Examining the Effect of Welfare Reform on the Economic Well-Being of the Elderly

This study examines the impact of passage of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (commonly referred to as the Welfare Reform Act) on the economic well-being of the elderly. Longitudinal data from the 1994 and 1998 waves of the Health and Retirement Study were used to examine change in participation of several public welfare programs. Change in respondents' participation in SSI, Food Stamps, and Medicaid between pre- and post-Welfare Reform years were examined using the one-way chi-square test. Multivariate analysis was conducted to analyze the factors associated with moving into poverty and with leaving welfare, SSI, Food Stamps and Medicaid. Results indicate that elderly tended to leave Food Stamps and Medicaid after Welfare Reform but there was not enough evidence to say that this result is a direct result of Welfare Reform. Results of logistic analysis of leaving Food Stamps and Medicaid indicate, not surprisingly, income and job status were statistically significant factors in leaving these welfare programs.

Welfare

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