Welfare Reform and the Quality of Young Children's Home Environments

Abstract

Abstract This study investigates the effects of welfare reform—a major policy shift in the United States that increased low-income mothers' employment and reliance on earnings instead of cash assistance—on the quality of the home environments mothers provide for their preschool-age children. Using empirical methods designed to identify plausibly causal effects, we estimate the effects of welfare reform on validated survey and observational measures of maternal behaviors that support children's cognitive skills and emotional adjustment and the material goods that parents purchase to stimulate their children's skill development. The results suggest that welfare reform did not affect the amount of time and material resources mothers devoted to cognitively stimulating activities with their young children. However, it significantly decreased emotional support provision scores, by approximately 0.3–0.4 standard deviations. The effects appear to be stronger for mothers with lower human capital. The findings provide evidence that welfare reform came at a cost to children in the form of lower quality parenting. They also underscore the importance of considering quality, and not just quantity, in assessing the effects of maternal work-incentive policies on parenting and children's home environments.