Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data

Hui Li () and Mukti Upadhyay ()
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Hui Li: Eastern Illinois University

Economics Bulletin, 2008, vol. 9, issue 2, 1-4

Abstract: This paper empirically analyzes the effects of welfare reform on US poverty by applying a two-stage estimation procedure with the random effects model using panel data from 1991 through 2003. Our results suggest that a rise in TANF or in unemployment rate raises poverty, whereas the welfare reform started in 1996 has not contributed significantly to poverty reduction.

JEL-codes: I3 (search for similar items in EconPapers)
Date: 2008-02-15
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