Maryland Life After Welfare

MARYLAND

Life After Welfare: Fifth Report
Date of Report:	October 2000 (web address not available)
Methodology:	Administrative Data: 7,738 cases that left welfare between 1996 and 2000 (5% of cases per month for 42 months).
Study Timeframe:	October 1996 - March 2000
Investigator (Contact):	School of Social Work University of Maryland-Baltimore (Dr. Born 410-706-5134 cborn@ssw.umaryland.edu)
Study Objective:	Examine the lives of leavers who left for various reason (work, sanctions, etc.).

Comparable State Findings:	Former Recipients
Percent employed (UI-covered employment) in the 4^th quarter after exit	50%
Mean/Median hourly wage of those employed	N/A
Percent receiving Food Stamps/Medicaid (for children) 7 - 12 months after exit	59% / 53%
Percent who say life is "better" after welfare	N/A
Percent receiving cash assistance in first year since exit	25%

Employment & Income

The median quarterly earnings for employed leavers in the 4^th quarter after exit was $2,337 (excluding child-only cases).
Over time, leavers appear to maintain employment. Of those who worked in the 1^st quarter after exit, 72% continued to be employed in the 4^th quarter after exit. Similarly, 58% of those employed in the 1^st quarter after exit worked in all four post-exit quarters.
Median earnings also showed a positive increase from $2,028 in the1^st quarter after exit to $3,220 in the 12^th quarter after exit (excluding child-only cases).
Leavers who exited the system more recently (October 1999 - March 2000) gained employment at a lower rate than those who left the system in the first year of reform (October 1996 - September 1997) (44% compared to 52% at quarter of exit). Similarly, median earnings in the quarter of exit were higher for leavers who exited the system three years ago ($2,076) than for leavers who exited last year ($1,614).
The most common industries that employ leavers were wholesale and retail trade (eating and drinking places, department stores and supermarkets), personal/business services (employment services, hotels/motels and security system services), and organizational services (nursing homes/hospitals, social services and sole proprietors).

Other Supports

33% of all leavers returned to cash assistance within 3 months and 40% returned within 36 months. Excluding "churners" (those who returned to cash assistance within 30-days or less of exit) 15% returned to cash assistance within 3 months while 36% returned within 36 months.
Similar to employment trends, recidivism rates increased with recipients that entered the system in year three of welfare reform compared to those who entered in year one. 24% of leavers returned 12-months after exit compared to 41% of leavers in year two and 54% of leavers in year three.
Leavers who exited the system due to increased income/work or because they requested case closure returned to cash assistance at a lower rate than those that exited for other reasons.

Family Well-Being

Although approximately half of all children had medical coverage, the greatest percentage of children were covered were under the age of two (46% to 63% over a three year period).