Effects of Work Incentive Policies and Determinants of the Socioeconomic Status of Welfare Leavers in an Economically Disadvantaged Area

Abstract This study explores how work incentive policies influence the socioeconomic status of welfare leavers. Logistic and ordinal regression methods were used to analyze 1999 statewide survey data on West Virginia WORKS leavers. This study found that people who had more months of eligibility remaining for TANF were more likely to have jobs than those with fewer months of eligibility. People who had been sanctioned for noncompliance with work requirementswere less likely to have jobs than those who had not been sanctioned. However, childcare assistance had a significant influence on the employment of welfare leavers. EITC was significantly associated with the expectation of high economic status. Policy implications are discussed.