Abstract
This paper examines the interaction between the Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC) programs in the "pre-welfare reform" period (1990 to 1996). The paper also discusses the potential impact of welfare reform on the interaction between SSI and Temporary Assistance for Needy Families (TANF) (the program that replaced AFDC).
The Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC) programs serve overlapping target groups. SSI serves adults and children with disabilities from low-income families, while AFDC serves low-income families with children. Consequently, policy changes in one program can affect the other.
Many have anticipated that the implementation of the welfare reform legislation in August 1996, which transformed AFDC into the Temporary Assistance for Needy Families (TANF) program, would eventually increase SSI participation for two reasons. First, the new TANF work requirements and time limits would induce more AFDC/TANF recipients with disabilities to obtain SSI benefits. Second, the change from open ended funding on a matching basis for AFDC to cash assistance block grants for TANF creates a stronger incentive for states to shift welfare recipients to SSI.
The purpose of this paper is to examine the interaction between the SSI and AFDC program in the pre-reform period (1990 to 1996) and to discuss the potential implications of the welfare reform changes on this interaction. We examine the interaction of these programs for young women (age 18 to 40) and children (age 0 to 17) using matched data from the Survey of Income and Program Participation (SIPP) and Social Security Administration (SSA) records (SIPP/SSA data).
We find a very strong link between AFDC and SSI for young women and children. Significant portions of young female and child SSI recipients in the 1990 to 1993 period were in AFDC families and/or had received AFDC in the past. In addition, a substantial share of young females and children who were AFDC recipients during this period eventually entered SSI. Because the SSI program is now serving a much larger population of families with young women and children than in the past, SSA might need to develop policies to better serve this group. The findings also suggest that this period is a poor "baseline" against which to measure the impact of TANF, primarily because of the instability in programs and policies.
A full copy of the paper is available in Social Security Bulletin, 2001/2002, Vol 64, No. 1, pp. 84-114. For more information, please see http://www.ssa.gov/policy/pubs/SSB.
For a policy brief on the findings from this paper, please see: http://www.ilr.cornell.edu/ped/dep/dep_pubs.html?cat_id=8
The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.
Usage, posting and reprint of materials on the UI web site:
Most publications may be downloaded free of charge from the web site in PDF format. This information may be used and copies made for research, academic, policy or other non-commercial purposes. Proper attribution is required.
Copyright of the written materials contained within the Urban Institute website is owned or controlled by the Urban Institute. Posting UI research papers on other websites is permitted subject to prior approval from the Urban Institute—contact paffairs@urban.org.
If you are unable to access or print the PDF document please contact us or call the Publications Office at (202) 261-5687.
Browse by Topic:
