lecture12_Oct17 (1)

lecture12_Oct17 (1) - Goals of 1996 Welfare Reform Goals...

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Goals of 1996 Welfare Reform § Goals Provide assistance to needy families Reduce rate of non-marital childbearing Encourage formation of 2-parent families Reduce welfare dependence through job preparation and  marriage Increase incentives for low-income women to enter labor market Shift from AFDC program to “Temporary Assistance  for Needy Families” (TANF)
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Five Main Changes of Welfare Reform 1. Emphasis on “making work pay” § Subsidies for work-related expenses § Changing benefit calculation   2. Devolution of program design to state/local level § Rationales § § Allows experimentation that provides information on “best” design § Limits authority of federal government § Arguments against § States are not able to provide countercyclical funding § Less federal oversight § Cross-state equity concerns
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3. Changing culture of welfare offices § no discretion § provide employment-related services § Emphasis on “Work First” §  Sanctions for missing job search/preparation sessions
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5. Time limits on receipt § Limit recipients to 5 years of benefits over their lifetime § States have discretion to lower this limit even further § States can also provide non-cash assistance to families beyond 5  years § 17 States have shorter lifetime limits § Extremely controversial § Deadline encourages work … § … but may cause harm to most vulnerable families
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This note was uploaded on 02/03/2012 for the course ECON 375 taught by Professor Staff during the Fall '10 term at Maryland.

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lecture12_Oct17 (1) - Goals of 1996 Welfare Reform Goals...

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