State TANF Policies and Employment Outcomes among Welfare Leavers

This study examines the extent to which employment outcomes for welfare leavers differ depending on TANF policies adopted by states. Data on welfare leavers come from the 1996 panel of the Survey of Income and Program Participation. Policies in the leavers' states of residence are characterized by factor scores. Results suggest that employment and job quality outcomes for welfare leavers are associated with several aspects of states' TANF rules. For example, the stringency of work requirements is positively related to employment among later welfare leavers, but neither the leniency nor stringency of work requirements is related to employment among early welfare leavers. Lenient work requirements are found to increase the probability that welfare leavers' first jobs off welfare carry employer-provided health insurance.