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Welfare Reform Project

NEW MEXICO

New Mexico TANF Longitudinal Study - Fourth Combined Report of Administrative and Survey Data

Date of Report:

September 2001 (web address not available)

Methodology:

Administrative and survey data (2 rounds) (Response Rate: unknown)

Study Timeframe:

Follow-up to March 2001 report. This report primarily focuses on administrative data for 33,000 families who were on TANF between July 1998 and June 1999.

Investigator (Contact):

Maximus (Phillip Richardson)

Study Objective:

Assess poverty status/financial stability of single-parent families who left TANF.

Comparable State Findings:

Former Recipients

Percent employed first quarter after exit

N/A

Mean/Median hourly wage of those employed

N/A

Percent receiving Food Stamps/Medicaid at time of interview

N/A

Percent who say life is "better" after welfare

N/A

Percent receiving cash assistance one year after exit

N/A

Employment & Income

  • During the 1st quarter after exit, the median quarterly earnings for all leavers were $2,654, increasing to $2,997 by the 4th quarter after exit.
  • The median earnings during the 4th quarter after exit for those who attended college was $3,245, $2,797 for those who completed high school and $2,295 for those who did not complete high school.
  • Only 29% of leavers were employed in all four quarters the first year after leaving TANF, 37% were employed less than four quarters and 34% were not employed in any quarter during the 1st year after exit.
  • 52% of leavers living in urban areas were employed in the 4th quarter after exit compared to 46% of those living in rural areas. Additionally, 57% of leavers who had attended college were employed in the 4th quarter after exit compared to 45% of leavers who did not complete high school.
  • Type of occupation had a significant impact on job stability. Forty-five percent of leavers working in a clerical position were employed in all 4 quarters after exit compared to 44% of those in professional or paraprofessional occupations, 36% of those in retail positions, and 27% of those in factory or assembly positions.

Other Supports (at time of interview)

  • 11% of all leavers reported receiving child support on a regular basis. 12% reported receiving SSI.
  • 25% of leavers were living with an employed adult.
  • 60% of respondents who identified lack of education as a barrier to leaving TANF were on welfare 12 months after exit compared to slightly less than half who cited a lack of child care, lack of suitable jobs or health problems.

Family Well-Being

  • 75% of all leavers had earnings below the poverty level, 48% had earnings below 50% of the poverty level and 41% reported having no income at all. Conversely, 13% had earnings at 130% of the poverty level or higher.
  • 79% of leavers living in rural areas had incomes below the poverty level compared to 69% of leavers in urban areas.
  • Recidivism rates 12 months after exit were highest for those who left TANF because they were sanctioned (27%), they got married (18%), or because they found a job or higher paying job (13%).


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