Implications of the Literature
Are there differences in the impact of welfare between Blacks, Hispanics and White cohorts?
- Yes.
What are some of the observed differences?
- Hispanics were much more likely to leave welfare once a job was found, whereas blacks were more likely to combine earnings and welfare.
- Among black households, the number of households with earnings increased after welfare reforms, but overall earnings went down.
- Employment-focused mixed-activity programs and earning supplement programs increased earnings the most for white welfare recipients.
- Job-search-first and education-first programs increased earnings more for Hispanics than Blacks.
- The effect of time limits seems to disproportionately fall on non-white recipients.
- Demand for welfare recipients is higher in low-skilled jobs.
- Spatial mismatch may be responsible for the recipients’ disability to find transportation to suburban jobs.
- Minorities on welfare are hired less often than their white counterparts.
- Labor Force Attachment Program impacts did not differ significantly across ethnic groups.
- Hispanic and African American Women tend to stay on welfare the longest.
- Programs that supplements earnings increased earnings for all racial and ethnic groups.
- The presence of welfare-to-work programs increases the demand for both minority and white welfare recipients.
What do these differences mean?
- The specific welfare program you are placed in matters a great deal. Education and training programs are better than job-placement programs and can mitigate some of the other negative impacts that befall minorities
- Location also plays an extremely important role in receiving welfare benefits and services. The fact that minorities often live in the inner city, where job growth is anemic, negatively impacts their ability to find employment.
- The worker who benefits the most from TANF and Welfare Reform is a non-minority, low skilled, suburban worker.