in Massachusetts: An Evaluation of the ET Program; Lessons for Welfare Reform: An Analysis of the AFDC Caseload and Past Welfare-to-Work Programs (with Dave M. O’Neill); and The Duration of Welfare Spells (with Laurie Bassi and Douglas Wolf).

Dr. Hill was Professor of Economics and Chair of the Economics Department at Queens College and Senior Research Associate at the Center for the Study of Business and Government of Baruch College, CUNY. She received a Ph.D. in economics from Duke University and has written on determinants of underclass behavior, social welfare policy, the education of girls and women in the developing world, the economics of disability and the Japanese labor market. With Thomas J. Main, she wrote Is Welfare Working? The Massachusetts Reforms Three Years Later (The Pioneer Institute, 1998), as well as being the co-author, with Dr. O’Neill, of Gaining Ground: Measuring the Impact of Welfare Reform on Welfare and Work. Her work has been published in the American Economic Review, The Review of Economics and Statistics, and the Journal of Human Resources (among other journals).

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ACKNOWLEDGEMENTS

The author would like to thank Mei Liao and Wenhui Li for their expert assistance with the extensive data analysis and other aspects of the research, and Eva Mattina for her help throughout the process of producing this report.

 


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WHAT THE PRESS SAID:

Reforming Welfare The Daily Oklahoman, 4-14-03
Mike: I'll Sue 'Em New York Post, 4-14-03
Welfare Reform Works by June O’Neill, New York Post, 4-14-03
Moving up by Linda Chavez, Townhall.com, 4-9-03
Equal Time: To help single mothers, strengthen welfare reform by June O'Neill, Atlanta Journal-Constitution, 4-1-03

SUMMARY:
This report examines how the economic circumstances of single mothers changed after welfare reform. The primary author, Dr. June O’Neill, found that the poverty rate for single mothers dropped by roughly 20% following reform, reaching an all-time low in 2000. The proportion of single mothers who were employed also surged during this period, as did their income. Single mothers’ own-cash income rose 21% overall, and rose by similar margins even in the most disadvantaged demographic groups. The report also found that single mothers’ earnings rise significantly over time as long as they remain in the workforce.

TABLE OF CONTENTS:

Executive Summary

About the Authors

Acknowledgements

Index of Figures and Tables

Introduction

I. POVERTY

Differences Between Welfare Recipients and Non-Recipients

Education, Race and Marital Status

Did Poverty Decline for Welfare Leavers?

II. WORK PARTICIPATION

Accounting for the Increase in Employment

III. EARNINGS, WAGE RATES AND OTHER ASPECTS OF EMPLOYMENT

Hourly Wages of Single Mothers

Occupations and Sector of Employment

The Employment and Earnings of Welfare Leavers: Findings from Panel Data

Will the Wage Rates of Welfare Leavers Rise with Experience?

IV. CHANGES IN TOTAL INCOME AND ITS COMPONENTS

Changes in Household Cash and Non-Cash Income in the SIPP Panel

V. CONCLUDING COMMENTS

Endnotes

Appendix Tables

 


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