Indicators of Welfare Dependence: Annual Report to Congress, 2004. Indicator 1. Degree of Dependence

04/27/2005

Figure IND 1a. Percentage of Total Income from Means-Tested Assistance Programs: 2001

Figure IND 1a. Percentage of Total Income from Means-Tested Assistance Programs: 2001

Source: March CPS data, analyzed using the TRIM3 microsimulation model.


  • Only 3.1 percent of the total population in 2001 received more than half of their total family income from TANF, food stamps and SSI. As shown in Table IND 1b, the percentage of families dependent on public assistance has dropped by almost 50 percent since 1993, with most of the decline occurring since 1996. As noted in Chapter I, preliminary data suggest dependency may increase slightly but will still be near 3 percent in 2002.
  • Under 13 percent of the overall population received at least one dollar in means-tested assistance in 2001. However, for over half of these individuals (7 percent of the total population), such assistance represented 25 percent or less of annual family income. The vast majority (87 percent) of the population received no means-tested assistance in 2001.
  • As shown in Table IND 1a, individuals living in female-headed families were much more likely to be dependent on assistance from means-tested programs compared to individuals in married-couple or male-headed families (11.9 percent compared to 1.0 and 4.0 percent respectively).
  • In 2001, one in four individuals receiving some public assistance reported that TANF, food stamps, and SSI accounted for more than half of their total family income. This number reflected a decline in dependence since 1996, when nearly one in three individuals receiving public assistance were dependent on it.

Table IND 1a. Percentage of Total Annual Family Income from Means-Tested Assistance Programs, by Race/Ethnicity and Age: 2001

  0% 0% and <= 25% 25% and <= 50% 50% and <= 75% 75% and <= 100% Total 50%
All Persons 87.4 7.3 2.2 1.0 2.1 3.1
Racial/Ethnic Categories
Non-Hispanic White 91.8 5.1 1.3 0.5 1.3 1.8
Non-Hispanic Black 73.7 12.2 5.3 3.0 5.8 8.8
Hispanic 78.4 13.0 4.1 1.5 3.0 4.5
Age Categories
Children Ages 0-15 81.9 9.5 3.5 1.9 3.2 5.1
Women Ages 16-64 87.5 7.2 2.1 1.0 2.3 3.3
Men Ages 16-64 90.4 6.2 1.4 0.5 1.5 2.0
Adults Age 65 and over 90.4 5.8 1.9 0.6 1.3 1.9
Family Categories
Individuals in Married-Couple Families 92.6 5.4 1.0 0.4 0.6 1.0
Individuals in Female-Headed Families 63.6 16.4 8.0 4.4 7.5 11.9
Individuals in Male-Headed Families 78.8 13.3 3.9 1.4 2.6 4.0
Unrelated Individuals 90.0 5.0 1.2 0.4 3.4 3.8

Note: Means-tested assistance includes AFDC/TANF, SSI, and food stamps. Total 50% includes all persons with more than 50 percent of their total annual family income from these means-tested programs. Income includes cash income and the value of food stamps. Spouses are not present in the Female-Headed and Male-Headed family categories.

Persons of Hispanic ethnicity may be of any race. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately.

Source: March CPS data, analyzed using the TRIM3 microsimulation model.


Table IND 1b. Percentage of Total Annual Family Income from Means-Tested Assistance Programs: 1993-2001

  0% >0% and <= 25% 25% and <= 50% 50% and <= 75% 75% and <= 100% Total 50%
1993 83.4 7.8 3.0 1.8 4.1 5.9
1994 82.8 8.4 3.1 1.8 4.0 5.8
1995 83.2 8.5 3.1 1.8 3.5 5.3
1996 84.0 7.8 3.1 1.9 3.3 5.2
1997 85.3 7.7 2.5 1.5 3.1 4.5
1998 86.5 7.3 2.5 1.3 2.5 3.8
1999 86.7 7.7 2.3 1.1 2.2 3.3
2000 87.5 7.3 2.2 1.0 2.0 3.0
2001 87.4 7.3 2.2 1.0 2.1 3.1

See above for note and source.


Figure IND 1b. Percentage of Total Annual Income from Various Sources, by Poverty Status: 2001

Figure IND 1b. Percentage of Total Annual Income from Various Sources, by Poverty Status: 2001

Source: March CPS data, analyzed using the TRIM3 microsimulation model.


  • Those in families with income below the poverty level received half (50 percent) of their total family income from earnings and 29 percent of their total family income from meanstested assistance programs (TANF, SSI, and food stamps) in 2001. In contrast, those with family income over 200 percent of the poverty level received the majority (87 percent) of their income from earnings and less than one percent of their income from means-tested assistance (a percentage so small, it is not visible in Figure IND 1b).
  • The percentage of family income received from earnings is inversely proportional to overall family income relative to the poverty line. For example, the percentage of income received from earnings for those living in deep poverty (below 50 percent of poverty) was only 32 percent, compared to 50 percent for all poor individuals in 2001.
  • On average, children were more likely than the elderly to live in families receiving a higher percentage of their income from means-tested assistance programs, as shown by Table IND 1c. The elderly received more income from other income sources, such as Social Security benefits and private pensions.
  • The percentage of income received from earnings for families with incomes below the poverty level has increased over time, as shown in Table IND 1d. In 1995, poor families received 40 percent of their income from earnings; this percentage rose to 50 percent in 2001. Over the same time period, there was a decline in the percentage of income from means-tested programs among poor families from 41 percent to 29 percent.

Table IND 1c. Percentage of Total Annual Family Income from Various Sources, by Poverty Status, Race/Ethnicity, and Age: 2001

  < 50% Poverty <100% of Poverty <200% of Poverty 200% + of Poverty All Individuals
All Persons
TANF, SSI, and Food Stamps 53.0 28.6 9.1 0.2 1.0
Earnings 31.6 49.9 69.3 87.1 85.5
Other Income 15.4 21.5 21.6 12.7 13.5
Racial/Ethnic Categories
Non-Hispanic White
TANF, SSI, and Food Stamps 51.8 25.8 6.8 0.1 0.5
Earnings 28.1 45.3 64.2 86.2 84.9
Other Income 20.0 28.8 29.0 13.7 14.6
Non-Hispanic Black
TANF, SSI, and Food Stamps 61.1 38.9 15.6 0.5 3.3
Earnings 23.5 40.6 65.0 88.9 84.4
Other Income 15.3 20.6 19.4 10.6 12.3
Hispanic
TANF, SSI, and Food Stamps 42.9 23.1 8.7 0.6 2.6
Earnings 46.7 64.2 81.3 92.3 89.6
Other Income 10.4 12.7 10.0 7.1 7.8
Age Categories
Children Ages 0-5
TANF, SSI, and Food Stamps 60.1 32.1 11.0 0.2 1.8
Earnings 28.8 57.4 80.7 94.6 92.5
Other Income 11.1 10.6 8.3 5.2 5.6
Children Ages 6-10
TANF, SSI, and Food Stamps 59.5 32.4 10.9 0.1 1.6
Earnings 27.1 53.7 78.6 93.7 91.6
Other Income 13.4 13.9 10.5 6.2 6.8
Children Ages 11-15
TANF, SSI, and Food Stamps 58.2 30.7 9.9 0.1 1.3
Earnings 29.3 53.2 77.7 92.5 90.7
Other Income 12.5 16.1 12.5 7.4 8.0
Women Ages 16-64
TANF, SSI, and Food Stamps 49.9 30.1 9.8 0.2 0.9
Earnings 32.6 49.1 73.3 89.7 88.4
Other Income 17.6 20.8 16.8 10.1 10.7
Men Ages 16-64
TANF, SSI, and Food Stamps 40.6 23.3 7.6 0.2 0.6
Earnings 43.2 55.9 77.0 90.9 90.1
Other Income 16.2 20.7 15.4 8.9 9.3
Adults Age 65 and over
TANF, SSI, and Food Stamps 20.0 18.9 5.7 0.3 1.0
Earnings 10.2 5.9 9.4 36.1 32.6
Other Income 69.8 75.1 84.9 63.6 66.4

Note: Total income is total annual family income, including the value of food stamps. Other income is non means-tested, nonearnings income such as child support, alimony, pensions, Social Security benefits, interest, and dividends. Poverty status categories are not mutually exclusive.

Persons of Hispanic ethnicity may be of any race. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately.

Source: March CPS data, analyzed using the TRIM3 microsimulation model.


Table IND 1d. Percentage of Total Income from Various Sources: Selected Years

  < 50% Poverty <100% of Poverty <200% of Poverty 200%+ of Poverty
1995
TANF, SSI, and Food Stamps 65.9 41.3 14.2 0.3
Earnings 22.5 40.4 64.8 85.4
Other Income 11.6 18.3 21.0 14.3
1999
TANF, SSI, and Food Stamps 53.1 29.8 9.7 0.2
Earnings 30.2 49.3 69.1 85.0
Other Income 16.6 20.8 21.2 14.7
2000
TANF, SSI, and Food Stamps 54.3 30.3 9.8 0.2
Earnings 30.5 49.5 68.7 86.7
Other Income 15.2 20.3 21.5 13.0
2001
TANF, SSI, and Food Stamps 53.0 28.6 9.1 0.2
Earnings 31.6 49.9 69.3 87.1
Other Income 15.4 21.5 21.6 12.7

See above for note and source.

View full report

Preview
Download

"title-TOC.pdf" (pdf, 275.93Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"ch1.pdf" (pdf, 273.62Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"ch2.pdf" (pdf, 1.6Mb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"ch3.pdf" (pdf, 2.21Mb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"apa.pdf" (pdf, 7.09Mb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"apb.pdf" (pdf, 124.96Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"apc.pdf" (pdf, 1.63Mb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®

View full report

Preview
Download

"apd.pdf" (pdf, 104.39Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®