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  • Individual Author: Cooper, Daniel
    Reference Type: Report
    Year: 2014

    One of the distinguishing features of the Great Recession and its aftermath has been the spike in the number of individuals experiencing long-duration unemployment spells, defined as lasting more than 26 weeks. This paper analyzes the effect of unemployment duration on individual's future earnings and other outcomes, such as homeownership and wealth, using data from the Panel Study of Income Dynamics (PSID). The results show a negative relationship between a worker's most recent unemployment spell and his or her current earnings. The earnings of displaced workers do not catch up to those of their nondisplaced counterparts for nearly 20 years. The effect of unemployment on earnings is even more substantial for workers unemployed 26 weeks or more. Unemployment spells also negatively impact future homeownership - this finding suggests that the consequences of the recent spike in unemployment duration could affect more than individuals' expected lifetime earnings. Given the costs of long-term unemployment, policies aimed at reducing the unemployment rate - such as the Federal Reserve...

    One of the distinguishing features of the Great Recession and its aftermath has been the spike in the number of individuals experiencing long-duration unemployment spells, defined as lasting more than 26 weeks. This paper analyzes the effect of unemployment duration on individual's future earnings and other outcomes, such as homeownership and wealth, using data from the Panel Study of Income Dynamics (PSID). The results show a negative relationship between a worker's most recent unemployment spell and his or her current earnings. The earnings of displaced workers do not catch up to those of their nondisplaced counterparts for nearly 20 years. The effect of unemployment on earnings is even more substantial for workers unemployed 26 weeks or more. Unemployment spells also negatively impact future homeownership - this finding suggests that the consequences of the recent spike in unemployment duration could affect more than individuals' expected lifetime earnings. Given the costs of long-term unemployment, policies aimed at reducing the unemployment rate - such as the Federal Reserve's quantitative easing program - could have the added benefit of limiting the negative consequences of long-duration unemployment through fostering faster re-employment. (author abstract)

  • Individual Author: Zaslow, Martha J. ; McGroder, Sharon M. ; Moore, Kristin A.
    Reference Type: Report
    Year: 2000

    As we seek to understand the effects on families of the 1996 welfare reform law, we can build on the foundation of a rigorous evaluation study focusing on the effects on families of welfare-to-work programs implemented under the previous welfare law, the Family Support Act of 1988. The National Evaluation of Welfare-to-Work Strategies (the NEWWS, funded by the U.S. Department of Health and Human Services and the U.S. Department of Education) is evaluating the impact of a set of welfare-to-work programs operated under "JOBS" (the Job Opportunities and Basic Skills Training Program). A pioneering feature of this national evaluation is that it simultaneously considers program impacts on adult economic outcomes and on the development and well-being of the children in the families.

    This summary report presents a summary of findings from one of a set of three complementary reports from the National Evaluation of Welfare-to-Work Strategies' two-year follow-up (with results from a further follow-up, completed five...

    As we seek to understand the effects on families of the 1996 welfare reform law, we can build on the foundation of a rigorous evaluation study focusing on the effects on families of welfare-to-work programs implemented under the previous welfare law, the Family Support Act of 1988. The National Evaluation of Welfare-to-Work Strategies (the NEWWS, funded by the U.S. Department of Health and Human Services and the U.S. Department of Education) is evaluating the impact of a set of welfare-to-work programs operated under "JOBS" (the Job Opportunities and Basic Skills Training Program). A pioneering feature of this national evaluation is that it simultaneously considers program impacts on adult economic outcomes and on the development and well-being of the children in the families.

    This summary report presents a summary of findings from one of a set of three complementary reports from the National Evaluation of Welfare-to-Work Strategies' two-year follow-up (with results from a further follow-up, completed five years after families enrolled, to be presented in the future). We focus in the present summary report on the findings related to impacts on children, reporting results from a special component of the evaluation, the Child Outcomes Study (see McGroder, Zaslow, Moore and LeMenestrel, 2000, for a detailed presentation of findings). This component of the evaluation focuses in depth on children's development and well-being for a sample of families with young (preschool-age) children at the start of the evaluation, drawn from three of the evaluation's seven research sites. A second report in this series focuses primarily on economic impacts in all seven of the evaluation's research sites, with a more limited examination of impacts on children of all ages (Freedman, Friedlander, Hamilton, Rock, Mitchell, Nudelman, Schweder, and Storto, 2000). A third report draws together findings on children from the in-depth look at young children in the Child Outcomes Study, and brief markers of well-being collected regarding children of all ages in families in the full evaluation sample (Hamilton, with Freedman and McGroder, 2000).

    The Child Outcomes Study of the National Evaluation of Welfare-to-Work Strategies examines the impacts on both the parental and child generations of two distinct approaches to welfare reform implemented as part of the federal JOBS Program: a labor force attachment approach (emphasizing a rapid transition to employment), and a human capital development approach (emphasizing a longer-term strategy of education and training in order to obtain a better job). These strategies are precursors of the welfare reform programs now being implemented under the 1996 welfare law, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). The labor force attachment approach under JOBS is especially germane because of its emphasis on moving clients quickly into employment, the clear priority of new policies. However, the human capital development approach may provide an informative model for states as caseloads drop, and those families remaining on welfare face more barriers to employment (such as low literacy or limited education).

    Although welfare policies were initiated many years ago with the aim of protecting children in poor families, most of the evaluation research concerning these policies has focused on adult economic outcomes. This is perhaps not surprising, given that the most clearly targeted outcomes of these programs have been economic. The Family Support Act explicitly stated as its goal the reduction of long-term welfare dependency. Further, this law did not call for services aimed directly at enhancing the development of children (such as early childhood educational intervention, or developmental screening); rather authorized services focused on increasing adult employment.

    Nevertheless, a mother's assignment to a welfare-to-work program has the potential to affect the development of children, for example, by affecting the material resources available within the family, and by affecting children's experiences of care both within and outside of the home. The Child Outcomes Study of the National Evaluation of Welfare-to-Work Strategies examines whether children can be affected by their mothers' assignment to a welfare-to-work program, how their development and well-being are affected (favorably or unfavorably), if at all, and in what ways any impacts on children come about.

    The Child Outcomes Study uses a rigorous experimental design. Two years after mothers were randomly assigned to one of the two JOBS welfare-to-work strategies or to a control group, outcomes for children (at that point between about 5 and 7 years of age) were examined. The children's cognitive development and academic achievement were measured through a combination of direct assessment (an assessment of the children's cognitive school readiness) and maternal report (for example, mothers' reports of academic problems). The children's behavioral and emotional adjustment were measured through maternal report (for example, using measures of the child's behavior problems and positive social behaviors). The children's health and safety were also measured through maternal report (for example, using an interview measure indicating whether the child has had an accident, injury or poisoning requiring emergency medical attention; an interview measure widely used in national surveys in which the mother indicates whether she sees the child's overall health as excellent, very good, good, fair, or poor). Validation work indicates that the global health rating reflects primarily physical health problems (Krause and Jay, 1994).In general, all measures selected for use in the Child Outcomes Study have demonstrated sufficient validity and reliability (Bracken, 1984; Polit, 1996; Zill, 1985; Peterson and ZILL, 1986)

    In addition to examining mean scores on measures of cognitive school readiness, problem and positive behavior, and overall health, we also examined program impacts on the proportion of children with extreme scores on these measures in the interest of ascertaining whether JOBS welfare-to-work programs changed the distribution of children's outcomes — for example, reducing the proportion at the "unfavorable" end and/or increasing the proportion at the "favorable" end — which is possible even if the programs had no impacts on mean scores. Thus, in some cases a single response to a survey question can give rise to two or more impacts (e.g., one relating to the mean and one relating to the distribution).

    The Child Outcomes Study was conducted in three sites: Atlanta, Georgia; Grand Rapids, Michigan; and Riverside, California. Families enrolled in the evaluation between September 1991 and January 1994. Data collection for the two-year follow-up was completed in January 1996, prior to the implementation of the new welfare law. Findings from this study must be seen in light of the fact that mothers were exempt from participation in JOBS welfare-to-work activities if they were needed at home to care for an ill or incapacitated family member, including a child. As a result, children with a health condition requiring such care were not included in the evaluation. The 1996 welfare law no longer provides an explicit exemption for a mother with an ill or incapacitated child.

    In this experimental evaluation, mothers randomly assigned to a control group in each of the study sites were eligible for all welfare benefits. However, they did not receive the special messages and case management of a JOBS program, they were not mandated to participate in JOBS program activities, and they did not have access to the particular work preparation activities through JOBS. Control group members were eligible for child care assistance, similar to that offered to program group members, if they were participating in work preparation activities in which they had enrolled on their own. (author abstract)

  • Individual Author: Enchautegui, Maria E.; Chien, Nina; Burgess, Kimberly; Ghertner, Robin
    Reference Type: Report
    Year: 2016

    This study used a rigorous difference-in-differences approach to examine the effect of child care policy on women's labor force participation. The study examined the effects of state-level spending, copayment rates, and income eligibility thresholds on the probability of employment and labor force participation by potentially eligible women (defined as women below 85% of state median income and with children ages 0 through 12). Data came from three sources that were merged together for the analyses: the Current Population Survey Annual Social and Economic Supplement (2003-2012); CCDF expenditures from ACF-696 data; and CCDF policy parameters from the CCDF State Policies Database (2003-2012). We found that higher spending by states on child care subsidies increased the probability of employment and of labor force participation by potentially eligible women. In real terms, if current CCDF expenditures were tripled, the number of women newly employed would be 652,000 (among women below 85 percent of SMI with children ages 0 to 12). Somewhat unexpectedly, higher copayment rates and...

    This study used a rigorous difference-in-differences approach to examine the effect of child care policy on women's labor force participation. The study examined the effects of state-level spending, copayment rates, and income eligibility thresholds on the probability of employment and labor force participation by potentially eligible women (defined as women below 85% of state median income and with children ages 0 through 12). Data came from three sources that were merged together for the analyses: the Current Population Survey Annual Social and Economic Supplement (2003-2012); CCDF expenditures from ACF-696 data; and CCDF policy parameters from the CCDF State Policies Database (2003-2012). We found that higher spending by states on child care subsidies increased the probability of employment and of labor force participation by potentially eligible women. In real terms, if current CCDF expenditures were tripled, the number of women newly employed would be 652,000 (among women below 85 percent of SMI with children ages 0 to 12). Somewhat unexpectedly, higher copayment rates and lower income eligibility thresholds were associated with higher probabilities of labor force participation, though these findings were not robust across subgroups. (Author abstract)

  • Individual Author: Bureau of Labor Statistics
    Reference Type: Dataset, Report
    Year: 2018

    From April to July 2018, the number of employed youth 16 to 24 years old increased by 2.0 million to 20.9 million, the U.S. Bureau of Labor Statistics reported today. This year, 55.0 percent of young people were employed in July, little changed from a year earlier. (The month of July typically is the summertime peak in youth employment.) The unemployment rate for youth was 9.2 percent in July, also little changed from July 2017. (Because this analysis focuses on the seasonal changes in youth employment and unemployment that occur each spring and summer, the data are not seasonally adjusted.) (Author introduction)

    From April to July 2018, the number of employed youth 16 to 24 years old increased by 2.0 million to 20.9 million, the U.S. Bureau of Labor Statistics reported today. This year, 55.0 percent of young people were employed in July, little changed from a year earlier. (The month of July typically is the summertime peak in youth employment.) The unemployment rate for youth was 9.2 percent in July, also little changed from July 2017. (Because this analysis focuses on the seasonal changes in youth employment and unemployment that occur each spring and summer, the data are not seasonally adjusted.) (Author introduction)

  • Individual Author: Young, Justin R. ; Mattingly, Marybeth J.
    Reference Type: Journal Article, Report
    Year: 2016

    The unemployment rate, a leading indicator of the nation’s economic health, has fallen steadily in the wake of the Great Recession of 2007–09. However, other indicators of labor force strength paint a more complex picture of how workers are faring economically. In this article, we use 1971–2014 data from the Current Population Survey to examine temporal changes in involuntary part-time work—an increasingly common type of underemployment. Our analysis identifies several shifts in involuntary part-time work, including high rates of such work among Hispanic workers since the late 1980s. While this form of underemployment grew substantially among all racial/ethnic groups during the Great Recession, it was especially prevalent among foreign-born Hispanics, in particular those without citizenship. Although our analyses of 2014 data suggest that educational attainment accounts for much of these racial/ethnic and nativity gaps, other factors—namely, job skill, industry of employment, and occupational composition—also help explain the observed differential rates of involuntary part-time...

    The unemployment rate, a leading indicator of the nation’s economic health, has fallen steadily in the wake of the Great Recession of 2007–09. However, other indicators of labor force strength paint a more complex picture of how workers are faring economically. In this article, we use 1971–2014 data from the Current Population Survey to examine temporal changes in involuntary part-time work—an increasingly common type of underemployment. Our analysis identifies several shifts in involuntary part-time work, including high rates of such work among Hispanic workers since the late 1980s. While this form of underemployment grew substantially among all racial/ethnic groups during the Great Recession, it was especially prevalent among foreign-born Hispanics, in particular those without citizenship. Although our analyses of 2014 data suggest that educational attainment accounts for much of these racial/ethnic and nativity gaps, other factors—namely, job skill, industry of employment, and occupational composition—also help explain the observed differential rates of involuntary part-time work. (Author abstract)

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