Iowa Families That Left TANF: Why Did They Leave and How are They Faring?

IOWA

Iowa Families That Left TANF: Why Did They Leave and How are They Faring?
Date of Report:	February 2001 (http://www.mathematica-mpr.com/PDFs/iowaleave.pdf)
Methodology:	Survey and Administrative Data: 401 telephone interviews were conducted out of a sample of 535 families. These families were randomly selected from the 958 single-parent family cases that were evaluated for administrative data. (76% Response Rate)
Study Timeframe:	Interviews were conducted 8 - 12 months after exit (Spring 1999), recipients were off welfare for two months.
Investigator (Contact):	Mathematica Policy Research, Inc. (Jacqueline Kauff, Project Director 609-799-3535)
Study Objective:	Explain why families leave cash assistance and describe the circumstances and well-being of families 8 - 12 months after exit.

Comparable State Findings:	Former Recipients
Percent employed one month prior to interview	61%
Mean hourly wage of those employed	$7.54
Percent receiving Food Stamps/Medicaid (for children) at time of interview	43% / 76%
Percent who say life is "better" after welfare	49%
Percent receiving cash assistance in first year since exit	28%

Employment & Income

Employed leavers' average monthly earnings one year after leaving cash assistance were $1,055.
56% of employed leavers were at their primary job for six months or less.
66% of leavers were employed at some time after exit-only 23% were employed in all 4 quarters.
20% of leavers had been promoted at their primary job and 49% had received a raise.
Leavers who were employed consistently had average earnings well over twice those who were only employed for some time ($3,240 compared to $1,493 in April - June 2000).
37% lived with another person that had an earned income.
On average, leavers who were not working at the time of interview had not worked for one and a half years. Those who were unemployed reported physical or mental health problems (23%), inability to find a job (16%), and child care problems (13%) as their greatest barriers to employment.

Other Supports

More than 80% of leavers participated in at least one government assistance program.
17% of families received child care subsidies - $51/month average. Common providers were grandparents (36%), non-relatives (27%), other relative (17%) and day care centers (13%).
Medicaid and Food Stamp participation rates dropped nearly 50% (from 99% and 85% to 57% and 43%) in the first month after exit and remained stable throughout the next year.
Only 11% of families that were due child support received it consistently over 12 months. The average child support payment was $280/month.
66% of employed leavers received an earned income tax credit.

Family Well-Being

47% of leavers had an income below the 1999 poverty threshold.
85% of leavers depended on family/friends for support. Common supports were child care (57%), transportation (47%), and phone access (40%).
60% of leavers went without health care, 35% went without phone service, 32% were food insecure, 25% were unable to cover their rent/mortgage and 7% were homeless at some time since exit.
Those who exited cash assistance voluntarily were no more likely to be employed, return to welfare, or need help from family/friends. However, those who left voluntarily tend to have more income.