Civic Report No. 35 March 2003 Gaining Ground, Moving Up: The Change in the Economic Status of Single Mothers Under Welfare Reform Figures and Tables Figure 1: Changes in the Poverty Rates of Female-Headed and Married-Couple Families with Children under 18: 1959–2001 ("official" poverty definition) Figure 2: Changes in the Poverty Rate of Single Mother Families Under Five Alternative Definitions of Income Figure 3: Poverty Rates of Single Mother Families by Welfare Status and Definition of Income Figure 4: Poverty Rates of Single Mother Families by Education (based on cash income) Figure 5: Poverty Rates of Single Mother Families by Race (based on cash income) Figure 6: Poverty Rates of Single Mother Families by Marital Status (based on cash income) Table 1: Tracking the Poverty Status of Cohorts of Welfare Leavers (Under Three Definitions of Poverty) Using SIPP Panel Data in the Months Before and After Leaving Welfare, 1996–1999 Figure 7: Work Participation Rates of Single Mothers by Proportion of Year Worked Figure 8: Work Participation Rates of Single Mothers by Welfare Status and Intensity of Work Figure 9: Percent of Single Mothers Employed Last Week by Number of Children, Education and Race Table 2: The Contribution of Welfare Reform, Changes in Unemployment, and the EITC to the Increase in Work Participation of Single Mothers Table 3: Hours Worked During the Year and Annual Earnings of Single Mothers by Welfare Status, 1988/89, 1995/96 and 1999/2000 Table 4: Mean Hourly Wage in 2001 and the Hourly Wage at Different Percentiles in the Wage Distribution: Single and Married Mothers by Education Table 5: Percent of Employed Single Mothers and Married Mothers in 2001 with an Hourly Wage At or Below the Minimum Wage ($5.15) and Up To 35 Cents Above the Minimum: Mothers Ages 18–44, by Education Table 6: Tracking the Work Participation and Earnings of Women with Children Who Left Welfare, Using SIPP Panel Data in the Months Before and After Leaving Welfare, 1996–1999 Table 7: Changes in the Receipt, Amount, and Share of Annual Own Cash Income and Its Components: Single Mothers, Ages 18–44 (income in 2001 dollars) Table 8: Changes in the Receipt, Amount, and Share of Own Cash Income and Its Components: High School Dropouts (single mothers, income in 2001 dollars) Table 9: Full Household Income and Its Major Components: All Single Mothers, 18–44 (income in 2001 Dollars) Table 10: Full Household Income and Its Major Components: High School Dropouts (single mothers, income in 2001 dollars) Table 11: Own Cash Income and Its Major Components by Income Quintile for Single Mothers, 18–44 (income in 2001 dollars) Table 12: The Mean Ratio of HOUSEHOLD Post-Tax Cash and Non-Cash Income to the Poverty Threshold in Single Mother Households for Different Subgroups of Mothers Table 13: Tracking Monthly Household Cash and Non-Cash Income (in 2001 dollars) and Income/Poverty Ratios of Cohorts of Welfare Leavers, Using SIPP Panel Data in the Months Before and After Leaving Welfare, 1996-1999 Table 14: Tracking the Health Insurance Status of Cohorts of Welfare Leavers Using SIPP Panel Data in the Months Before and After Leaving Welfare, 1996–1999 Appendix Table A: Effects of Welfare Policy and Other Factors on the Work Participation of Single Mothers, 1984–2001 Appendix: Table B-1: Mean Characteristics in 1998 for Mothers in the NLSY79 Formerly on Welfare (all mothers and separately for early and recent welfare leavers) Appendix Table B-2: Results of Wage Regressions: Log Hourly Wage in 1998, for Mothers in the NLSY79 Formerly on Welfare (all mothers and separately for early and recent welfare leavers) Appendix Table C-1: Distribution of Single Mothers (Ages 18-44) by Living Arrangement Appendix Table C-2: Characteristics and Income Source of Single Mothers with Zero Cash Income of Their Own in the Prior Year Appendix Table C-3: Characteristics of Single Mothers, Ages 18–44, Total & By Quintile Appendix Table D-1: Mean Characteristics of Employed Women, Ages 33–41, in 1998, NLSY79 Cohort (all women and women by lifetime welfare participation) Appendix Table D-2: Explaining the Wage Differential Between Women Ever on Welfare and Never on Welfare; Results of Wage Regressions: Log Hourly Wage in 1998 of Women, Ages 33–41, NLSY79 Appendix Table E: Occupational Distribution and Class of Worker of Employed Single and Married Mothers by Education, 2001

EMAIL THIS | PRINTER FRIENDLY CR 35 PDF (370 kb) 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