Recent research suggests both TANF and state-provided paid maternity leave are sources of financial support for low-income mothers in the period surrounding a birth. A burgeoning line of research suggests that TANF serves as a de facto paid family leave program for low-income new mothers, providing maternity support for time off of work. A parallel line of research suggests that poor new mothers may substitute publically provided paid maternity leave policies (temporary disability insurance (TDI) and/or paid family leave (PFL) programs) for TANF, when states provide this option. Research has found that while substituting paid leave programs for cash welfare may result in cost savings for states such substitutions may also result in fewer resources for low-income, new-mother families, particularly those with unstable work histories. Prior research, however, does not investigate how TANF and/or state-provided paid leave programs impact the material wellbeing of low-income families in the period surrounding birth.

To build knowledge in this area, we examine the role of state-level TANF generosity (time limits, length of work exemptions for new mothers, eligibility of pregnant women, diversion programs, and average benefit levels) and paid maternity leave provisions in predicting TANF use and material hardship (difficultly paying expenses, utilities, and rent/mortgage) in the period surrounding birth. 

We pool 1996 through 2008 panels of the Survey of Income and Program Participation (SIPP).  SIPP provides a large, nationally representative sample, monthly TANF participation data, measures of material hardship, and the ability to observe a family before and after a birth. We create state-year policy variables drawing on the Urban Institute’s Welfare Rules Database. The sample includes mothers with sufficient pre- and post-birth observations in households below 200% of the FPL (N = 2,289).

We estimate a series of logistics regressions to determine the association between state policy characteristics and (1) the probability of TANF enrollment in the first three months post-birth, and the probability of experiencing difficulty in paying: (2) rent; (3) essential expenses; and (4) utilities in the year following birth. The primary covariates are measures of TANF generosity and an indicator for if the state had a TDI/PFL program in the year of the focal birth. We control for individual-level characteristics including work history, income, age, race, marital status, and education; household characteristics; and state economic characteristics. Initial analyses suggest a significant association between measures of TANF generosity and access to paid maternity leave through TDI and an increased probability of TANF participation and lower likelihood of material hardship after a birth.

PhD student author, Alexandra Stanczyk, will present initial results from this study at the 2014 Welfare Research and Evaluation Conference. The 2014 APPAM meeting will be the first conference where we will present final results. Our study informs researchers and administrators about how the package of state-level policies serving low-income new mothers impacts family resources and wellbeing.