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Activation from Income Support in the US

  • Chapter
Bringing the Jobless into Work?

There is good news from the United States. The labour market is at nearly full employment and the number of persons receiving social assistance has reached a historically low level. This favourable economic context supported the political will for enactment of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA)1 – signifying the “end of welfare as we know it.”

After decades of controversy over federal programmes for social assistance, the US Congress implemented a new activation concept, one containing a welfare-towork or Work-First approach while allowing wide discretion among the states in policy implementation. The aim was to reduce welfare dependency by helping welfare recipients leave welfare for work through supportive services and work requirements. The ultimate ambition of the reform was to convert the system from a presumption of state responsibility to one of individual responsibility. This posture regarding the government role for income security was implicit in other public programmes, and the 1996 welfare reforms replacing the Aid to Families with Dependent Children Program (AFDC) with the Temporary Assistance for Needy Families Program (TANF) brought social assistance into line with this principle.

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Abbreviations

ADC:

Aid to Dependent Children

ADCUF:

Aid to Dependent Children with an Unemployed Father

AFDC:

Aid to Families with Dependent Children

ATAA:

Alternate Trade Adjustment Assistance

CalWORKs:

California Work Opportunity and Responsibility to Kids

CCH:

Commerce Clearing House

CEA:

Council of Economic Advisors

CFR:

Code of Federal Regulations

DHHS:

US Department of Health and Human Services

DIME:

Denver Income Maintenance Experiment

DUA:

Disaster Unemployment Assistance

EITC:

Earned Income Tax Credit

ETA:

Employment and Training Administration

FAP:

Family Assistance Program

FLSA:

Fair Labor Standards Act

FR:

Federal Register

FSEB:

Federal-State Extended Benefits Program

FSEBA:

Federal-State Extended Benefits Act of 1970

FUTA:

Federal Unemployment Tax Act

GAIN:

Greater Avenues to Independence

GAO:

General Accounting Office (now General Accountability Office)

GDP:

Gross Domestic Product

GED:

High School Graduate Equivalency Diploma

HHS:

US Department of Health and Human Services

IDA:

Individual Development Accounts

IRC:

Internal Revenue Code

JSA:

Job Search Assistance

MEED:

Minnesota Employment and Economic Development program

MOE:

Maintenance of Effort

NAFTA:

North American Free Trade Act

NIT:

Negative Income Tax

NJTC:

New Jobs Tax Credit

NLS:

National Longitudinal Survey

OECD:

Organization for Economic Cooperation and Development

OFA:

Office of Family Assistance in HHS

OJT:

On-the-Job Training

OWS:

Office of Workforce Security in the USDOL

PL:

Public Law

PRWORA:

Personal Responsibility and Work Opportunity Act of 1996

SC:

US Supreme Court

SEA:

Self Employment Assistance

SEITC:

State Earned Income Tax Credit

SFAG:

State Family Assistance Grant under TANF

SIME:

Seattle Income Maintenance Experiment

SSA:

Social Security Act of 1935

SSP:

Separate State Program

TAA:

Trade Adjustment Assistance

TANF:

Temporary Assistance to Needy Families

TEUC:

Temporary Extended Unemployment Compensation

TJTC:

Targeted Jobs Tax Credit

TRA:

Trade Readjustment Allowances

UC:

Unemployment Compensation

UI:

Unemployment Insurance

US:

United States

USA:

United States of America

USC:

United States Code

USD:

United States Dollar

USDOL:

United States Department of Labor

W2:

Wisconsin Works Program

WARN:

Worker Adjustment and Retraining Notification Act of 1988

WDB:

Workforce Development Board

WIA:

Workforce Investment Act of 1998

WIN:

Work Incentive Program

WOTC:

Work Opportunity Tax Credit

WPRS:

Worker Profiling and Reemployment Services

WtW:

Welfare to Work

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Authors and Affiliations

  1. Max Planck Institute for Foreign and International Social Law in Munich, Germany

    B. Quade PhD

  2. W.E. Upjohn Institute for Employment Research, Kalamazoo, Michigan

    C. J. O’Leary (Senior economist)

  3. University of Stellenbosch, South Africa

    O. Dupper (Professor of Labour and Social Security Law, Co-director)

  4. Centre for International and Comparative Labour and Social Security Law (CICLASS), South Africa

    O. Dupper (Professor of Labour and Social Security Law, Co-director)

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  1. Institute for the Study of Labor (IZA), Schaumburg-Lippe-Str. 5-9, 53113, Bonn, Germany

    Werner Eichhorst

  2. Max Planck Institute (MPI) for Foreign and International Social Law, Amalienstr. 33, 80799, München, Germany

    Otto Kaufmann

  3. Institute for Employment Research (IAB), Regensburger Straße 104, 90478, Nürnberg, Germany

    Regina Konle-Seidl

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Quade, B., O’Leary, C.J., Dupper, O. (2008). Activation from Income Support in the US. In: Eichhorst, W., Kaufmann, O., Konle-Seidl, R. (eds) Bringing the Jobless into Work?. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77435-8_9

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