The Well-Being of Single-Mother Families After Welfare Reform

Abstract : "Trends in income and consumption tell very different stories about the well-being of single mothers and their children in recent years. On the one hand, data suggest that income fell noticeably for single mothers well below the poverty line, while income grew significantly for single mothers with higher incomes. On the other hand, data on how much these two groups of mothers and children consumed suggest that the material circumstances of both groups improved during the 1990s. We argue that the consumption data better reflect well-being for several reasons. First, consumption is probably measured with less error than income for poor families, and is more strongly associated with other measures of well-being such as health and housing conditions. Second, there is overwhelming evidence that income is underreported by these mothers and that the underreporting, especially of income from welfare and other transfer programs, has increased in recent years." Authors : Bruce D. Meyer and James X. Sullivan | Source : The Brookings Institution

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