Welfare and Literacy Facts

Characteristics of the Welfare/Low Income Population
Employers' Perceptions of Welfare Recipients
Employment Status of Welfare Recipients and Former Welfare Recipients
Impact of Welfare-to-Work Strategies
Literacy and Basic Skill Levels of Welfare Recipients

1996 Welfare Reform

In 1996, there was a major reform of social welfare policy with the enactment of The Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The legislation replaced the Aid to Families with Dependent Children Program and provided states with block grants, including the Temporary Assistance for Needy Families (TANF), to design work-focused, time-limited welfare programs with the goal of moving people from welfare into work. The law also made major changes affecting child support enforcement, child care, the Food Stamp Program, disability benefits for children, and the eligibility of immigrants for federal, state, and local benefits.
(Greenburg, p1)

Characteristics of the Welfare/Low Income Population

Poverty/low income rates

In 2000, the Census Supplementary Survey found that:

• 9.57% of households had incomes below $10,000;
• 6.68% had incomes of $10,000-$14,999;
• 13.36% had incomes of $15,000-$24,999;
• 12.88% had incomes of $25,000-$34,999;
• 16.26% had incomes of $35,000-$49,999;
• 19.11% had incomes of $50,000-$74,000;
• 10.01% had incomes of $75,000-$99,999;
• 7.76% had incomes of $100,000-$149,999;
• 2.23% had incomes of $150,000-$199,999; and
• 2.14% had incomes of $200,000 or more.
  (U.S. Bureau of Census, p2)

In the 1992 National Adult Literacy Survey (NALS), the average annual household income for the total population was $30,824, compared to $10,138 for Aid to Families with Dependent Children or public assistance recipients, and $9,732 for food stamp recipients.
(Barton, p53, Table 4.4)

In the 1992 National Adult Literacy Survey (NALS), the average annual household income of the total adult population

• at prose literacy Level 1 was $15,480, compared to $8,520 for welfare recipients;
• at prose literacy Level 2 was $25,010, compared to $9,540 for welfare recipients;
• at prose literacy Level 3 was $35,020, compared to $11,710 for welfare recipients; and
• at prose literacy Level 4 was $45,610, compared to $15,820 for welfare recipients.
  (Barton, p53, Table 4.7)

Numbers on welfare

The 2000 Census Supplementary Survey found that:

• 17.06% of households received public assistance or noncash benefit(s);
• 3.83% received supplemental security income;
• 2.60% received cash public assistance benefits;
• 6.12% received food stamp benefits in the past 12 months; and
• 8.18% received free or reduced price school meals benefits in the past 12 months.
  (U.S. Bureau of Census, p2)

The 1999 National Survey of America's Families found that:

• 4.8% of families where the head of the household was a citizen received welfare, compared to 6.5% in 1994;
• 4.9% of families where the head of the household was not a citizen received welfare, compared to 8.7% in 1994; and
• 13.5% of families where the head of the household was a refugee received welfare, compared to 25.0% in 1994.
  (Fix, p28, Figure 18)

The 1997 National Survey of America's Families found the following reasons for former welfare recipients leaving welfare:

• 69% because of increased earnings or a new job;
• 10% because of the administrative hassle;
• 7% had no need or were not interested;
• 6% had a change in family situation;
• 5% received income from another source;
• 4% moved to a new country or state; and
• 6% left for other reasons.
  (Loprest, p2, Figure 1)

The National Survey of America's Families also found that of those who returned to welfare between 1997 and 1999:

• 46% were in poor mental or physical health, compared to 30% of working former recipients;
• 38% had less than a high school education, compared to 27% of working former recipients;
• 19% had children under age 1, compared to 11% of working former welfare recipients; and
• 7% had children on supplemental security income, compared to 5% of working former welfare recipients.
  (The Urban Institute, p1)

Family characteristics/environment

In 1997, of young children under age 6:

• 10.4% were extremely poor (below 50% of the poverty line);
• 11.6% were quite poor (below 50-100% of poverty line);
• 20.1% were near poor (100-185% of poverty line); and
• 57.9% were not in low-income families.
  (National Center for Children in Poverty, p2, Figure 3)

In 1997, children under age 6 living with single mothers were five times as likely to be poor (56%) as were those living with both parents (11%).
(National Center for Children in Poverty, p6)

In 1997, the poverty rate among children under age 6 whose better educated parent had:

• less than a high school degree was 62.5%;
• a high school degree was 29.2%;
• some college was 15.2%; and
• a college degree was 2.8%.
  (National Center for Children in Poverty, p7, Figure 9)

Literacy and Basic Skill Levels of Welfare Recipients

In the 1992 NALS, the average prose literacy proficiency of the total population was 272 (Level 2), compared to 243 (Level 2) for the population who received Aid to Families with Dependent Children or public assistance, and 236 (Level 2) for the population who received food stamps.
(Barton, p14, Figure 1.1)

In the 1992 NALS,

• 31% of welfare women had minimal skills (similar to high school dropouts/NALS Level 1), compared to 13% of non-welfare women;
• 37% had basic skills (similar to below average high school graduates/NALS Level 2), compared to 25% of non-welfare women;
• 25% had competent skills (similar to people with some postsecondary education/NALS Level 3), compared to 37% of non-welfare women; and
• 7% had advanced/superior skills (similar to people with a bachelor's degree or more/NALS Level 4/5), compared to 25% of non-welfare women.
  (Carnevale, p12, Figure 3)

In the 1992 NALS, the average prose literacy proficiency of the total population:

• without a high school diploma was 218 (Level 1), compared to 212 (Level 1) for welfare recipients;
• with a high school diploma was 270 (Level 2), compared to 261 (Level 2) for welfare recipients;
• with a postsecondary education was 310 (Level 3), compared to 287 (Level 3) for welfare recipients
  (Barton, p43, Figure 3.1)

In the 1992 NALS, the prose literacy proficiency of welfare women who:

• had never been employed was 201 (Level 1), compared to 198 (Level 1) for non-welfare women;
• had not held a job in the past 3 years was 237 (Level 2), compared to 267 (Level 2) for non-welfare women; and
• who had held a job in the past 3 years was 262 (Level 2), compared to 293 (level 3) for non-welfare women.
  (Carnevale, p16, Figure 5)

In the 1992 NALS, the average prose proficiency of the total population who described themselves as reading English "very well" or "well" was 282 (Level 3), compared to 255 (Level 2) for welfare recipients who described themselves as reading English "very well" or "well."
(Barton, p32, Table 1.2)

The National Survey of American Families found that in 1996, the heads of low-income families had the following educational backgrounds:

• 35.2% had less than a high school education, compared to 4.3% of higher-income families;
• 39.3% had a high school education or GED, compared to 35.0% of higher-income families;
• 17.9% had some college education, compared to 24.7% of higher-income families.
• 7.6% were college graduates, compared to 36.0% of higher-income families.
  (Arc, p3, Table 2)

Impact of Welfare-to-Work Strategies

It could take

• 900 hours of education and training for minimally (similar to high school dropouts/NALS Level 1) skilled welfare women to move up to the basic level (similar to below average high school graduates /NALS Level 2);
• 200 hours of education and training for basic skilled recipients to move up to the competent level (similar to people with some postsecondary education/NALS Level 3); and
• 200 hours for competent skilled welfare women to move up to advanced skill level (similar to people with a bachelor's degree or more/NALS Level 4/5).
  (Carnevale, p6, Figure 2)

The National Survey of American Families found that in 1996, the following adults, age 25-54, participated in building work habits (an unpaid government job, job search training) and substantive skills (high school/GED classes, vocational training, college courses):

• 2% of high school dropouts, compared to 7% of AFDC recipients and 4% of food stamp recipients;
• 1% of high school graduates/GED, compared to 8% of AFDC recipients and 5% of food stamp recipients.
• 2% of adults with a postsecondary degree, compared to 2% of AFDC recipients and 1% of food stamp recipients.
  (Bell, p4, Figure 2)

The National Evaluation of Welfare-to-Work Strategies is a large scale random assignment evaluation examining the effectiveness of 11 mandatory welfare-to work programs operated in seven locales. The evaluation found that over a four-year follow-up period:

• Welfare recipients in employment-focused programs were employed for an average of 8.5 quarters, compared to 8.1 for recipients in education-focused programs.
  (Martinson, p4, Figure 2)
• The first employment spell of welfare recipients in employment-focused programs lasted 5.3 quarters, compared to 5.3 quarters for recipients in education-focused programs.

At the end of the four-year follow-up period:

• 22.3% of welfare recipients in employment-focused programs were still employed in their first employment spell, compared to
• 25.6% of recipients in education-focused programs.
  (Martinson, p9, Table 2)

The percentage of welfare recipients who were employed for a spell lasting 4 or more quarters with average quarterly earnings of $2,500 or more was:

• 29.1% for recipients in employment-focused programs, compared to
• 28.6% for recipients in education-focused programs.

The average percentage change in earnings between the first employment spell and the last measured quarter of employment was:

• 30.7% for welfare recipients in employment-focused programs, compared to
• 32.0% for welfare recipients in education-focused programs.

The average quarterly earnings of welfare recipients were:

• $2,315 for recipients in employment-focused programs, compared to
• $2,360 for recipients in education-focused programs.

The percentage of welfare recipients who earned more than $10,000 or more in year 4 was:

• 27.0% for recipients in employment-focused programs, compared to
• 27.5% for recipients in education-focused programs.
  (Martinson, 11, Table 3)

Employers' Perceptions of Welfare Recipients

The 1997 Economic and Social Research Institute's Survey of Employers' Attitudes Hiring Welfare Recipients found that 62% of employers nationwide had hired welfare recipients.
(Regenstein, p15, Figure 4)

A 1998-99 survey of employers found that eight months after their hire date:

• 75% of welfare recipients were still employed;
• 14% had quit voluntarily;
• 8% had been laid off or other; and
• 3% had been discharged.
  (Holzer, p2, Figure 1)

The survey also questioned employers on the performance of welfare recipients, compared to typical employers. They found:

• 49% of welfare recipients performed similar to typical employees in the job;
• 35% performed better than typical employees; and
• 16% performed worse.
  (Holzer, p2, Figure 2)

Employers also reported that:

• 41% of former welfare recipient employees had problems with absenteeism;
• 18% attitudes toward work;
• 16% relations with coworkers;
• 12% with basic skills;
• 9% with jobs skills; and
• 2% with substance abuse.
  (Holzer, p3, Figure 3)

Of the recently hired welfare recipients with a reported absenteeism problem, the source of the absenteeism was:

• 64% childcare;
• 41% transportation;
• 34% physical health;
• 8% domestic violence;
• 5% mental health; and
• 15% other.
  (Holzer, p4, Figure 4)

Employment Status of Welfare Recipients and Former Welfare Recipients

A survey of single mothers who were on cash assistance/food stamps in May 1995 found that in 1998-99, of the women who were currently employed:

• the average number of months in their current job was 26.9;
• the average number of hours worked a week was 35.3;
• 36.6% had worked in the same job for at least 12 months;
• the average hourly wage was $7.63;
• average weekly earnings were $270.50; and
• 65.7% had earnings below the poverty line;
  (Polit, p23, Table 3)
• 67.7% received paid vacation, compared to 95.0% of full-time workers in medium to large private establishments;
• 54.8% received sick pay, compared to 56.0% of full-time workers in medium to large private establishments;
• 58.0% received health benefits for self and family, compared to 76.0% of full-time workers in medium to large private establishments; and
• 31.6% received tuition/education assistance, compared to 67.0% of full-time workers in medium to large private establishments.
  (Polit, p29, Figure 2)
• 32.6% were currently receiving welfare;
• 15.3% left welfare within the year before the interview;
• 37.4% left welfare more than a year before the interview.
  (Polit, p47, Table 6)

The 1999 National Survey of America's Families found that:

• 14.6% of former welfare recipients often run out of food and did not have money to buy more, compared to 11.8% in 1997;
• 32.7% had to cut the size of a meal or skip meals because there was not enough food, compared to 33.4% in 1997;
• 25.0% often worried that food would run out before they got money to buy more, compared to 17.9% in 1997.
• Also, one time 1998 46.1% of former welfare recipients were not able to pay their mortgage, rent, or utility bills, compared to 38.7% in 1997.
  (Loprest, p5, Table 2)

The 1997 National Survey of America's Families found that:

• 43% of welfare leavers were in service occupations;
• 17% were in administrative/clerical occupations;
• 13% were managers/professionals/technicians;
• 11% were in sales occupations;
• 9% were operatives/laborers; and
• 7% were in craft/repair occupations.
  (The Urban Institute, p1)