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Welfare Reform Project

ARIZONA

Arizona Cash Assistance Exit Study

Date of Report:

January 2000 (www.de.state.az.us/links/reports/exitstudy.html )

Methodology:

Survey and administrative data: 821 families were surveyed out of a statewide random sample of 1,140 cases. (72% Response Rate ).

Study Timeframe:

Cases closed from January 1998 to March 1998. Surveys took place 12 to 18 months after exit.

Investigator (Contact):

Arizona Department of Economic Security, Office of Evaluation (Karen Westra)

Study Objective:

To determine the consequences, both intended and unintended, for recipients and their dependents when cash assistance is severed, with a focus on sanctions.

Comparable State Findings:

Former Recipients

Percent employed at time of interview (survey)

57%

Hourly wage of those employed

$7.47

Percent receiving Food Stamps/Medicaid (3rd quarter after exit)

44% / 48%

Percent who say life is "better" after welfare

68%

Percent receiving cash assistance within one year of exit

35%

Employment & Income

  • Average earnings for adults working were $2,142 in the first quarter after leaving welfare. They increased somewhat to $2,463 by the 4th quarter after leaving (an increase of 15% in 9 months). In the survey (12 to 18 months after exit), former recipients reported average family income from all sources of $1,439 per month--made up primarily of their take-home pay (42% of the income) and that from other household members, including spouses, partners and others (37% of the income).
  • Sanctioned families experienced significantly worse outcomes than families who left for other reasons. Sanctioned families worked less often (42% v. 52% in the fourth quarter after exit) and those that worked had lower wages and earnings ($2,052 v. $2,548 in the fourth quarter after exit).
  • Employment rates did not change significantly in the first year after exit.
  • Unemployed leavers reported that health issues (23%) and lack of child care (22%) were the most common barriers to employment.

Other supports

  • Almost half the families with children under five (47%) and most with children from 6 to 12 (65%) did not use any child care arrangements, including care by relatives or friends. 14% of the families with children received a child care subsidy in the 3rd quarter after exit.
  • 13% of the families received child support, an average of $269 a month.
  • 18% of leaver families lived in subsidized housing.
  • According to survey data, 26% of children were uninsured while 20% had private insurance.

Family well-being

  • Families reported fewer difficulties after leaving welfare compared to the time they were on welfare. Fewer families reported not having enough to eat at times (30% on welfare v. 24% after), having utilities turned off because they were able to pay (18% v. 12%), being forced into a homeless shelter (4% v. 3%), or getting behind in housing costs (41% v. 37%). However, families also reported a sharp increase in being unable to obtain needed medical attention (from 14% to 24%).
  • Sanctioned families did not report substantially greater hardships. They had utilities turned off more frequently (16% compared to 11% of non-sanctioned families), but had fewer problems getting needed medical attention (their Medicaid enrollment was 73% compared to 54% for other leavers). 23% reported being worse off compared to 13% for other leavers.

Denver Office: Tel: 303-364-7700 | Fax: 303-364-7800 | 7700 East First Place | Denver, CO 80230 | Map
Washington Office: Tel: 202-624-5400 | Fax: 202-737-1069 | 444 North Capitol Street, N.W., Suite 515 | Washington, D.C. 20001