Do Welfare Sanctions Work? Measuring the Impacts of Sanctions on Economic Well-Being of Sanctioned TANF Recipients

Chi-Fang Wu, University of Wisconsin at Madison

Under Temporary Assistance for Needy Families (TANF) families are subject to greater work requirements, and the severity of sanctions for noncompliance has increased. However, little research has focused on the impacts of sanctions. Utilizing the longitudinal administrative and survey data for Wisconsin, we examine the impacts of sanctions on the economic well-being of welfare mothers. Because we have detailed administrative data on the timing and severity of sanctions, we are able to document the sensitivity of results to alternative measures of sanctions over time. Because we have data on all state TANF participants, we are able to exploit the county variation in sanction rates to help identify the causal effects of sanctions. Preliminary findings suggest that sanctions are associated with lower employment rates and earnings. Results also highlight the importance of the level, timing, and duration of sanctions, and long-term outcomes while measuring the impacts of sanctions.