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Welfare Reform Project

SOUTH CAROLINA

Welfare Leavers and Diverters Research Study

Date of Report:

March 2001 (web address not available)

Methodology:

Administrative and survey data: 1,072 interviews conducted (Response Rate 74%)

Study Timeframe:

Interviews were conducted between Oct. 1998 and March 1999, approximately one year after exit, with those who left welfare due to earnings, time limits, sanctions, or other reasons.

Investigator (Contact):

Maximus, Inc. (Philip Richardson)

Study Objective:

Comparison of the economic status and well-being of welfare leavers who left for increased earnings and those who left due to time limits or sanctions.

Characteristic of Time-limited and Sanctioned Recipients in South Carolina

  • In general, families who left welfare due to sanctions were less educated and younger than other leavers. 54% of sanctioned respondents and 48% of time-limited respondents had not completed high school compared to 29% of those who left due to earnings.
  • Those who left welfare due to time limits or sanctions were more likely to have lower levels of education than other leavers.
  • Although time-limited and sanctioned leavers have lower employment rates and earnings, they do not appear to be experiencing more hardships or worse child-outcomes than other leavers.
  • The majority of time-limited and sanctioned respondents in South Carolina reported feeling that life was better after leaving welfare (70% and 76%).

Employment & Income

  • 74% of leavers who exited due to earnings were employed at the time of interview, compared to 41% of sanctioned families, and 50% of time-limited leavers.
  • According to administrative data, 39% of those who exited for "other" reasons and 37% of those who exited due to sanctions reported they left welfare for a job in the survey.
  • Median monthly earnings for all leavers were $1,020. Earnings vary depending on reason for exit - earned income ($1,083), "other" ($1,035), sanctions ($984), and time limits ($953).
  • 58% of time-limited leavers were earning less than $6.00/hr compared to 37% of those who left due to earnings.
  • The most common occupations for time-limited respondents were housekeepers, kitchen helpers, or restaurant workers.

Barriers to Employment

  • Unemployed leavers cite physical or mental illness/injury (24%), lack of child care (15%), lack of transportation (13%), and inability to find a job (13%) as the most common reasons for not working.
  • Unemployed time-limited and sanctioned respondents were more likely to cite problems in finding a job than other leavers.

Other Supports (at time of interview)

  • 55% of time-limited respondents and 48% of sanctioned respondents reported living with an employed adult.
  • 17% of time-limited respondents and 16% of sanctioned respondents reported no monthly income.
  • According to survey data, those who exited due to time limits were more likely to receive Food Stamps (87% v. 58%), Medicaid (93% v. 82%), child support (34% v. 28%), rent subsidies/public housing (35% v. 24%), and financial help from family/friends (18% v. 12%) compared to all leavers.
  • 19% of time-limited respondents and 22% of sanctioned respondents owned a vehicle.

Family Well-Being

  • 22% of those who left welfare for "other" reasons, 21% of sanctioned respondents, 20% of those who left due to earnings, and 15% of time-limited respondents reported skipping meals due to a lack of food.
  • 46% of time-limited respondents said they felt more stress than they had while on welfare.
  • 11% of sanctioned respondents had returned to welfare at the time of survey.

Policy Suggestions

  • The department may wish to conduct more in-depth interviews with clients that have been sanctioned or are nearing the time limit to detect possible barriers not identified during the initial screening.

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