US Welfare Caseloads: Analysis

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Table of Contents

Introduction
Welfare Caseloads Statistics
Graphs
Reference

Introduction

In the first instance, where the substitution effect is more than the income one, workers are likely to work more hours. If the wage rate decreases but the income effect is higher, then workers will still want to work. In the third case, a lowering wage rate and the dominance of the substitution effect may result in workers putting in fewer hours. Finally, increasing wage rate and power of income effect will allow workers to work fewer hours.

Welfare Caseloads Statistics

In 2008, the total number of families in the Temporary Assistance for Needy Families (TANF) was 1,633,011 (Office of Family Assistance [OFA], 2022). Most recently – in 2021 – the caseload lowered to 772,066 in June (OFA, 2022). This means that the number of families participating in the program has dropped by approximately 53 percent. For my state, the rates are similar – the number of families declined from almost 50 thousand to about 37 thousand, declining by over 25 percent as a result. Between 1996 and 2008, the number of cases changed from 4,543,397 to 1,633,011 across the US (OFA, 2022). This means that the rate of families in the TANF program has decreased by 64 percent. It is possible that the changing surroundings also made it harder for families to apply to the program. A change in TANF policies could also lead to fewer cases being accepted.

Graphs

As can be seen from Figure 1 and Figure 2 below, the rate of TANF families continues to decrease over the years. First of all, one can see a significant drop in cases between 1996 and 2008, while a steady decline between 2008 and 2020 is more likely, as the number declined much less. Using this data, one can suggest that the approach to how the program is run has also been altered. Now, the TANF program is likely more difficult to apply for, and not as many families are eligible.