TANF coverage, state TANF requirement stringencies, and child well-being

Abstract

© 2015 Elsevier Ltd.Aim: After almost two decades since welfare reform, it is crucial to understand how Temporary Assistance to Needy Families (TANF), a US cash safety net program, has affected child well-being. This study investigated the potential effect of TANF coverage on child well-being, how different stringencies in state TANF policies on time limit and work requirements affect child well-being, and whether income or employment effects explain observed relationships. Data and methods: Data from the nationally-representative Survey on Income and Program Participation, 2004 and 2008 panels, provide a unique opportunity to observe child well-being at two time points. This study includes children who are not covered by TANF 12. months before the first time point and observe how TANF coverage between two time points affect child well-being. In order to rule out pre-existing difference between TANF-covered and non-covered groups, I use difference-in-difference and propensity score matching to compare individual-level changes over time. Results: TANF coverage may improve a family's daily routine, increase parents' educational expectations of their children, and decrease children's likelihood to repeat a grade, but TANF is not able to enhance child well-being in areas of cognitive stimulation, family interactions, and parenting stress reduction. Neither state TANF policy stringencies nor income and employment changes show significant differential influence on TANF's impact on child well-being. Recommendation: To improve the well-being of children in low-income families, social assistance programs need to go beyond financial assistance and workfare approaches and consider services that could better help parents cope with stress and provide a healthy, encouraging, and stimulating environment for their children.