Welfare reform and the subjective well being of single mothers
Although a large body of research examines the impact of welfare reform, there remains considerable uncertainty as to whether single mothers' well being improved in the wake of these policy changes. Using unique data from the DDB Worldwide Communications Life StyleTM survey, this paper exploits a large battery of survey questions on self reported life satisfaction and physical and mental health to study the impact of welfare reform on the subjective well being of single mothers. The identification strategy relies on a difference in differences framework to estimate intent to treat effects for the welfare waiver and TANF periods. Results indicate that the bundle of TANF reforms had mostly positive effects on single mothers' subjective well being. These women experienced an increase in life satisfaction, greater optimism about the future, and more financial satisfaction. Furthermore, these improvements did not come at a cost of reducing mental and physical health. Welfare waivers, in contrast, had largely neutral effects on well being. I provide indirect evidence that the increase in single mothers' employment after welfare reform can plausibly explain the gains in subjective well being.