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Welfare Reform Project

• Employment rates changed little over time, ranging from 54% to 51% in the 1^st through 8^th quarters after exit (using administrative data and not excluding families who return to welfare).
• Earnings for all employed leavers increased from $2,248 in the 1^st quarter after exit to $2,668 in the 5^th (a 19% increase) and to $3,149 in the 8^th (an overall increase of 40%).
• Most leavers did not maintain stable employment. Looking at two years of employment after exit, 21% worked in all eight quarters, 30% in 5-7 quarters, 27% in 1-4 quarters and 23% in no quarters.
• Families who did not maintain stable employment were more likely return to welfare-41% for those with 1 or 2 quarters of employment return in a year compared to 8% of those employed more than 2 quarters.
• 19% of those without employment in any quarter returned to cash assistance.
• 72% of those employed worked more than 35 hours per week.
• Former recipients were most commonly employed in the services (46%) and retail trade (30%) sectors -- the lowest wage sectors. Further, former recipients earn lower than average wages within each sector of employment.
• Based on earnings alone, approximately 20% of leavers had earnings that exceeded the poverty level one year after exit.
• 31% of leavers reported that a lack of job skills hindered their ability to secure/maintain employment. Similarly, 31% reported a lack of education or training as a barrier to securing/ maintaining a job.
• 85% of survey respondents reported one or more barriers to employment. Barriers included: mental health (47%), domestic violence (25%), substance abuse (5%), housing instability (44%), transportation problems (40%), and child care (41%). Those without any barriers are employed at a much higher rate (73%), than those with one barrier (56%) or those with four or more barriers (38%).

• 51% of employed leavers claimed the Earned Income Tax Credit and 42% received the state Earned Income Credit.
• 33% of eligible families utilize child care subsidies.

• About one-half of employed recipients had the option to obtain health insurance from their employers and about half took advantage, 13% of adults were uninsured.