Indicators of Welfare Dependence: Indicators 2 &3

INDICATOR 2. DEPENDENCE TRANSITIONS

Whereas other indicators (Indicator 1a) illustrate the depth of dependence in a single year, this indicator reflects changes in the level of dependence over two years.

Light usage is some receipt up to 25 percent of total income from means-tested assistance in a year and heavy usage is greater than 50 percent of total income.
Figure IND 2 shows that for almost every category of recipients, a larger percentage of households became less dependent (moved from heavy to light usage of means-tested assistance) than more dependent (moved from light to heavy usage).
Similar percentages of non-Hispanic whites and non-Hispanic blacks (2 percent) made the transition from light (some receipt up to 25 percent of total income) to heavy (50 percent or more of total income) usage of means-tested assistance programs. The percentage of Hispanics (6 percent) that moved from light to heavy usage of means-tested assistance programs was significantly higher.
A somewhat higher percentage of women than men moved to heavy usage (4 percent compared to 2 percent), yet, nearly identical percentages of women and men (6 percent) moved from heavy to light usage over the same time period.

Table IND 2. Changes in the Percent of Income from Means-Tested Assistance from 1992 to 1993

	From Light to Heavy Usage	From Heavy to Light Usage

All Recipients	2.9	5.5

Racial Categories
Non-Hispanic White	2.1	7.7
Non-Hispanic Black	2.4	3.6
Hispanic	5.6	2.9

Age Categories
Children Age 0 - 5	5.4	6.2
Children Age 6 - 10	3.3	5.0
Children Age 11 - 15	3.5	4.2

Women Age 16 - 64	3.5	5.9
Men Age 16 - 64	1.7	6.3
Adults Age 65 and over	0.3	2.2

Note: Light usage is some receipt up to 25 percent (but greater than 0 percent) of total income from means-tested assistance in a year and heavy usage is greater than 50 percent of total income from means-tested assistance in a year. Means-tested assistance includes AFDC, Food Stamps and SSI. While only affecting a small number of cases, general assistance income is included under AFDC.

Source: Unpublished data from the SIPP, 1992 panel.

INDICATOR 3. DEPENDENCE SPELL DURATION

In contrast to the indicator on duration of spells of means-tested assistance (Indicator 5), this indicator of dependence spell duration combines information on spells of receipt of means-tested assistance and paid employment.

Forty percent of first AFDC spells with no employment lasted a total of 1 to 3 months.
Over two-thirds (70 percent) of first AFDC spells with no employment ended within a year.
Sixteen percent of first AFDC spells with no employment lasted 20 or more months.

Table IND 3. Duration of First Spells that Combine AFDC Receipt and No Employment, 1983 - 1989

Percent with Spells that Lasted:

1 - 3 Months 41%

4 - 11 Months 29%

12 - 19 Months 14%

20 or More Months 16%

100%

Note: Household heads and wives only.

Source: Unpublished data from the PSID, 1984 - 1992.

1 - 3 Months	41%
4 - 11 Months	29%
12 - 19 Months	14%
20 or More Months	16%
	100%