Welfare dependency
Encyclopedia
Welfare dependency is the state in which a person or household is reliant on government welfare benefits for their income for a prolonged period of time, and without which they would not be able to meet the expenses of daily living. The United States Department of Health and Human Services
defines welfare dependency as the proportion of all individuals in families which receive more than 50 percent of their total annual income from Temporary Assistance for Needy Families
(TANF), food stamps, and/or Supplemental Security Income
(SSI) benefits.
Welfare dependence in the United States is typically associated with female-headed households with children. Welfare reform
during the Clinton presidency placed time limits on benefit receipt, replacing Aid for Families with Dependent Children with Temporary Assistance for Needy Families
and requiring that recipients begin to work after two years of receiving these payments. Such measures were intended to decrease welfare dependence: The House Ways and Means Committee stated that the goal of the Personal Responsibility and Work Opportunity Act
was to "reduce the length of welfare spells by attacking dependency while simultaneously preserving the function of welfare as a safety net for families experiencing temporary financial problems."
Long-term welfare dependency may be marked by repeated short periods of time in which benefits are not drawn. Analysis of the Panel Study of Income Dynamics from 1983 to 1988 found that one-quarter of women in the study returned to receiving welfare within one year of exiting, and forty-two percent returned within two years.
The term "welfare dependency" is itself loaded, often carrying derogatory connotations that the recipient is unwilling to work. While the term in and of itself is politically neutral, merely describing a state of drawing benefits, it is sometimes used colloquially in a manner that can be interpreted as "blaming the victim." Unlike the stereotype of the welfare queen
, people viewed as welfare-dependent are not defrauding the system, but rather are seen doing nothing to improve their situation, choosing to draw benefits when there are alternatives available. This contributes to stigmatization of welfare recipients.
related to being on welfare, lack of job opportunities because he or she did not observe a parent's participation in the labor market, and detailed knowledge of how the welfare system works imprinted from a young age. In some cases, the unemployment trap may function as a perverse incentive to remain dependent on welfare payments, as returning to work would not significantly increase household earnings as welfare benefits are withdrawn. This trap can be eliminated through the addition of work subsidies. Other factors which entrench welfare dependency include lack of affordable childcare, low education and skill levels, and unavailablity of suitable jobs.
, stating that individual behaviors and policies that reward them lead to the entrenchment of poverty. Lawrence M. Mead
's 1986 book Beyond Entitlement: The Social Obligations of Citizenship argued that American welfare was too permissive, giving out benefit payments without demanding anything from poor people in return, particularly not requiring the recipient to work. Mead viewed this as directly linked to the higher incidence of social problems
among poor Americans, more as a cause than an effect of poverty:
"[F]ederal programs have special difficulties in setting standards for their recipients. They seem to shield their clients from the threats and rewards that stem from private society – particularly the marketplace – while providing few sanctions of their own. The recipiets seldom have to work or otherwise function to earn whatever income, service, or benefit a program gives; meager though it may be, they receive it essentially as an entitlement. Their place in American society is defined by their need and weakness, not their competence. This lack of accountability is among the reasons why nonwork, crime, family breakup, and other problems are much commoner among recipients than Americans generally."
Charles Murray
argued that American social policy ignored people's inherent tendency to avoid hard work and be amoral, and that from the War on Poverty
onward the government had given welfare recipients disincentives to work, marry, and have children in wedlock. His 1984 book Losing Ground was influential in the welfare reforms of the 1990s.
United States Department of Health and Human Services
The United States Department of Health and Human Services is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. Its motto is "Improving the health, safety, and well-being of America"...
defines welfare dependency as the proportion of all individuals in families which receive more than 50 percent of their total annual income from Temporary Assistance for Needy Families
Temporary Assistance for Needy Families
Temporary Assistance for Needy Families is one of the United States of America's federal assistance programs. It began on July 2, 1997, and succeeded the Aid to Families with Dependent Children program, providing cash assistance to indigent American families with dependent children through the...
(TANF), food stamps, and/or Supplemental Security Income
Supplemental Security Income
Supplemental Security Income is a United States government program that provides stipends to low-income people who are either aged , blind, or disabled. Although administered by the Social Security Administration, SSI is funded from the U.S. Treasury general funds, not the Social Security trust fund...
(SSI) benefits.
Welfare dependence in the United States is typically associated with female-headed households with children. Welfare reform
Personal Responsibility and Work Opportunity Act
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is a United States federal law considered to be a fundamental shift in both the method and goal of federal cash assistance to the poor. The bill added a workforce development component to welfare legislation, encouraging...
during the Clinton presidency placed time limits on benefit receipt, replacing Aid for Families with Dependent Children with Temporary Assistance for Needy Families
Temporary Assistance for Needy Families
Temporary Assistance for Needy Families is one of the United States of America's federal assistance programs. It began on July 2, 1997, and succeeded the Aid to Families with Dependent Children program, providing cash assistance to indigent American families with dependent children through the...
and requiring that recipients begin to work after two years of receiving these payments. Such measures were intended to decrease welfare dependence: The House Ways and Means Committee stated that the goal of the Personal Responsibility and Work Opportunity Act
Personal Responsibility and Work Opportunity Act
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is a United States federal law considered to be a fundamental shift in both the method and goal of federal cash assistance to the poor. The bill added a workforce development component to welfare legislation, encouraging...
was to "reduce the length of welfare spells by attacking dependency while simultaneously preserving the function of welfare as a safety net for families experiencing temporary financial problems."
Long-term welfare dependency may be marked by repeated short periods of time in which benefits are not drawn. Analysis of the Panel Study of Income Dynamics from 1983 to 1988 found that one-quarter of women in the study returned to receiving welfare within one year of exiting, and forty-two percent returned within two years.
The term "welfare dependency" is itself loaded, often carrying derogatory connotations that the recipient is unwilling to work. While the term in and of itself is politically neutral, merely describing a state of drawing benefits, it is sometimes used colloquially in a manner that can be interpreted as "blaming the victim." Unlike the stereotype of the welfare queen
Welfare queen
A welfare queen is a pejorative phrase used in the United States to describe people who are accused of collecting excessive welfare payments through fraud or manipulation. Reporting on welfare fraud began during the early 1960s, appearing in general interest magazines such as Readers Digest...
, people viewed as welfare-dependent are not defrauding the system, but rather are seen doing nothing to improve their situation, choosing to draw benefits when there are alternatives available. This contributes to stigmatization of welfare recipients.
Mechanisms of action
There is an association between a parent's welfare dependency and that of her children; a mother's welfare participation increases the likelihood that her daughter, when grown, will also be dependent on welfare. The mechanisms through which this happens may include the child's lessened feelings of stigmaStigma
Stigma is a word that originally means a "sign", "point", or "branding mark". It may refer to:-As a symbolic mark:* The Mark of Cain* Stigmata, bodily marks or wounds resembling the crucifixion wounds of Jesus...
related to being on welfare, lack of job opportunities because he or she did not observe a parent's participation in the labor market, and detailed knowledge of how the welfare system works imprinted from a young age. In some cases, the unemployment trap may function as a perverse incentive to remain dependent on welfare payments, as returning to work would not significantly increase household earnings as welfare benefits are withdrawn. This trap can be eliminated through the addition of work subsidies. Other factors which entrench welfare dependency include lack of affordable childcare, low education and skill levels, and unavailablity of suitable jobs.
Measurement
The United States Department of Health and Human Services defines ten indicators of welfare dependency:- Indicator 1: Degree of Dependence
- Indicator 2: Receipt of Means-Tested Assistance and Labor Force Attachment
- Indicator 3: Rates of Receipt of Means-Tested Assistance
- Indicator 4: Rates of Participation in Means-Tested Assistance Programs
- Indicator 5: Multiple Program Receipt
- Indicator 6: Dependence Transitions
- Indicator 7: Program Spell Duration
- Indicator 8: Welfare Spell Duration with No Labor Force Attachment
- Indicator 9: Long Term Receipt
- Indicator 10: Events Associated with the Beginning and Ending of Program Spells
Mismatch theory
Kasarda and Ting (1996) argue that poor people become trapped in dependency of Welfare due to skills mismatch and spatial mismatch. Post-WWII, American cities have produced a surplus of high-skilled jobs which are beyond the reach of most urban Welfare recipients, who do not have the appropriate skills. Meanwhile, low-skilled jobs have decreased within the city, moving out toward more economically advantageous suburban locations. Welfare recipients make the rational decision to do what is economically advantageous to them, which often means not taking low-paid work that would require expensive childcare and lengthy commutes.Structural problem perspective
One perspective of welfare dependency argues that structural problems, particularly persistent racism, have concentrated disadvantage among urban Black residents and thus caused their need for welfare. Housing policies segregated Black Americans into impoverished neighborhoods and formally blocked avenues to quality education and high-paying employment. Economic growth in the 1980s and 1990s did not alleviate poverty because wages remained stagnant. Poverty could be alleviated by better-targeted economic policies as well as concerted efforts to penalize racial discrimination.Conservative perspective
Conservative views of welfare dependency come from the perspective of classical economicsClassical economics
Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill....
, stating that individual behaviors and policies that reward them lead to the entrenchment of poverty. Lawrence M. Mead
Lawrence M. Mead
Lawrence M. Mead is a Professor in the Department of Politics at New York University, where he is currently Professor of Politics and Public Policy.Mead is best known as an expert on poverty and welfare in the United States...
's 1986 book Beyond Entitlement: The Social Obligations of Citizenship argued that American welfare was too permissive, giving out benefit payments without demanding anything from poor people in return, particularly not requiring the recipient to work. Mead viewed this as directly linked to the higher incidence of social problems
Social problems
Social problems are problems and difficulties that people often face in society. These include:*crime*corruption*poverty*homelessness*hunger*disease*drug addiction*alcoholism*schizophrenia*depression*pollution...
among poor Americans, more as a cause than an effect of poverty:
"[F]ederal programs have special difficulties in setting standards for their recipients. They seem to shield their clients from the threats and rewards that stem from private society – particularly the marketplace – while providing few sanctions of their own. The recipiets seldom have to work or otherwise function to earn whatever income, service, or benefit a program gives; meager though it may be, they receive it essentially as an entitlement. Their place in American society is defined by their need and weakness, not their competence. This lack of accountability is among the reasons why nonwork, crime, family breakup, and other problems are much commoner among recipients than Americans generally."
Charles Murray
Charles Murray
Charles Murray is the name of:*Charles Murray, 1st Earl of Dunmore *Charles Augustus Murray , British author diplomat*Charles Murray, 7th Earl of Dunmore *Charles James Murray , British politician...
argued that American social policy ignored people's inherent tendency to avoid hard work and be amoral, and that from the War on Poverty
War on Poverty
The War on Poverty is the unofficial name for legislation first introduced by United States President Lyndon B. Johnson during his State of the Union address on January 8, 1964. This legislation was proposed by Johnson in response to a national poverty rate of around nineteen percent...
onward the government had given welfare recipients disincentives to work, marry, and have children in wedlock. His 1984 book Losing Ground was influential in the welfare reforms of the 1990s.
See also
- Feminization of povertyFeminization of povertyFeminization of poverty describes a phenomenon in which women represent disproportionate percentages of world’s poor. UNIFEM describes it as "the burden of poverty borne by women, especially in developing countries"...
- Personal Responsibility and Work Opportunity ActPersonal Responsibility and Work Opportunity ActThe Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is a United States federal law considered to be a fundamental shift in both the method and goal of federal cash assistance to the poor. The bill added a workforce development component to welfare legislation, encouraging...
- Welfare reformWelfare reformWelfare reform refers to the process of reforming the framework of social security and welfare provisions, but what is considered reform is a matter of opinion. The term was used in the United States to support the Personal Responsibility and Work Opportunity Act...
- Welfare's effect on povertyWelfare's effect on povertyThe effect of social welfare on poverty is controversial. Since the goal of welfare programs is to reduce poverty, it has been debated, primarily in the United States, whether or not welfare programs achieve this goal....