Work, Income and Material Hardship After Welfare Reform

Women who are accumulating the most labor market experience, measured by the proportion of months worked between February 1997 and fall 1998, have higher levels of financial and subjective well-being. They have higher monthly earnings and income net of work-related transportation and child care expenses, have experienced fewer material hardships, and are less likely to report engaging in other activities to make ends meet, such as pawning possessions, seeking charity or engaging in illegal behavior. Nonetheless, a substantial number of respondents, regardless of their level of work involvement, report serious economic difficulties and subjective financial strain. The extent of material hardship and financial strain that has been documented in this study, even among women who are working in every month, demonstrates that declining caseloads do not automatically translate into improved well-being. Much remains to be done to strengthen the post-welfare-reform safety net and alleviate the continuing hardships documented.