Indicators of Welfare Dependence: Annual Report to Congress, 2006. Endnotes


1. The first annual report was produced under the oversight of a bipartisan Advisory Board on Welfare Indicators, which assisted the Secretary in defining welfare dependence, developing indicators of welfare dependence, and choosing appropriate data. Under the terms of the original authorizing legislation, the Advisory Board was terminated in October 1997, prior to the submission of the first annual report.

2. This 30 percent includes just over 20 percent in unsubsidized employment and 9 percent in work preparation activities (including subsidized jobs, on-the-job training, work experience or community services). The earnings of those in unsubsidized employment would be correctly captured as income from work in national surveys. Any welfare benefits associated with work experience, community service programs or other work activities, however, would be counted as income from welfare in most national surveys, a classification incompatible with the proposed definition.

3. While TRIM-adjusted CPS data for 2004 are not yet available, non-adjusted estimates from the Annual Social and Economic Supplement to the CPS, indicate no change in the level of dependence between 2003 and 2004.

4. The effects of selected non-cash benefits (food and housing) are shown separately from the effect of taxes in Figure ECON 4 in Chapter III. Prior to 1993, taxes increased poverty. Since 1993, taxes and tax credits (including refunds through the Earned Income Tax Credit) have had the net effect of reducing poverty rates.

5. Indicator 8, Welfare Spell Duration with No Labor Force Attachment, was formerly Indicator 7, Dependence Spell Duration, in previous reports.

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