Indicators of Welfare Dependence: Annual Report to Congress, 2008. Indicator Summary


Indicator 1: Degree of Dependence.  This indicator focuses most closely on those individuals who meet the Advisory Board’s proposed definition of “dependence.”  In addition to examining individuals with more than 50 percent of their annual family income from AFDC/TANF cash assistance, food stamps and/or SSI benefits, it shows various levels of dependence by examining those with more than 0 percent, 25 percent and 75 percent of their family income from these sources (Indicators 1a and 1b).  This indicator also shows the average percentage of income from means-tested assistance and earnings received by families with various levels of income relative to the poverty level (Indicators 1c and 1d).

Indicator 2: Receipt of Means-Tested Assistance and Labor Force Attachment.  This indicator looks further at the relationship between receipt of means-tested assistance and participation in the labor force. This is an important issue because of the significant number of low-income individuals that use a combination of means-tested assistance and earnings from the labor force.

Indicator 3: Rates of Receipt of Means-Tested Assistance.  This indicator paints yet another picture of dependence by measuring recipiency rates, that is, the percentage of the population that receives AFDC/TANF, food stamps or SSI in an average month.  Administrative data for the AFDC/TANF, Food Stamp and SSI programs make these figures readily available over time, allowing a better sense of historical trends than is available from the more specialized indicators of dependence.

Indicator 4: Rates of Participation in Means-Tested Assistance Programs.  While means-tested public assistance programs are open to all that meet their requirements, not all eligible individuals and households participate in the programs.  This indicator uses AFDC/TANF, Food Stamp and SSI administrative data and microsimulation models to reflect “take-up rates” — the number of families that actually participate in the programs as a percentage of those who are estimated to be legally eligible.

Indicator 5: Multiple Program Receipt.  Depending on their circumstances, individuals may choose a variety of different means-tested assistance “packages.”  This indicator looks at the percentage of individuals receiving AFDC/TANF, food stamps and SSI in a month, examining how many rely on just one of these programs, and how many rely on a combination of two programs.

Indicator 6: Dependence Transitions.  This indicator uses data from the Survey of Income and Program Participation (SIPP) to look at whether individuals dependent on welfare in one year make the transition out of dependence in the following year.

Indicator 7: Program Spell Duration.  One critical aspect of dependence is how long individuals receive means-tested assistance. This indicator provides information on short, medium and long spells of welfare receipt for each of the three major means-tested programs — AFDC/TANF, the Food Stamp Program, and SSI.

Indicator 8: Welfare Spell Duration with No Labor Force Attachment.  This indicator is concerned with dynamics of welfare receipt among persons in families with no attachment to the labor market.  It differs from Indicator 7 in that it provides information on spells of TANF receipt during months where no one in the family worked or was officially unemployed.

Indicator 9: Long Term Receipt.  Many individuals who leave welfare programs cycle back on after an absence of several months.  Thus it is important to look beyond individual program spells, measured in Indicator 7, to examine the cumulative amount of time individuals receive assistance over a period of several years.

Indicator 10: Events Associated with the Beginning and Ending of Program Spells.  To gain a better understanding of welfare dynamics, it is important to go beyond measures of spell duration and examine information regarding the major events in people’s lives that are correlated with the beginnings or endings of program spells. This measure focuses on receipt of TANF.

View full report


"report.pdf" (pdf, 673.5Kb)

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®