Progress 09/15/99 to 03/31/04
Outputs
Research funded under this project has produced four journal articles, two masters theses, two policy oriented publications, two conference papers referenced as Joint Center for Poverty Research Working Papers, and numerous other presentations to fellow researchers and TANF and Food Stamp program administrators. The results provide a number of insights on how rural and urban labor markets differ and how these differences impact welfare to work transitions of single mothers in rural areas. Most importantly, the findings suggest that lower levels of economic well-being in rural areas are not due to greater barriers to employment for single mothers. Rather, lower levels of well-being stem from lower real wages in rural areas. The associated policy implication is that efforts to assist single mothers in moving off of welfare and into the workforce need to focus on generating employment opportunities that provide living wages. Other important findings of the research
include the result that observed gains in well-being among families headed by single mothers are largely due to increased levels of education and improved economics conditions. Between 1999 and 2001 however, increased propensities to enter the workforce did contribute to improvements in economic well-being. This suggests that welfare reform measures that created incentives to enter the workforce are having an important lagged to impact on family well-being. The research also documents long-term declines in TANF program benefits as a share of total per-capita receipts in single mother families. In the rural south where TANF payments have historically been a relatively small component of total per-capita receipts, TANF payments and Food Stamp Program receipts declined as a share of single mother family per-capita receipts from 24.4 percent in 1993 to 9.6 percent in 1999. Further, declines in TANF program participation and FSP participation appear to be linked. Exits from the TANF
program and increases in family earnings have both contribute to observed family exits of the Food Stamp Program, but many families who have left the Food Stamp Program and TANF at the same time appear to have still been eligible for Food Stamp Program benefits. These results were used by USDA to explore options for increasing TANF leavers retention in the Food Stamp Program.
Impacts
Single mothers in non-metropolitan areas are particularly vulnerable to working poverty, given the wage wages they can expect to receive. Project results suggest that recent welfare reform efforts need to be complemented by broader efforts to support to well-being of working families below or near the poverty line.
Publications
- Mills, B.F. and G. Hazarika. Do Single Mothers Face Greater Constraints to Workforce Participation in Non-metropolitan Areas? American Journal of Agricultural Economics. 85:1 (February 2003): 143-161.
- Mills, B.F. Welfare Reform and the Well-Being of Non-Metropolitan Single Female-Headed Families: A Semi-Parametric Analysis. Journal of Agricultural and Resource Economics. 27:2 (December 2002): 515-538.
- Mills, B., J. Alwang, and G. Hazarika. The Impact of Welfare Reform Across Metropolitan and Nonmetropolitan Areas: A Nonparametric Analysis. Joint Center for Poverty Research Working Paper 183, 2000.
- Shangguan, Z. Understanding Food Stamp Program Participation Among Female-headed Households: Has it been Affected by Participation in the AFDC/TANF Program? Unpublished Masters thesis, Department of Agriculture and Applied Economics, Virginia Tech. Blacksburg, VA. 2000.
- Wang, Qiuyan. Underemployment Dynamics Among Women in the U.S. M.S. thesis, Penn State University. University Park, PA. 1999.
- Mills, B.F., J. Alwang, E. Peterson, and S. Dorai-Raj. Declining Food Stamp Program Participation: a Concern for the Rural South? Addressing the Food Assistance Needs of the South's Vulnerable Populations Policy Brief No. 3, Southern Rural Development Center, December 2001, 8 pp.
- Mills, B.F., Alwang, J.R. and Hazarika, G. 2001. The Impact of Welfare Reform: A Semi-Parametric Analysis. Review of Income and Wealth. 47(1): 81-104.
- Mills, B.F., Dorai-Raj, S., Peterson, E. and Alwang, J. 2001. Determinants of Food Stamp Program Exits. Social Service Review. 75(4).
- Bosley, S. and B.F. Mills. How Welfare Reform Impacts Non-Metropolitan and Metropolitan Counties. Rural Economic Analysis Program Report. Department of Agricultural and Applied Economics. VCE Pub. No. 448-244/REAP R046, 1999.
- Lichter, D. and L. Jensen. Rural America in Transition: Poverty and Welfare at the Turn of the 21st Century, Joint Center for Poverty Research Working Paper 187, 2000.
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Progress 10/01/02 to 09/30/03
Outputs
Project research results demonstrate that lower levels of economic well-being among single mother families in non-metropolitan areas than in metropolitan areas stem from lower wages in local labor markets. Further, participation rates are found to be similar in metropolitan and non-metropolitan areas because non-metropolitan single mothers are willing to work at lower wages. Efforts during this period focused on the completion of all project objectives and the dissemination of these project results through publication of two journal articles. Project results were also used to prepare a new research project focusing on how public assistance can better meet the needs of the increasing share of poor households with a significant attachment to the workforce.
Impacts
Single mothers in non-metropolitan areas are particularly vulnerable to working poverty, given the wage wages they can expect to receive. Project results suggest that recent welfare reform efforts need to be complemented by broader efforts to support to well-being of working families below or near the poverty line.
Publications
- Bradford Mills and Gautam Hazarika, Do Single Mothers Face Greater Constraints to Workforce Participation in Non-metropolitan Areas? American Journal of Agricultural Economics. 85:1 (February 2003): 143-161.
- Bradford Mills, Welfare Reform and the Well-Being of Non-Metropolitan Single Female-Headed Families: A Semi-Parametric Analysis. Journal of Agricultural and Resource Economics. 27:2 (December 2002): 515-538.
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Progress 10/01/01 to 09/30/02
Outputs
Research efforts focused on completing objectives four and five of the project. The results provide a number of insights on how rural and urban labor markets differ and how these differences impact welfare to work transitions of single mothers. Most importantly, the findings suggest that lower levels of economic well-being in non-metropolitan areas are not due to greater barriers to employment for single mothers. Rather, lower levels of well-being stem from lower real wages in rural areas. The associated policy implication is that efforts to assist single mothers in moving off of welfare and into the workforce need to focus on generating employment opportunities that provide living wages. Other important findings of the research include the result that observed gains in well-being among families headed by single mothers are largely due to increased levels of education and improved economics conditions. Between 1999 and 2001, however, increased propensities to enter
the workforce did contribute to improvements in economic well-being. This suggests that welfare reform measures that created incentives to enter the workforce have recently begun to impact family well-being.
Impacts
Given the current prevalence and incidence of poverty among single mothers in the non-metropolitan south, empirical analysis to inform policy formulation in these areas stands to significantly improve the long-term welfare of rural communities. In particular, by highlighting labor market constraints to increased work participation, the study will help make welfare and poverty reduction goals more consistent with economic development efforts in the rural south.
Publications
- Bradford Mills, Jeffrey Alwang, Everett Peterson, and Sundar Dorai-Raj. 'Declining Food Stamp Program Participation: a Concern for the Rural South?' Addressing the Food Assistance Needs of the South's Vulnerable Populations Policy Brief No. 3, Southern Rural Development Center, December 2001, 8 pp.
- Bradford Mills and Gautam Hazarika, 'Do Single Mothers Face Greater Constraints to Workforce Participation in Non-metropolitan Areas?' American Journal of Agricultural Economics. (In press, February 2003).
- Bradford Mills, 'Welfare Reform and the Well-Being of Non-Metropolitan Single Female-Headed Families: A Semi-Parametric Analysis.' Journal of Agricultural and Resource Economics. (In press, December 2002).
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Progress 10/01/00 to 09/30/01
Outputs
Analysis of Current Population Survey data reveals long-term declines in Temporary Assistance to Needy Family (TANF) program benefits as a share of single female-headed families with children (SFHFwC) total per-capita receipts. In the non-metropolitan south where TANF payments have historically been a relatively small component of total per-capita receipts, TANF payments and Food Stamp Program (FSP) receipts declined as a share of SFHFwC per-capita receipts from 24.4 percent in 1993 to 9.6 percent in 1999. Further, declines in TANF program participation and FSP participation appear to be linked. Mills et al. find that exits from the TANF program and increases in family earnings have both contribute to observed family exits of the Food Stamp Program. But many families who have left the FSP and TANF simultaneously appear to still be eligible for FSP benefits. Three findings with significant long-term implications for welfare reform initiates are revealed from an
examination of the changing roles of earned income and public assistance in the economic well-being of SFHFwC. First, SFHFwC made significant and broad-based gains in their economic well-being from 1993 to 1999. Second, increased propensities of single mothers to leave welfare and enter the workforce from 1993 to 1999, behavior consistent with incentives created by welfare reform measures, do not account for a major portion of these observed gains. Third, improved area economic conditions and increased educational levels of single mothers - that underlie increases in workforce participation - account for a major share of gains in well-being. On-going research shows that widely distributed increases in the well-being of non-metropolitan SFHFwC in the mid to late 1990s can be linked to increased rates of workforce participation. However, average economic well-being of SFHFwC remains lower in non-metropolitan areas than in metropolitan areas. An analysis of the determinants of earnings
and workforce participation in non-metropolitan and metropolitan areas suggests that these difference in well-being arise from less remunerative earnings opportunities in non-metropolitan areas, not greater barriers to workforce participation. But the presence of young children does create greater barriers to workforce participation in non-metropolitan areas than metropolitan areas, suggesting access to child-care may remain a constraint to employment in non-metropolitan areas. No distinct differences in workforce participation or earnings are found in the non-metropolitan south relative to other regions.
Impacts
Given the current prevalence and incidence of poverty among single mothers in the non-metropolitan south, empirical analysis to inform policy formulation in these areas stands to significantly improve the long-term welfare of rural communities. In particular, by highlighting labor market constraints to increased work participation, the study will help make welfare and poverty reduction goals more consistent with economic development efforts in the rural south.
Publications
- Mills, B.F., Alwang, J.R. and Hazarika, G. 2001. The Impact of Welfare Reform: A Semi-Parametric Analysis. Review of Income and Wealth. 47(1): 81-104.
- Mills, B.F., Dorai-Raj, S., Peterson, E. and Alwang, J. 2001. Determinants of Food Stamp Program Exits. Social Service Review. 75(4).
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Progress 10/01/99 to 09/30/00
Outputs
The analysis of Current Population Survey data reveals long-term declines in TANF benefits as a share of single female-headed families with children (SFHFwC) total per-capita receipts. The roles of earned income and public assistance in observed increases of economic well-being of SFHFwC have also been examined. A national-level analysis documents changing rates of poverty, sources of income, including welfare income, and employment among rural female-headed families with children. During the past decade, especially since welfare reform legislation was passed, rural poverty rates (including deep poverty) have declined among female-headed families and their children. Rates of welfare receipt also have dropped dramatically and labor force participation has increased along with average earnings. Moreover, the income of all rural female-headed families with children increased on average over the past few years. However, one-third of working rural female heads are in
poverty, a rate higher than at any time during the period they examined. Earnings increases stem from significant increases in education levels of single mothers and strengthening area economic conditions; and not from incentives created by welfare reform measures to leave welfare and enter the workforce. Research on participation and earnings in southern labor markets and local economic conditions and labor markets for low-skill workers has also progressed. Findings support the hypothesis that traditionally disadvantaged women, and even disadvantaged mothers with children, are more likely to be in the pool of the unemployed and discouraged workers, but have low rates of transition from these states. They are less likely, in contrast, to be out of the labor force altogether. Young children create far greater constraints to workforce participation a non-metropolitan area in Southwest Virginia than in a metropolitan area of northern Virginia. Initial estimates with the 1993 to 1999
Current Population Survey annual demographic files suggest that result also holds nationally.
Impacts
Given the current prevalence and incidence of poverty among SFHFwC in the non-metropolitan south, empirical analysis to inform policy formulation in these areas stands to significantly improve the long-term welfare of rural communities. In particular, by highlighting the labor market constraints to increased work participation, the study will help make welfare and poverty reduction goals more consistent with economic development efforts in the rural south.
Publications
- Bosley, Sarah and Bradford Mills, 1999. "How Welfare Reform Impacts Non-Metropolitan and Metropolitan Counties." Rural Economic Analysis Program Report. Department of Agricultural and Applied Economics. VCE Pub. No. 448-244/REAP R046.
- Lichter, Dan and Leif Jensen, 2000. "Rural America in Transition: Poverty and Welfare at the Turn of the 21st Century," Joint Center for Poverty Research Working Paper 187.
- Mills, Bradford, Jeffrey Alwang, and Gautam Hazarika, 2000. "The Impact of Welfare Reform Across Metropolitan and Nonmetropolitan Areas: A Nonparametric Analysis." Joint Center for Poverty Research Working Paper 183.
- Shangguan, Zhaoyun, 2000. Understanding Food Stamp Program Participation Among Female-headed Households: Has it been Affected by Participation in the AFDC/TANF Program? Unpublished Masters thesis, Department of Agriculture and Applied Economics, Virginia Tech.
- Wang, Qiuyan, 1999. Underemployment Dynamics Among Women in the U.S. M.S. thesis, Penn State University. University Park, PA.
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