Welfare Reform and Economic and Housing Capacity for Low-Income Households, 1997–1999

The 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) marked the continued devolution of social policy to state and local government in addition to restructuring an ailing welfare system. Despite concerns that welfare recipients would find greater obstacles to economic stability as a result, declining welfare rolls have been accompanied by declining poverty rates over the past seven years. An important question is whether low‐income families have gained greater employment and housing capacity following welfare reform. Moreover, does capacity vary across states with different welfare policies? In addition, do families face greater economic vulnerability with respect to food scarcity and health care? This article uses the data from the 1997 and 1999 waves of the National Survey of America's Families to systematically assess differences in capacity and vulnerability among lower income families across different policy regimes. Using two measures of capacity for housing and employment, and quality of life, findings suggest that more stringent welfare rules are related to greater job and housing attainment but a reduced quality of life.