This introductory chapter provides an overview of the specific summary measure of welfare dependence proposed by a bipartisan Advisory Board8 and how this measure was adopted for use in this report series. It also discusses summary measures of poverty, following the Advisory Board’s recommendation that dependence measures not be assessed in isolation from other measures of economic well-being. The introduction concludes with a discussion of data sources used for the report.
Chapter II of this report, Indicators of Dependence, presents ten indicators of welfare dependence and recipiency. These indicators include dependence measures based on total income from all three programs – TANF, SNAP, and SSI – as well as measures of recipiency for each of the three programs considered separately. Labor force participation among families receiving welfare and benefit receipt across multiple programs are also shown. The second half of the chapter includes longitudinal data on transitions on and off welfare programs and spells of program recipiency, including spells of TANF receipt among persons in families that have no attachment to the labor market. Also, this section includes a measure of long-term program receipt of up to 10 years, and a measure of events associated with the beginning and ending of program spells.
Chapter III, Predictors and Risk Factors Associated with Welfare Receipt, focuses on predictors of welfare dependence – risk factors believed to be associated with welfare receipt. These predictors are shown in three different groups:
(1) Economic security – including various measures of poverty, the effect of receipt of child support on poverty rates, and food insecurity – is important in predicting dependence because families with fewer economic resources are more likely to rely on welfare programs for their support.
(2) Measures of the work status and potential barriers to employment of adult family members also are critical, because families must generally receive an adequate income from employment in order to avoid dependence without severe deprivation.
(3) Finally, data on nonmarital births are important. According to SIPP data (see Indicator 10b) 25.4 percent of single mother TANF entries were associated with a new child being added to the family during the 2008-2012 period.
Additional data and technical notes are presented in four appendices. Appendix A provides basic program data on each of the main welfare programs and their recipients, including historical trends and subnational estimates. Appendix B shows how dependence is affected by the inclusion of benefits from the SSI program; Appendix C includes additional data on non-marital childbearing; Appendix D provides background information on several data and technical issues; and Appendix E explains the methodology behind calculating the poverty rate and the supplemental poverty rate. The main welfare programs in Appendix A include the following:
- The Temporary Assistance for Needy Families (TANF) program provides monthly cash benefits and services to eligible families with children and is run directly by the states. Prior to 1996 welfare cash benefits were provided through the Aid to Families with Dependent Children (AFDC) program. Data on cash benefits under the TANF and AFDC programs are provided in Appendix A, with AFDC data provided from 1962 through June 1997, and TANF data from July 1997 through 2013.
- The Supplemental Nutrition Assistance Program (SNAP) provides monthly benefits to individuals living in families or alone, provided their income and assets are below limits set in federal law. Prior to October 1, 2008, these food assistance benefits were provided through the Food Stamp Program. Appendix A provides historical data on food assistance from 1962 to 2013.
- The Supplemental Security Income (SSI) program provides monthly cash payments to elderly, blind or disabled individuals or couples whose income and assets are below levels set in federal law. Though the majority of recipients are adults, disabled children also are eligible. Historical data from 1974 through 2013 are provided in Appendix A.
8 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.