ABSTRACT

The humanitarian rationale for welfare reform-as opposed to the more punitive and stingy impulses that may actually have motivated it-is that work will lift poor women out of poverty while simultaneously inflating their self-esteem and hence their future value in the labor market. Thus, whatever the hassles involved in finding child care and transportation, the transition from welfare to work will end happily, in greater prosperity for all. Even without a downturn, the influx of a million former welfare recipients into the low-wage labor market could depress wages by as much as 11.9 percent, according to the Economic Policy Institute in Washington, D.C. According to the National Coalition for the Homeless, for example, in 1998 it took, on average nationwide, an hourly wage of $8.89 to afford a one-bedroom apartment, and the Preamble Center for Public Policy estimates that the odds against a typical welfare recipient's landing a job at such a "living wage" are about 97 to 1.