Differences in TANF Participation for Housing-Insecure Families during the Great Recession

Background and Purpose

Lack of an appropriate safety net is often cited as a major cause of family homelessness. However, there is little empirical research on the relationship between housing security and safety net programs. Evidence shows that homeless families generally face increased barriers to social services. At the same time, there is evidence that current safety net programs are unable to respond to economic factors; these programs were especially unresponsive during the recent recession. During this same period, rates of family homelessness quickly increased. As homelessness rates continue to rise, it is crucial to understand the relationship between housing security and safety net program participation.

This study answered the research question: during the great recession, were housing-insecure families accessing TANF at comparable rates to low-income stably housed families?

Methods

This study utilized data from the year nine wave of the Fragile Families and Child Wellbeing study, collected between 2007 and 2010. Only households that fall below the 200% poverty level were included.

Mothers were classified as homeless (n=66), doubled-up (n=83), or stably housed (n=1244). Mothers were classified as homeless if they had ever been homeless in the last four years. Dependent variables include receipt of TANF benefits within the last year, amount of benefits received, and the total number of months benefits were received.

Chi-square tests measured differences in receipt of TANF benefits within the previous year. One-way ANOVA measured differences in the amount received and the total number of months benefits were received. Additionally, linear regression was used to control for income in the relationship between housing status and amount received.  

Results

Chi-Squared tests showed significant differences in rates of receiving TANF benefits within the last twelve months, χ²(2, n=1391) = 18.604, p=.000. Stably housed families were less likely to have received benefits than stably housed families, χ²(1 1308, n=1308) = 17.390, p=.000. No other significant differences were found.  However, only 40% of homeless families had received income from TANF.

One-way ANOVA showed that in the last month they received TANF, homeless families received more income from TANF than stably housed families, F(2, 1390) = 3.08, p=.046. Post-hoc tests revealed that the only significant differences were between families that had experienced homelessness and stably housed families. However, in a regression which controlled for income, this relationship was no longer significant, b=40.96, t(1392) = 1.866, p=.062.

There was no significant difference between the number of months benefits were received for families that had been homeless, doubled-up families, and those that were stably housed.

Conclusions and Implications

Results indicate that during the great recession, homeless families accessed TANF at similar or higher rates than stably housed families, yet many families who experienced homelessness did not receive these benefits. Findings support calls for policies which increase access to TANF and other welfare programs, and increase the amount of benefits received so that housing becomes affordable. Further research examining the role of sanctions and time limits, factors limiting program participation, and the impact of TANF receipt for homeless families is needed.