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Welfare Reform Project

ARKANSAS

Evaluation of Arkansas' Transitional Employment Program Sixth Bi-Annual Report

Date of Report:

August 2000 (web address not available)

Methodology:

Administrative data

Study Timeframe:

Examines families who left welfare between October 1996 (pre-welfare reform) to October 1999 and includes employment data to December 1999 and program data to June 2000.

Investigator (Contact):

Berkeley Policy Associates (Rebecca London 510-465-7884)

Study Objective:

Comprehensive evaluation of welfare program, including analysis of families leaving welfare.

Comparable State Findings:

Former Recipients

Percent employed in 1st quarter after exit (1999)

58%

Mean/Median hourly wage of those employed

N/A

Percent of children receiving Food Stamps/Medicaid 12 months after exit

58% / 55%

Percent who say life is "better" after welfare

N/A

Percent returning to cash assistance in first year after exit

22%

Employment & Income

  • Employed leavers earned an average of $2,191 in the first quarter after exit.
  • 45% of employed leavers found work in the service industry, compared to 30% in the retail trade and 17% in manufacturing. Manufacturing jobs paid much more, with earnings of $3,447 in the first quarter after exit compared to $1,963 in services and $1,640 in retail.
  • Earnings for leavers continuously employed went up 24.5% between the first and fourth quarters after exit. They rose an additional 9% in the following year, but only 18% of all leavers stayed employed for 8 consecutive quarters after leaving welfare.
  • An analysis of employment rates over time shows that implementation of welfare reform increased rates by from 1.7% to 4.6% and that the effect has increased over time.

Other Supports

  • Adult enrollment rates for Medicaid in the 1st quarter after exit went up sharply from around 30% as welfare reform was implemented in July 1997 to over 65% by July 1999. Increases reflect de-linking of Medicaid and an administrative focus on increasing enrollment.
  • Analysis of the families returning to welfare shows several factors strongly related to the chance that families will return to welfare after exiting: having children under 6, sporadic employment after exit, long-term receipt of benefits, area of residence (the largest city and the two rural regions in the southern part of the state), African American, and younger adults.

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