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Families applying for Aid to Families with Dependent Children (AFDC) between October 1993 and March 1996 (the applicant FIP sample) were randomly assigned to the intervention group, which was subject to FIP; the comparison group, which was subject to pre-welfare reform policies; or a nonresearch sample, which was subject to FIP but not part of the data collection effort. Twice as many cases were randomly assigned to the intervention group as to the comparison group. Cases with either accepted or denied AFDC applications were included in the study. This review reports results for the first of three cohorts of the applicant FIP sample, which included families that applied to FIP after welfare reform was implemented on October 1, 1993 and were randomly assigned between October 1993 and September 1994. Impacts on individuals receiving FIP at the time of random assignment, impacts on employment and earnings outcomes for the other cohorts of FIP applicants, and impacts on education among all cohorts of FIP applicants are presented elsewhere on this site.
Random assignment of applicant FIP cases took place between October 1993 and March 1996. For cohort 1 (randomly assigned between October 1993 and September 1994), outcomes were measured over four years; for cohort 2 (randomly assigned between October 1994 and September 1995), outcomes were measured over three years; and for cohort 3 (randomly assigned between October 1995 and March 1996), outcomes were measured over two years. The survey that included education attainment outcomes was administered to all three applicant FIP cohorts between July 1998 and August 1999.
The U.S. Department of Health and Human Services, ACF funded the evaluation.
All individuals were in families that had applied for AFDC benefits at the time of random assignment; the study includes those with approved and denied applications. Across all FIP applicant cohorts, most case heads were female (84 percent), White (80 percent), and never married (55 percent), and most lived in urban areas (87 percent). The average age of case heads was 27 years old, the average case size was three people, and the average age of the youngest person within the case was 4 years old. The average case earnings in the year before random assignment totaled $6,185.
Iowa state AFDC and Temporary Assistance for Needy Families (TANF)
The FIP program was part of Iowa's welfare reform efforts beginning in 1993. This federal waiver program replaced the prior AFDC program and was administered by the Iowa Department of Human Services. The study took place in nine counties in Iowa. In the remaining counties, all welfare recipients were subject to the FIP provisions. Beginning in April 1997, all comparison group cases were also subject to FIP reform policies.
FIP was part of Iowa's welfare reform efforts that began in 1993. FIP had three main components: (1) Making Work Pay: earnings disregards and extended transitional child care; (2) Responsibility with Consequences: requirements for all able-bodied (nonexempt) FIP recipients to take part in employment and training activities, which included developing and signing a Family Investment Agreement (FIA) that specified the steps parents would take to achieve economic self-sufficiency, and participation in the Promoting Independence and Self Sufficiency through Employment, Job Opportunities and Basic Skills program, which provided education, employment (job search assistance, unpaid work experience, and monitoring), and training opportunities; and (3) Family Stability: fewer restrictions on FIP eligibility for families with more than one wage earner in the household.
The comparison group received AFDC benefits under pre-reform policies, which imposed more earnings restrictions (for the applicant and other adult household member) but less stringent requirements for participation in employment and training activities. In April 1997, all comparison group cases became subject to FIP policies.
If FIP recipients failed to sign an FIA or did not carry out the signed FIA, they were assigned to the Limited Benefit Plan, which temporarily reduced or eliminated the recipient family’s cash grant.
Individuals were subject to FIP while they received AFDC and TANF benefits. Beginning in April 1997, all comparison group cases were also subject to FIP policies.
Iowa Department of Human Services (Iowa AFDC and TANF agency) using federal AFDC funding.
The program took place in nine counties in Iowa, including Black Hawk, Clinton, Des Moines, Jackson, Jones, Linn, Polk, Pottawattamie, and Woodbury.
Physical health; Mental health; Housing; Nutrition; Financial assets; Parenting and co-parenting; Couple relationships; Family formation; Child wellbeing