New research shows that the success of Bill Clinton’s landmark reform came at a price
print icon AS THE ROSTER of Democratic candidates for the 2020 presidential elections grows, plans for welfare reform proliferate alongside it. Senator Kamala Harris of California, for example, has proposed a federal cash transfer for some low-income families. Ideas like this build on growing evidence that the last big reform of welfare—the 1996 Personal Responsibility and Work Opportunity Reconciliation Act—failed to fully deliver on its promise.
After 1996, the number of extreme-poor American households living on a cash income of less than $2 per day per person climbed, reaching 1.65m households in 2011. In a new paper , Dhaval Dave, an economist, and his colleagues examine the effects of the reform on the “culture of poverty”—the idea that “welfare leads to an intergenerational cycle of irresponsible behaviour"—by looking at the social behaviour of the children of low-skilled single mothers.
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