The economic self-sufficiency of Wisconsin's former foster youth
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Transcript of The economic self-sufficiency of Wisconsin's former foster youth
27 (2005) 1085ndash1118
wwwelseviercomlocatechildyouth
The economic self-sufficiency of Wisconsinrsquos
former foster youth
Amy DworskyT
Chapin Hall Center for Children University of Chicago 1313 East 60th Street Chicago
Illinois 60637 United States
Received 6 November 2004 received in revised form 19 December 2004 accepted 22 December 2004
Available online 17 February 2005
Abstract
This study uses administrative data to examine the self-sufficiency of 8511 former foster youth
who were discharged from Wisconsinrsquos out-of-home care system between 1992 and 1998 and were
at least 16 years old at the time they were discharged Three indicators of self-sufficiency were
measured employment earnings and public assistance receipt The youth were followed from the
quarter in which they were discharged through the fourth quarter of 2000 Most were employed in at
least one of the first eight quarters after their discharge but relatively few had earnings in all eight
Quarterly earnings increased over time but remained very low Earnings were still below the poverty
threshold even eight years post-discharge Nearly one fifth of the youth received AFDCTANF cash
assistance in at least one of their first eight quarters after their discharge and nearly one third
received food stamps Implementation of welfare reform was associated with a reduction in public
assistance receipt although other economic factors are also likely to have contributed to this
downward trend Relationships between these outcome measures and both the demographic
characteristics and out-of-home care experiences of these former foster youth were examined using
multivariate statistical techniques The policy and practice implications of the findings are discussed
D 2005 Elsevier Ltd All rights reserved
Keywords Economic self-sufficiency Former foster youth Wisconsin
0190-7409$ -
doi101016j
T Tel +1 77
E-mail add
Children and Youth Services Review
see front matter D 2005 Elsevier Ltd All rights reserved
childyouth200412032
3 256 5164
ress adworskychapinhallorg
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181086
1 Introduction
Approximately 20000 foster youth bage outQ of care each year (US Department of
Health and Human Services 1999) These foster youth include both those who entered as
young children and grew up in care as well as those who did not enter care until adolescence
In fact youth who entered care after their thirteenth birthday comprise a majority of those
who eventually age out (US Department of Health and Human Services 2002)1
Regardless of the age at which they entered care the transition to independent young
adulthood is not an easy one No longer wards of the state yet unable to turn to their
parents or other family members for financial andor emotional support many of these
foster youth must make the transition to young adulthood largely on their own Nor can
they count on the state for continuing support once they have been discharged from
care2
Several studies have examined the outcomes of this transition by interviewing samples
of foster youth after they aged out Although such studies are relatively few in number
their findings are consistent as well as troubling Not only does this research suggest that
former foster youth are likely to experience problems across a variety of domains but also
that they are often not prepared to live independently as self-sufficient young adults
According to these studies many foster youth do not graduate from high school before
or after they age out (Barth 1990 Cook Fleishman amp Grimes 1991 Courtney Piliavin
Grogan-Kaylor amp Nesmith 2001 Festinger 1983 Jones amp Moses 1984) When they are
employed their earnings tend to be low (Barth 1990 Cook et al 1991 Courtney et al
2001 Festinger 1983) It is not uncommon for former foster youth to receive means-tested
welfare benefits such as AFDCTANF food stamps andor Medicaid (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) or to depend on
less formal assistance from friends or family (Cook et al 1991 Courtney et al 2001
Jones amp Moses 1984) Finally these studies indicate that former foster youth are at high
risk of housing instability and even homelessness (Barth 1990 Cook et al 1991
Courtney et al 2001 Festinger 1983)
Unfortunately this research also suffers from two major limitations First only one of
the aforementioned studies (ie Courtney et al 2001) involved former foster youth who
had been in care after the federal Title IV-E Independent Living Program was fully
implemented (Courtney amp Barth 1996 Courtney et al 2001 McDonald Allen
Westerfelt amp Piliavin 1996)3 Second most of the studies have methodological problems
including small non-random samples and sample attrition (Courtney et al 2001
Maluccio amp Fein 1985 McDonald et al 1996) that raise questions about the validity and
generalizability of their results
1 Forty-five states and the District of Columbia provided sufficient data to examine whether foster youth who
aged out of care had entered care before or after their thirteenth birthday (US Department of Health and Human
Services 2002) Wisconsin which was among those 45 states reported that 85 of the foster youth who aged out
of care in 1999 were at least 13 years old when they entered care2 Recent changes in federal legislation have the potential to increase the availability of after-care services for
former foster youth These changes are discussed below3 Even the study by Cook et al which was ostensibly an evaluation of the Title IV-E Independent Living
Program involved foster youth who were discharged from care just as that program was being implemented
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1087
One way to avoid some of these methodological problems is to use administrative
data4 Because this approach is far less expensive and time-consuming than conducting
interviews sample size is usually not an issue when administrative data are used
Administrative data are also conducive to following former foster youth over time
without significant sample attrition Such an approach would also be consistent with the
growing use of administrative data in other child welfare research on out-of-home care5
The primary drawback of this approach is that administrative data are collected to meet
accountability and internal monitoring needs and hence may be less than ideal for
answering questions of interest to researchers (Courtney amp Collins 1994 Goerge
1997)
An early example of this approach was study of public assistance receipt among
youth discharged to independent living from New York Cityrsquos child welfare system
Pettiford (1981) compared the September 1980 public assistance rolls for both AFDC
and Home Relief cases in New York City to a list of all New York City foster youth
discharged to independent living between June 1979 and June 1980 in order to estimate
the percentage of former foster youth who had received public assistance since their
discharge from care6
More recently researchers at Chapin Hall Center for Children examined labor market
outcomes of foster youth from California Illinois and South Carolina who aged out of
care during the year they turned 18 (Goerge et al 2002) The study covered a period of
13 quarters the four quarters prior to their 18th birthday the quarter in which they
turned 18 and the eight quarters following their 18th birthday No more than 45 of the
foster youth in any of the three states had earnings in a given quarter while between
14 and 30 had no earnings in any of the 13 quarters Mean quarterly earnings rose
approximately $500 over the 13 quarters but remained very low (ie $1089ndash1364) The
researchers also found that these foster youth were more likely to have been employed
but earned significantly less than foster youth who had been reunified within four years
of their 18th birthday7
The purpose of this study is to examine the self-sufficiency of former foster youth
who were at least 16 years old when they were discharged from Wisconsinrsquos out-of-
home care system Although it is similar to the Chapin Hall study in its exclusive
reliance on administrative data it differs from that study in two important respects First
the sample includes former foster youth who experienced discharge outcomes other than
4 Administrative records have sometimes been used to identify the sample of youth to be interviewed or to
obtain case history information such as reason for and type of out-of-home care placement5 For example researchers have used administrative data to study foster care exits and re-entries (eg Courtney
1994 1995 Courtney Piliavin amp Wright 1997 Goerge 1990 Wulczyn 1991) to compare kinship and non-
relative foster care (eg Barth Courtney Berrick amp Albert 1994 Courtney amp Needell 1997 Testa 1997) and
to examine the relationship between race and length of stay in care (eg Goerge 1990 McMurtry amp Lie 1992)6 A major limitation of this study is that former foster youth who received public assistance elsewhere in New
York or in other states were not counted as recipients7 Illinois youth who aged out of care were no more likely to have been employed than Illinois youth who were
reunified when a multivariate model was used
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181088
aging out and reunification (ie running away institutionalization relative placement or
adoption) Second it looks not only at labor market outcomes but also public assistance
receipt
2 Methodology
This research is based on state administrative data from three different sources
21 Human services reporting system (HSRS)
This state-wide human services data collection system contains a Substitute Care
Module that provides individual level data about all of the children who are placed in
Wisconsinrsquos out-of-home care system including information about their demographic
characteristics (eg gender birth date raceethnicity) and out-of-home care experiences
(eg entry and exit dates placement type discharge outcome)
22 Client assistance and re-employment support (CARES)8
This state-wide public assistance data collection system contains client-specific
information about program participation and benefits provided to low-income individuals
and families including AFDCTANF food stamps and child care assistance9
23 Unemployment insurance (UI) wage reporting system
This database contains quarterly wage records for all employees in Wisconsin who are
covered under the statersquos unemployment insurance laws10 Every quarter employers are
mandated to report the total amount of wages paid to each employee in a covered job
Each record contains the employeersquos social security number the employerrsquos identification
number the quarter in which the wages were paid and the total amount of wages paid
during that quarter
24 Sample selection
The Substitute Care Module of the Human Services Reporting System (HSRS) was
used to identify foster youth who were discharged from Wisconsinrsquos out-of-home care
system between January 1 1992 and December 31 1998 and who were at least 16 years
8 Prior to 1995 the statersquos public assistance data collection system was the Computer Reporting Network
(CRN)9 Because CARES tracks Medicaid eligibility but not Medicaid claims it provides no information about the
receipt of Medicaid benefits10 Approximately 94 of Wisconsin workers are engaged in covered employment (Terry Ludeman Wisconsin
Department of Workforce Development personal communication June 10 2002)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1089
old on the date of their discharge A total of 10183 foster youth met these selection
criteria11 However the results presented below include only the 8511 foster youth or
787 of the total sample for whom valid social security numbers could be identified
This restriction was necessary because social security numbers were used to link the HSRS
data to both the CARES and UI data12
Because the CARES and UI data were only available through the end of calendar year
2000 the observation period ranged from as few as eight quarters for those who were
discharged in the fourth quarter of 1998 to as many as 36 quarters for those who were
discharged in the first quarter of 1992 Thus the analyses were limited to the first eight
post-discharge quartersmdashie the maximum number of quarters for which all of the former
foster youth were observed13 All of the dollar values reported below were converted to
2000 dollars using the Consumer Price Index
3 Demographic characteristics and out-of-home care experiences of former foster
youth
The demographic characteristics and out-of-home care experiences of the 8511 former
foster youth whose outcomes were examined are summarized in Table 1
This sample of former foster youth is predominantly White and males outnumber
females by a ratio of nearly three to two Although Milwaukee County accounted for
a disproportionate share of Wisconsinrsquos out-of-home care caseload throughout the
1990rsquos only 20 of these former foster youth had been in Milwaukee Countyrsquos
care14
The mean age at most recent entry was between 15 and 16 years old but the
distribution was highly skewed Only 26 were 12 years old or younger when they last
entered care compared to 896 who were at least 15 years old15 This most recent out-of-
home care entry was also the first entry for a majority of these former foster youth Forty-
12 The implications of this restriction are discussed below13 The quarter in which foster youth were discharged was treated as the first post-discharge quarter if the
discharge date was between the first day of the first month and the fifteenth day of the second month in that
quarter The quarter in which foster youth were discharged was ignored and the following quarter was treated as
the first post-discharge quarter if the discharge date was between the sixteenth day of the second month and the
last day of the third month in that quarter Discharge cohort refers to all of the former foster youth who had been
discharged in a particular year14 In 1999 Milwaukee County accounted for 173 of Wisconsin residents under age 18 (US Census Bureau
2000) but was responsible for 553 of the statersquos out-of-home care caseload on December 31st of that year
(Courtney amp Dworsky 2001)15 Although young children ages birth to five years old account for an increasing percentage of the children
entering out-of-home care (Goerge Wulczyn amp Harden 1997) 29 of the children who entered care in 1999
were ages 11ndash15 and 11 were ages 16ndash18 (US Department of Health and Human Services 2002) In
Wisconsin adolescents accounted for an even higher percentage of the 1999 entry cohort 411 were 11ndash15
years old and 153 were 16ndash18 years old (US Department of Health and Human Services 2002)
11 This does not include the 21 foster youth who were transferred to a private child welfare agency or the seven
foster youth who died while in out-of-home care
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181086
1 Introduction
Approximately 20000 foster youth bage outQ of care each year (US Department of
Health and Human Services 1999) These foster youth include both those who entered as
young children and grew up in care as well as those who did not enter care until adolescence
In fact youth who entered care after their thirteenth birthday comprise a majority of those
who eventually age out (US Department of Health and Human Services 2002)1
Regardless of the age at which they entered care the transition to independent young
adulthood is not an easy one No longer wards of the state yet unable to turn to their
parents or other family members for financial andor emotional support many of these
foster youth must make the transition to young adulthood largely on their own Nor can
they count on the state for continuing support once they have been discharged from
care2
Several studies have examined the outcomes of this transition by interviewing samples
of foster youth after they aged out Although such studies are relatively few in number
their findings are consistent as well as troubling Not only does this research suggest that
former foster youth are likely to experience problems across a variety of domains but also
that they are often not prepared to live independently as self-sufficient young adults
According to these studies many foster youth do not graduate from high school before
or after they age out (Barth 1990 Cook Fleishman amp Grimes 1991 Courtney Piliavin
Grogan-Kaylor amp Nesmith 2001 Festinger 1983 Jones amp Moses 1984) When they are
employed their earnings tend to be low (Barth 1990 Cook et al 1991 Courtney et al
2001 Festinger 1983) It is not uncommon for former foster youth to receive means-tested
welfare benefits such as AFDCTANF food stamps andor Medicaid (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) or to depend on
less formal assistance from friends or family (Cook et al 1991 Courtney et al 2001
Jones amp Moses 1984) Finally these studies indicate that former foster youth are at high
risk of housing instability and even homelessness (Barth 1990 Cook et al 1991
Courtney et al 2001 Festinger 1983)
Unfortunately this research also suffers from two major limitations First only one of
the aforementioned studies (ie Courtney et al 2001) involved former foster youth who
had been in care after the federal Title IV-E Independent Living Program was fully
implemented (Courtney amp Barth 1996 Courtney et al 2001 McDonald Allen
Westerfelt amp Piliavin 1996)3 Second most of the studies have methodological problems
including small non-random samples and sample attrition (Courtney et al 2001
Maluccio amp Fein 1985 McDonald et al 1996) that raise questions about the validity and
generalizability of their results
1 Forty-five states and the District of Columbia provided sufficient data to examine whether foster youth who
aged out of care had entered care before or after their thirteenth birthday (US Department of Health and Human
Services 2002) Wisconsin which was among those 45 states reported that 85 of the foster youth who aged out
of care in 1999 were at least 13 years old when they entered care2 Recent changes in federal legislation have the potential to increase the availability of after-care services for
former foster youth These changes are discussed below3 Even the study by Cook et al which was ostensibly an evaluation of the Title IV-E Independent Living
Program involved foster youth who were discharged from care just as that program was being implemented
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1087
One way to avoid some of these methodological problems is to use administrative
data4 Because this approach is far less expensive and time-consuming than conducting
interviews sample size is usually not an issue when administrative data are used
Administrative data are also conducive to following former foster youth over time
without significant sample attrition Such an approach would also be consistent with the
growing use of administrative data in other child welfare research on out-of-home care5
The primary drawback of this approach is that administrative data are collected to meet
accountability and internal monitoring needs and hence may be less than ideal for
answering questions of interest to researchers (Courtney amp Collins 1994 Goerge
1997)
An early example of this approach was study of public assistance receipt among
youth discharged to independent living from New York Cityrsquos child welfare system
Pettiford (1981) compared the September 1980 public assistance rolls for both AFDC
and Home Relief cases in New York City to a list of all New York City foster youth
discharged to independent living between June 1979 and June 1980 in order to estimate
the percentage of former foster youth who had received public assistance since their
discharge from care6
More recently researchers at Chapin Hall Center for Children examined labor market
outcomes of foster youth from California Illinois and South Carolina who aged out of
care during the year they turned 18 (Goerge et al 2002) The study covered a period of
13 quarters the four quarters prior to their 18th birthday the quarter in which they
turned 18 and the eight quarters following their 18th birthday No more than 45 of the
foster youth in any of the three states had earnings in a given quarter while between
14 and 30 had no earnings in any of the 13 quarters Mean quarterly earnings rose
approximately $500 over the 13 quarters but remained very low (ie $1089ndash1364) The
researchers also found that these foster youth were more likely to have been employed
but earned significantly less than foster youth who had been reunified within four years
of their 18th birthday7
The purpose of this study is to examine the self-sufficiency of former foster youth
who were at least 16 years old when they were discharged from Wisconsinrsquos out-of-
home care system Although it is similar to the Chapin Hall study in its exclusive
reliance on administrative data it differs from that study in two important respects First
the sample includes former foster youth who experienced discharge outcomes other than
4 Administrative records have sometimes been used to identify the sample of youth to be interviewed or to
obtain case history information such as reason for and type of out-of-home care placement5 For example researchers have used administrative data to study foster care exits and re-entries (eg Courtney
1994 1995 Courtney Piliavin amp Wright 1997 Goerge 1990 Wulczyn 1991) to compare kinship and non-
relative foster care (eg Barth Courtney Berrick amp Albert 1994 Courtney amp Needell 1997 Testa 1997) and
to examine the relationship between race and length of stay in care (eg Goerge 1990 McMurtry amp Lie 1992)6 A major limitation of this study is that former foster youth who received public assistance elsewhere in New
York or in other states were not counted as recipients7 Illinois youth who aged out of care were no more likely to have been employed than Illinois youth who were
reunified when a multivariate model was used
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181088
aging out and reunification (ie running away institutionalization relative placement or
adoption) Second it looks not only at labor market outcomes but also public assistance
receipt
2 Methodology
This research is based on state administrative data from three different sources
21 Human services reporting system (HSRS)
This state-wide human services data collection system contains a Substitute Care
Module that provides individual level data about all of the children who are placed in
Wisconsinrsquos out-of-home care system including information about their demographic
characteristics (eg gender birth date raceethnicity) and out-of-home care experiences
(eg entry and exit dates placement type discharge outcome)
22 Client assistance and re-employment support (CARES)8
This state-wide public assistance data collection system contains client-specific
information about program participation and benefits provided to low-income individuals
and families including AFDCTANF food stamps and child care assistance9
23 Unemployment insurance (UI) wage reporting system
This database contains quarterly wage records for all employees in Wisconsin who are
covered under the statersquos unemployment insurance laws10 Every quarter employers are
mandated to report the total amount of wages paid to each employee in a covered job
Each record contains the employeersquos social security number the employerrsquos identification
number the quarter in which the wages were paid and the total amount of wages paid
during that quarter
24 Sample selection
The Substitute Care Module of the Human Services Reporting System (HSRS) was
used to identify foster youth who were discharged from Wisconsinrsquos out-of-home care
system between January 1 1992 and December 31 1998 and who were at least 16 years
8 Prior to 1995 the statersquos public assistance data collection system was the Computer Reporting Network
(CRN)9 Because CARES tracks Medicaid eligibility but not Medicaid claims it provides no information about the
receipt of Medicaid benefits10 Approximately 94 of Wisconsin workers are engaged in covered employment (Terry Ludeman Wisconsin
Department of Workforce Development personal communication June 10 2002)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1089
old on the date of their discharge A total of 10183 foster youth met these selection
criteria11 However the results presented below include only the 8511 foster youth or
787 of the total sample for whom valid social security numbers could be identified
This restriction was necessary because social security numbers were used to link the HSRS
data to both the CARES and UI data12
Because the CARES and UI data were only available through the end of calendar year
2000 the observation period ranged from as few as eight quarters for those who were
discharged in the fourth quarter of 1998 to as many as 36 quarters for those who were
discharged in the first quarter of 1992 Thus the analyses were limited to the first eight
post-discharge quartersmdashie the maximum number of quarters for which all of the former
foster youth were observed13 All of the dollar values reported below were converted to
2000 dollars using the Consumer Price Index
3 Demographic characteristics and out-of-home care experiences of former foster
youth
The demographic characteristics and out-of-home care experiences of the 8511 former
foster youth whose outcomes were examined are summarized in Table 1
This sample of former foster youth is predominantly White and males outnumber
females by a ratio of nearly three to two Although Milwaukee County accounted for
a disproportionate share of Wisconsinrsquos out-of-home care caseload throughout the
1990rsquos only 20 of these former foster youth had been in Milwaukee Countyrsquos
care14
The mean age at most recent entry was between 15 and 16 years old but the
distribution was highly skewed Only 26 were 12 years old or younger when they last
entered care compared to 896 who were at least 15 years old15 This most recent out-of-
home care entry was also the first entry for a majority of these former foster youth Forty-
12 The implications of this restriction are discussed below13 The quarter in which foster youth were discharged was treated as the first post-discharge quarter if the
discharge date was between the first day of the first month and the fifteenth day of the second month in that
quarter The quarter in which foster youth were discharged was ignored and the following quarter was treated as
the first post-discharge quarter if the discharge date was between the sixteenth day of the second month and the
last day of the third month in that quarter Discharge cohort refers to all of the former foster youth who had been
discharged in a particular year14 In 1999 Milwaukee County accounted for 173 of Wisconsin residents under age 18 (US Census Bureau
2000) but was responsible for 553 of the statersquos out-of-home care caseload on December 31st of that year
(Courtney amp Dworsky 2001)15 Although young children ages birth to five years old account for an increasing percentage of the children
entering out-of-home care (Goerge Wulczyn amp Harden 1997) 29 of the children who entered care in 1999
were ages 11ndash15 and 11 were ages 16ndash18 (US Department of Health and Human Services 2002) In
Wisconsin adolescents accounted for an even higher percentage of the 1999 entry cohort 411 were 11ndash15
years old and 153 were 16ndash18 years old (US Department of Health and Human Services 2002)
11 This does not include the 21 foster youth who were transferred to a private child welfare agency or the seven
foster youth who died while in out-of-home care
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1087
One way to avoid some of these methodological problems is to use administrative
data4 Because this approach is far less expensive and time-consuming than conducting
interviews sample size is usually not an issue when administrative data are used
Administrative data are also conducive to following former foster youth over time
without significant sample attrition Such an approach would also be consistent with the
growing use of administrative data in other child welfare research on out-of-home care5
The primary drawback of this approach is that administrative data are collected to meet
accountability and internal monitoring needs and hence may be less than ideal for
answering questions of interest to researchers (Courtney amp Collins 1994 Goerge
1997)
An early example of this approach was study of public assistance receipt among
youth discharged to independent living from New York Cityrsquos child welfare system
Pettiford (1981) compared the September 1980 public assistance rolls for both AFDC
and Home Relief cases in New York City to a list of all New York City foster youth
discharged to independent living between June 1979 and June 1980 in order to estimate
the percentage of former foster youth who had received public assistance since their
discharge from care6
More recently researchers at Chapin Hall Center for Children examined labor market
outcomes of foster youth from California Illinois and South Carolina who aged out of
care during the year they turned 18 (Goerge et al 2002) The study covered a period of
13 quarters the four quarters prior to their 18th birthday the quarter in which they
turned 18 and the eight quarters following their 18th birthday No more than 45 of the
foster youth in any of the three states had earnings in a given quarter while between
14 and 30 had no earnings in any of the 13 quarters Mean quarterly earnings rose
approximately $500 over the 13 quarters but remained very low (ie $1089ndash1364) The
researchers also found that these foster youth were more likely to have been employed
but earned significantly less than foster youth who had been reunified within four years
of their 18th birthday7
The purpose of this study is to examine the self-sufficiency of former foster youth
who were at least 16 years old when they were discharged from Wisconsinrsquos out-of-
home care system Although it is similar to the Chapin Hall study in its exclusive
reliance on administrative data it differs from that study in two important respects First
the sample includes former foster youth who experienced discharge outcomes other than
4 Administrative records have sometimes been used to identify the sample of youth to be interviewed or to
obtain case history information such as reason for and type of out-of-home care placement5 For example researchers have used administrative data to study foster care exits and re-entries (eg Courtney
1994 1995 Courtney Piliavin amp Wright 1997 Goerge 1990 Wulczyn 1991) to compare kinship and non-
relative foster care (eg Barth Courtney Berrick amp Albert 1994 Courtney amp Needell 1997 Testa 1997) and
to examine the relationship between race and length of stay in care (eg Goerge 1990 McMurtry amp Lie 1992)6 A major limitation of this study is that former foster youth who received public assistance elsewhere in New
York or in other states were not counted as recipients7 Illinois youth who aged out of care were no more likely to have been employed than Illinois youth who were
reunified when a multivariate model was used
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181088
aging out and reunification (ie running away institutionalization relative placement or
adoption) Second it looks not only at labor market outcomes but also public assistance
receipt
2 Methodology
This research is based on state administrative data from three different sources
21 Human services reporting system (HSRS)
This state-wide human services data collection system contains a Substitute Care
Module that provides individual level data about all of the children who are placed in
Wisconsinrsquos out-of-home care system including information about their demographic
characteristics (eg gender birth date raceethnicity) and out-of-home care experiences
(eg entry and exit dates placement type discharge outcome)
22 Client assistance and re-employment support (CARES)8
This state-wide public assistance data collection system contains client-specific
information about program participation and benefits provided to low-income individuals
and families including AFDCTANF food stamps and child care assistance9
23 Unemployment insurance (UI) wage reporting system
This database contains quarterly wage records for all employees in Wisconsin who are
covered under the statersquos unemployment insurance laws10 Every quarter employers are
mandated to report the total amount of wages paid to each employee in a covered job
Each record contains the employeersquos social security number the employerrsquos identification
number the quarter in which the wages were paid and the total amount of wages paid
during that quarter
24 Sample selection
The Substitute Care Module of the Human Services Reporting System (HSRS) was
used to identify foster youth who were discharged from Wisconsinrsquos out-of-home care
system between January 1 1992 and December 31 1998 and who were at least 16 years
8 Prior to 1995 the statersquos public assistance data collection system was the Computer Reporting Network
(CRN)9 Because CARES tracks Medicaid eligibility but not Medicaid claims it provides no information about the
receipt of Medicaid benefits10 Approximately 94 of Wisconsin workers are engaged in covered employment (Terry Ludeman Wisconsin
Department of Workforce Development personal communication June 10 2002)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1089
old on the date of their discharge A total of 10183 foster youth met these selection
criteria11 However the results presented below include only the 8511 foster youth or
787 of the total sample for whom valid social security numbers could be identified
This restriction was necessary because social security numbers were used to link the HSRS
data to both the CARES and UI data12
Because the CARES and UI data were only available through the end of calendar year
2000 the observation period ranged from as few as eight quarters for those who were
discharged in the fourth quarter of 1998 to as many as 36 quarters for those who were
discharged in the first quarter of 1992 Thus the analyses were limited to the first eight
post-discharge quartersmdashie the maximum number of quarters for which all of the former
foster youth were observed13 All of the dollar values reported below were converted to
2000 dollars using the Consumer Price Index
3 Demographic characteristics and out-of-home care experiences of former foster
youth
The demographic characteristics and out-of-home care experiences of the 8511 former
foster youth whose outcomes were examined are summarized in Table 1
This sample of former foster youth is predominantly White and males outnumber
females by a ratio of nearly three to two Although Milwaukee County accounted for
a disproportionate share of Wisconsinrsquos out-of-home care caseload throughout the
1990rsquos only 20 of these former foster youth had been in Milwaukee Countyrsquos
care14
The mean age at most recent entry was between 15 and 16 years old but the
distribution was highly skewed Only 26 were 12 years old or younger when they last
entered care compared to 896 who were at least 15 years old15 This most recent out-of-
home care entry was also the first entry for a majority of these former foster youth Forty-
12 The implications of this restriction are discussed below13 The quarter in which foster youth were discharged was treated as the first post-discharge quarter if the
discharge date was between the first day of the first month and the fifteenth day of the second month in that
quarter The quarter in which foster youth were discharged was ignored and the following quarter was treated as
the first post-discharge quarter if the discharge date was between the sixteenth day of the second month and the
last day of the third month in that quarter Discharge cohort refers to all of the former foster youth who had been
discharged in a particular year14 In 1999 Milwaukee County accounted for 173 of Wisconsin residents under age 18 (US Census Bureau
2000) but was responsible for 553 of the statersquos out-of-home care caseload on December 31st of that year
(Courtney amp Dworsky 2001)15 Although young children ages birth to five years old account for an increasing percentage of the children
entering out-of-home care (Goerge Wulczyn amp Harden 1997) 29 of the children who entered care in 1999
were ages 11ndash15 and 11 were ages 16ndash18 (US Department of Health and Human Services 2002) In
Wisconsin adolescents accounted for an even higher percentage of the 1999 entry cohort 411 were 11ndash15
years old and 153 were 16ndash18 years old (US Department of Health and Human Services 2002)
11 This does not include the 21 foster youth who were transferred to a private child welfare agency or the seven
foster youth who died while in out-of-home care
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181088
aging out and reunification (ie running away institutionalization relative placement or
adoption) Second it looks not only at labor market outcomes but also public assistance
receipt
2 Methodology
This research is based on state administrative data from three different sources
21 Human services reporting system (HSRS)
This state-wide human services data collection system contains a Substitute Care
Module that provides individual level data about all of the children who are placed in
Wisconsinrsquos out-of-home care system including information about their demographic
characteristics (eg gender birth date raceethnicity) and out-of-home care experiences
(eg entry and exit dates placement type discharge outcome)
22 Client assistance and re-employment support (CARES)8
This state-wide public assistance data collection system contains client-specific
information about program participation and benefits provided to low-income individuals
and families including AFDCTANF food stamps and child care assistance9
23 Unemployment insurance (UI) wage reporting system
This database contains quarterly wage records for all employees in Wisconsin who are
covered under the statersquos unemployment insurance laws10 Every quarter employers are
mandated to report the total amount of wages paid to each employee in a covered job
Each record contains the employeersquos social security number the employerrsquos identification
number the quarter in which the wages were paid and the total amount of wages paid
during that quarter
24 Sample selection
The Substitute Care Module of the Human Services Reporting System (HSRS) was
used to identify foster youth who were discharged from Wisconsinrsquos out-of-home care
system between January 1 1992 and December 31 1998 and who were at least 16 years
8 Prior to 1995 the statersquos public assistance data collection system was the Computer Reporting Network
(CRN)9 Because CARES tracks Medicaid eligibility but not Medicaid claims it provides no information about the
receipt of Medicaid benefits10 Approximately 94 of Wisconsin workers are engaged in covered employment (Terry Ludeman Wisconsin
Department of Workforce Development personal communication June 10 2002)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1089
old on the date of their discharge A total of 10183 foster youth met these selection
criteria11 However the results presented below include only the 8511 foster youth or
787 of the total sample for whom valid social security numbers could be identified
This restriction was necessary because social security numbers were used to link the HSRS
data to both the CARES and UI data12
Because the CARES and UI data were only available through the end of calendar year
2000 the observation period ranged from as few as eight quarters for those who were
discharged in the fourth quarter of 1998 to as many as 36 quarters for those who were
discharged in the first quarter of 1992 Thus the analyses were limited to the first eight
post-discharge quartersmdashie the maximum number of quarters for which all of the former
foster youth were observed13 All of the dollar values reported below were converted to
2000 dollars using the Consumer Price Index
3 Demographic characteristics and out-of-home care experiences of former foster
youth
The demographic characteristics and out-of-home care experiences of the 8511 former
foster youth whose outcomes were examined are summarized in Table 1
This sample of former foster youth is predominantly White and males outnumber
females by a ratio of nearly three to two Although Milwaukee County accounted for
a disproportionate share of Wisconsinrsquos out-of-home care caseload throughout the
1990rsquos only 20 of these former foster youth had been in Milwaukee Countyrsquos
care14
The mean age at most recent entry was between 15 and 16 years old but the
distribution was highly skewed Only 26 were 12 years old or younger when they last
entered care compared to 896 who were at least 15 years old15 This most recent out-of-
home care entry was also the first entry for a majority of these former foster youth Forty-
12 The implications of this restriction are discussed below13 The quarter in which foster youth were discharged was treated as the first post-discharge quarter if the
discharge date was between the first day of the first month and the fifteenth day of the second month in that
quarter The quarter in which foster youth were discharged was ignored and the following quarter was treated as
the first post-discharge quarter if the discharge date was between the sixteenth day of the second month and the
last day of the third month in that quarter Discharge cohort refers to all of the former foster youth who had been
discharged in a particular year14 In 1999 Milwaukee County accounted for 173 of Wisconsin residents under age 18 (US Census Bureau
2000) but was responsible for 553 of the statersquos out-of-home care caseload on December 31st of that year
(Courtney amp Dworsky 2001)15 Although young children ages birth to five years old account for an increasing percentage of the children
entering out-of-home care (Goerge Wulczyn amp Harden 1997) 29 of the children who entered care in 1999
were ages 11ndash15 and 11 were ages 16ndash18 (US Department of Health and Human Services 2002) In
Wisconsin adolescents accounted for an even higher percentage of the 1999 entry cohort 411 were 11ndash15
years old and 153 were 16ndash18 years old (US Department of Health and Human Services 2002)
11 This does not include the 21 foster youth who were transferred to a private child welfare agency or the seven
foster youth who died while in out-of-home care
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
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67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1089
old on the date of their discharge A total of 10183 foster youth met these selection
criteria11 However the results presented below include only the 8511 foster youth or
787 of the total sample for whom valid social security numbers could be identified
This restriction was necessary because social security numbers were used to link the HSRS
data to both the CARES and UI data12
Because the CARES and UI data were only available through the end of calendar year
2000 the observation period ranged from as few as eight quarters for those who were
discharged in the fourth quarter of 1998 to as many as 36 quarters for those who were
discharged in the first quarter of 1992 Thus the analyses were limited to the first eight
post-discharge quartersmdashie the maximum number of quarters for which all of the former
foster youth were observed13 All of the dollar values reported below were converted to
2000 dollars using the Consumer Price Index
3 Demographic characteristics and out-of-home care experiences of former foster
youth
The demographic characteristics and out-of-home care experiences of the 8511 former
foster youth whose outcomes were examined are summarized in Table 1
This sample of former foster youth is predominantly White and males outnumber
females by a ratio of nearly three to two Although Milwaukee County accounted for
a disproportionate share of Wisconsinrsquos out-of-home care caseload throughout the
1990rsquos only 20 of these former foster youth had been in Milwaukee Countyrsquos
care14
The mean age at most recent entry was between 15 and 16 years old but the
distribution was highly skewed Only 26 were 12 years old or younger when they last
entered care compared to 896 who were at least 15 years old15 This most recent out-of-
home care entry was also the first entry for a majority of these former foster youth Forty-
12 The implications of this restriction are discussed below13 The quarter in which foster youth were discharged was treated as the first post-discharge quarter if the
discharge date was between the first day of the first month and the fifteenth day of the second month in that
quarter The quarter in which foster youth were discharged was ignored and the following quarter was treated as
the first post-discharge quarter if the discharge date was between the sixteenth day of the second month and the
last day of the third month in that quarter Discharge cohort refers to all of the former foster youth who had been
discharged in a particular year14 In 1999 Milwaukee County accounted for 173 of Wisconsin residents under age 18 (US Census Bureau
2000) but was responsible for 553 of the statersquos out-of-home care caseload on December 31st of that year
(Courtney amp Dworsky 2001)15 Although young children ages birth to five years old account for an increasing percentage of the children
entering out-of-home care (Goerge Wulczyn amp Harden 1997) 29 of the children who entered care in 1999
were ages 11ndash15 and 11 were ages 16ndash18 (US Department of Health and Human Services 2002) In
Wisconsin adolescents accounted for an even higher percentage of the 1999 entry cohort 411 were 11ndash15
years old and 153 were 16ndash18 years old (US Department of Health and Human Services 2002)
11 This does not include the 21 foster youth who were transferred to a private child welfare agency or the seven
foster youth who died while in out-of-home care
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 1
Demographic characteristics and out-of-home care experiences of former foster youth (N=8511)
Frequency Percentage
Gender
Female 3487 4097
Male 5021 5899
Missing 3 004
RaceEthnicity
African American 1669 1961
White 6034 7090
Native American 297 349
Asian 159 187
Hispanic 270 317
Missing 82 096
Adjudicated status at most recent out-of-home care entry
CHIPSmdashabuse andor neglect 1322 1553
CHIPSmdashother 1971 2316
Delinquent 4625 5434
JIPS-status offender 309 363
Voluntary placement 284 334
Placement type prior to discharge
Foster home 4465 5246
Group home 2297 2699
Child caring institution 1749 2055
County responsible for the provision of out-of-home care services
Milwaukee 1733 2036
All other counties 6778 7964
Discharge outcome
Reunified 4886 5741
Placed with relatives 381 448
Adopted 63 074
Reached age of majority or completed education 1514 1779
Discharged to independent living 373 438
Ran away 628 738
Transferred to institutional setting (eg correctional facility psychiatric hospital) 666 783
Exit year
1992 1157 1359
1993 1180 1386
1994 1149 1350
1995 1242 1459
1996 1277 1500
1997 1264 1485
1998 1242 1459
Pre-discharge employment
Employed in at least one of the four quarters prior to discharge 4445 522
Employed in quarter prior to discharge 3085 362
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181090
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 1 (continued)
Median Mean
Age at most recent entry 160 156
Age at first entry 150 147
Age at discharge 170 168
Number of placements during the most recent episode 10 14
Cumulative number of placements 20 24
Cumulative number of episodes 10 18
Number of months in care during the most recent episode 86 139
Cumulative number of months in care 128 202
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1091
nine percent had experienced at least one prior episode of out-of-home care compared to
59 who had not16
Given the age at which these former foster youth entered their most recent episode of out-
of-home care it should not be surprising that more than half had been adjudicated delinquent
compared to 39 who had been adjudicated children in need of protection (CHIPS)17
A majority of these former foster youth had spent less than 12 months in out-of-home
care since their most recent entry and nearly half had spent less than 12 months in out-of-
home care altogether18 Most had experienced only one placement during their most recent
episode and two thirds had experienced fewer than three placements when all of their out-
of-home care episodes were taken into account19
Most of these youth were discharged prior to their 18th birthday and more than half
had been living in a foster home prior to discharge20 The most common discharge
outcomes for these former foster youth were reunification and relative placement followed
by aging out and discharge to independent living
Finally more than half of these former foster youth were employed in at least one of the
four quarters prior to their discharge and more than one third were employed in the quarter
immediately before they left care
4 Labor market outcomes Employment and earnings
Eighty percent of these former foster youth were employed in at least one of the first
eight quarters after their discharge and there was relatively little variation in this
percentage over time (Table 2)
17 Only 7 had been adjudicated status offendersjuveniles in need of protection (JIPS) or placed voluntarily
The HSRS code for adjudicated status was missing for one youth
19 Throughout this paper episode refers to an uninterrupted period in out-of-home care placement refers to each
distinct period of time in a given type of foster home or other out-of-home care setting Youth can experience
multiple placements during a single episode as well as multiple episodes over time20 Although most Wisconsin foster youth age out at the statutorily defined age of 18 years old some are 19 or 20
years old Youth can also be discharged to independent living before their eighteenth birthday
16 More specifically 233 had experienced one prior episode 149 had experienced two or three and 41
had experienced four or more This also explains why the distribution of age at first entry into out-of-home care
was still highly skewed 695 of these former foster youth were at least 15 years old when they first entered out-
of-home care 207 were 13 or 14 years old and 118 were 12 years old or younger
18 Because total length of stay in care ranged from less than 12months (473) to 60months or more (57) all of
the multivariate analyses include cumulative number of months in out-of-home care since first entry as a covariate
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 2
Employment during the first eight post-discharge quarters by discharge cohort (N=8511)
Discharge Year Percentage employed in at least one quarter
1992 779
1993 778
1994 807
1995 817
1996 803
1997 813
1998 800
Total 800
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181092
There was a small but statistically significant gender difference in employment at the
bivariate level 825 of the females and 783 of the males were employed in at least one
of the first eight quarters after their discharge These former foster youth were employed in
a mean of 37 of the first eight quarters after their discharge excluding the 1702 former
foster youth who were never employed increases the mean to 47 (Table 3)
However the number of quarters in which former foster youth were employed each
year did not appear to increase with time since discharge (Table 4)
Mean and median earnings for the first eight post-discharge quarters were $5170 and
$2322 respectively (Table 5) Although excluding those former foster youth who were not
employed in any of their first eight post-discharge quarters increases mean earnings to
$6463 and median earnings to $3709 this is still substantially less than a full-time
minimum wage worker would have earned over the same eight quarters21 In fact their
total earnings for that two year period were below the poverty threshold for a household of
one in a single year for every year between 1992 when that threshold was $7299 to 2000
when that threshold was $895922
Although previous studies have found higher earnings among male than female former
foster youth (Cook et al 1991 Courtney et al 2001) the females in this sample earned
significantly more during their first eight post-discharge quarters (mean=$5495
median=$2746) than the males (mean=$4945 median=$2026) at the bivariate level
However this difference disappeared when the comparison was limited to those who were
employed Among those former foster youth females earned a mean of $6663 and a
median of $3985 during their first eight post-discharge quarters males earned a mean of
$6043 and a median of $348423
The earnings of these former foster youth did increase over time Nevertheless they
remained very low Indeed mean and median earnings for four quarters were still below
the poverty threshold even eight years post-discharge (Table 6)
21 A full-time minimum wage worker would earn a total of $9373 per year given the current minimum wage of
$515 per h and assuming 35 h of work per week Even at the lower minimum hourly wage of $425 that was in
effect prior to August 1996 a full-time minimum wage worker would have earned a total of $773522 In determining whether these former foster youth should be categorized as poor one would take not only their
earnings but also other sources of income into account23 Again this difference could reflect the fact that previous studies would have captured earnings from jobs not
covered under the statersquos UI laws
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 3
Number of quarters with earnings during the first eight post-discharge quarters
Number of quarters N Percentage of Sample Percentage of Employed
0 1702 200 ndash
1 749 80 110
2 798 94 117
3 836 98 123
4 836 98 123
5 890 105 131
6 796 94 117
7 808 95 119
8 1096 129 161
Total 8511 1000 1000
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1093
Although the labor market outcomes of these former foster youth were generally
poor there was a considerable amount of variation among sample members with
different demographic and out-of-home care history characteristics This variation was
examined using two multivariate techniques Table 7 shows the parameter estimates
from two Cox proportional hazard models in which the dependent variable was the first
post-discharge quarter in which former foster youth were employed The hazard can be
thought of as the instantaneous risk that an event will occur at a particular time given
that the event has not already occurred Hazard models allow for censored observations
that do not experience the event (Allison 1984 1995) and that they can incorporate
covariates whose values change over time24 The most common hazard model the Cox
proportional hazard is a semi-parametric model that does not require specification of a
baseline hazard function Rather it assumes that hazard ratios remain constant (ie
proportional) over time25 The Cox proportional hazard model is particularly appropriate if
one is interested in the effects of explanatory factors on the baseline hazard (Allison 1984
1995) The two models were identical except that the second included a time-varying
covariate equal to zero if the quarter preceded implementation of the statersquos TANF
program in September 1997 and to one if the quarter followed TANF implementation26
Former foster youth whose first employment was not observed were treated as censored
cases27
24 Technically such an observation is said to be right-censored That is the observation period ends before the
event can occur An observation is said to be left-censored if there is a risk of experiencing the event before the
observation period begins25 For additional information about the Cox proportional hazard model see Allison (1984) or Yamaguchi
(1991) Although the model also assumes that the effects of the covariates are time invariant interactions between
time and any of the covariates can be incorporated into the model by including additional terms (Allison 1984
1995)26 The third quarter of 1997 was treated as a bbefore-TANFQ quarter27 Parameter estimates for continuous variables can be interpreted as the effect of a unit change in the covariate
on the log of the hazard controlling for all of the other covariates in the model Parameter estimates for
dichotomous variables can be thought of as the difference between the log of the hazard for the group whose
value is one and the log of the hazard for the group whose value is zero (Yamaguchi 1991)
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 4
Number of quarters with earnings in each post-discharge year
Full sample Employed in at least one post-discharge quarter
Post-discharge year Na Mean Median Na Mean Median
First 8511 174 200 7528 197 20
Second 8511 200 200 7528 226 20
Third 7439 209 200 6648 234 30
Fourth 6190 211 200 5579 235 30
Fifth 4896 210 200 4440 232 30
Sixth 3667 208 200 3316 230 30
Seventh 2504 206 200 2255 228 30
Eighth 1321 198 200 1203 218 30
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181094
All else being equal being employed prior to discharge and being discharged at an
older age were associated with an increased hazard of becoming employed28 Conversely
being male being non-White (but not Asian) being adjudicated CHIPS for reasons other
than abuse or neglect or being placed voluntarily and experiencing a discharge outcome
other than reunification relative placement or adoption were associated with a decreased
hazard of becoming employed However there was no relationship between the hazard of
first employment and TANF implementation
Table 8 shows the parameter estimates from a tobit model in which the dependent
variable was total earnings for the first eight post-discharge quarters29 The tobit model
was appropriate in this case because a significant minority of these former foster youth had
zero earnings during their first eight post-discharge quarters and hence the distribution of
the dependent variable was highly skewed30
All else being equal being employed prior to discharge being discharged at an older
age and belonging to a later discharge cohort were associated with an increase in total
earnings for the first eight post-discharge quarters Conversely being African American
or Hispanic being placed voluntarily and running away or being transferred to an
29 The parameter estimates in Table 8 are not as directly interpretable as parameter estimates from an ordinary
least squares regression See Roncek (1992) for a discussion of how the effects of the independent variables on
the dependent variable can be calculated30 Tobit models are often used with censored samples where only limited information is known about the value
of the dependent variable for sample members whose value on that dependent variable is above or below some
threshold In this case where the threshold is a lower limit the sample is said to be censored from below If the
threshold is an upper limit the sample is said to be censored from above The tobit model is also related to the
two-equation sample selection model in that the latter reduces to a single equation if the same process which
determines the value of the dependent variable also determines whether the dependent variable exceeds the
threshold that must be exceeded for it to be observed (Berk amp Ray 1982) In fact when these data were analyzed
using a sample selection model with a selection equation that predicted the probability of being employed and a
substantive equation that predicted earnings among former foster youth who were employed the results were
generally consistent with those shown in Table 8 and are available from the author upon request For additional
information about tobit models see Breen (1996) and Long (1997)
28 The relationship between pre- and post-discharge employment could reflect unobserved differences between
former foster youth who had been employed prior to discharge and former foster youth who had not
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 5
Total earnings for the first eight post-discharge quarters
Full sample Employed in at least one of the
first eight post-discharge quarters
N 8511 6809
Median 2322 3709
Mean 5170 6463
Standard Deviation 8188 8686
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1095
institution setting were associated with a decrease in total earnings for the first eight
post-discharge quarters
5 Public assistance receipt
Nearly 17 of these former foster youth were recipients of AFDCTANF cash
assistance and nearly a third were food stamp recipients in at least one of the first eight
quarters after their discharge (Table 9)31
Not surprisingly given that single mother families have long comprised the majority of
AFDCTANF caseloads receipt of AFDCTANF cash assistance was nearly three times
higher among females (269) than among males (95) It is possible that a smaller
gender difference would have been observed if receipt of Supplemental Security Income
(SSI) by former foster youth with disabilities had also been included in the measure
because eligibility for SSI is not limited to those caring for dependent children Although
the gender difference was not as large food stamp receipt was 17 times higher among
females (434) than among males (252) To some extent this probably reflects the fact
that the rules regarding food stamp receipt are more stringent for able-bodied adults
without dependent children32
The sample mean for months of AFDCTANF cash assistance receipt during the first
eight post-discharge quarters was 137 for months of food stamp receipt it was 28 When
the analysis is limited to those former foster youth who received benefits these means
increase to 825 and 85 respectively (Table 10)33
The variation in public assistance receipt among these former foster youth was analyzed
using the same multivariate techniques that were used to analyze the variation in labor
31 To be counted as an AFDCTANF cash assistance or food stamp recipient former foster youth had to be
identified as the head of an AFDCTANF or food stamp case between January 1 1992 and December 31 2000
Former foster youth who were only dependents on the case of a parent or other individual would not have been
counted as recipients32 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week33 These figures do not include months in which former foster youth participated in Wisconsinrsquos TANF program
but were not eligible for a monthly cash payment or in which they received no benefits because of sanctions for
non-compliance with work or other requirements
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 6
Total earnings by post-discharge year
Post-discharge year All former foster youth Former foster youth with post-discharge employment
Na Median Mean Na Median Mean
First 8511 559 1974 7528 840 2232
Second 8511 1191 3196 7528 1727 3613
Third 7439 1683 4234 6648 2437 4737
Fourth 6190 1914 4988 5579 2784 5534
Fifth 4896 2182 5595 4440 3150 6169
Sixth 3667 2302 6188 3316 3273 6843
Seventh 2504 2491 6780 2255 3609 7529
Eighth 1321 2154 7639 1203 3495 8388
a Because former foster youth were not observed for the same number of post-discharge quarters the number of
observations gradually declines after the first two years
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181096
market outcomes Table 11 shows the parameter estimates from two pairs of Cox
proportional hazard models in which the dependent variable was the first post-discharge
quarter of public assistance receipt The first pair modeled the hazard of AFDCTANF
cash assistance receipt the second pair modeled the hazard of food stamp receipt The two
models in each pair are identical except that the second includes a time-varying covariate
equal to zero if the quarter preceded implementation of the statersquos TANF program in
September 1997 and one if the quarter followed TANF implementation34 Former foster
youth who did not receive public assistance during the observation period are treated as
censored cases
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increased hazard of receiving AFDC
TANF Conversely being male being adjudicated CHIPS being transferred to an
institutional setting being in care longer being discharged at an older age and being
discharged after 1993 were associated with a decreased hazard of receiving AFDCTANF
Although TANF implementation was also associated with a decreased hazard of receiving
AFDCTANF all of the other relationships remained significant when this time-varying
covariate was added to the model Not only is this finding consistent with the reduction in
AFDCTANF caseloads discussed above but in addition it seems reasonable given the
TANF programrsquos more stringent work requirements It is also worth noting that although
pre-discharge employment was strongly related to employment and earnings it was not
related to public assistance receipt in any of the models
Many of these same relationships were observed when dependent variable was food
stamp receipt Being non-White receiving services from Milwaukee County being
discharged from a foster home and experiencing more placements were associated with an
increased hazard of receiving food stamps Conversely being male being transferred to an
institutional setting aging out or being discharged to independent living being in care
longer and being discharged after 1994 were associated with a decreased hazard of
receiving food stamps Although adding the time-varying covariate to the model did not
change these results the relationship between TANF implementation and food stamp
34 The third quarter of 1997 was treated as a bbefore-TANFQ quarter
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 7
Parameter estimates from Cox proportional hazard model predicting the first quarter of post-discharge
employment (N=8511)
Covariates Beta coefficients
Model I Model II
Gender
Male 0962 0963
Female
Raceethnicity
African American 3766 3770
Native American 1294 1294
Asian 0458 0459
Hispanic 1467 1467
Missing 0026 0027
White
County providing services
Milwaukee 0122 0236
All other counties
Adjudicated status
CHIPSmdashabuseneglect 0309 0311
CHIPSmdashother 1025 1024
JIPS-status offender 0522 0517
Voluntary placement 1895 1894
Delinquent
Placement type prior to discharge
Foster home 0353 0353
Group home 0230 0229
Child caring institution
Discharge outcome
Aged out or discharged to independent living 0849 0847
Ran away 2312 2311
Transferred to other state institution 2537 2539
Reunification relative placement or adoption
Total number of episodes 0033 0030
Total number of placements 0012 0014
Total number of months in care 0007 0007
Discharge year
1998 0139 0314
1997 0592 0403
1996 0168 0099
1995 0550 0517
1994 0313 0295
1993 0211 0216
1992
Age at discharge in years 0595 0593
Pre-discharge employment 7922 7927
TANF implementation 0437
2 log likelihood 12601219 12601149
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1097
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 8
Parameter estimates from tobit model predicting total earnings during the first eight post-discharge quarters
(N=8511)
Covariates Beta coefficients
Intercept 2518935
Gender
Male 15000
Female
Raceethnicity
African American 380122
Native American 66551
Asian 63970
Hispanic 119685
Missing 113095
White
County providing services
Milwaukee 31574
All other counties
Adjudicated status
CHIPSmdashabuseneglect 32320
CHIPSmdashother 44842
JIPS-status offender 31351
Voluntary placement 140521
Delinquent
Placement type at discharge
Foster home 24922
Group home 507
Child caring institution
Discharge outcome
Aged out or discharged to independent living 16772
Ran away 193444
Transferred to other state institution 198503
Reunification relative placement or adoption
Total number of episodes 16023
Total number of placements 15083
Total number of months in care 527
Discharge year
1998 77008
1997 97084
1996 36582
1995 25054
1994 44319
1993 17790
1992
Age at discharge in years 159208
Pre-discharge employment 617434
Log likelihood 7276499
p b 005
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181098
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
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67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 9
Receipt of public assistance benefits during the first eight post discharge quarters (N=8511)
Frequency Percentage
Received AFDCTANF cash assistance 1414 166
Received food stamps 2779 327
Received AFDCTANF cash assistance andor food stamps 2925 344
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1099
receipt was significant and positive (in contrast to the significant but negative coefficient
in the AFDCTANF model) This means that TANF implementation was associated with
an increase in the hazard of receiving food stamps While other studies have found a
reduction in food stamp caseloads following TANF implementation (Rosso 2001 US
General Accounting Office 1999a Wilde Cook Gundersen Nord amp Tiehen 2000
Zedlewski amp Brauner 1999) the positive coefficient in this model could reflect an
increasing reliance on food stamps rather than cash assistance to help make ends meet
since Wisconsinrsquos TANF program was implemented3536 It also reflects the fact that food
stamp receipt was twice as high as AFDCTANF receipt
Table 12 shows the parameter estimates from two tobit models in which the dependent
variable was the number of months in which these former foster youth received public
assistance during their first eight post-discharge quarters The tobit model was appropriate
in this case because the median number of months in which these former foster youth
received public assistance was zero and hence the distribution of the outcome variable
was highly skewed particularly in the case of AFDCTANF receipt37
Being non-White receiving services from Milwaukee County and being discharged
from a foster or group home were associated with an increase in the number of months in
which former foster youth received AFDCTANF Conversely being male being
transferred to an institutional setting being discharged at an older age and being
discharged after 1995 were associated with a decrease in the number of months in which
former foster youth received AFDCTANF
With the exception of being discharged from a group home all of the factors that were
related to the number of months in which former foster youth received AFDCTANF
were also related to the number of months in which former foster youth received food
stamps In addition experiencing more placements was associated with an increase in the
number of months of food stamp receipt while running away from care being in care
35 In fact the decline in food stamp participation was greater in Wisconsin than in any other state (GAO
1999ab) According to an evaluation of Wisconsinrsquos food stamp program by the statersquos Legislative Audit Bureau
there were 147370 fewer food stamp participants in July 1999 than in March 1995mdasha reduction of 452
(Legislative Audit Bureau 2000) However food stamp caseloads were higher in 2000 than in 1999 reversing a
decade long trend (Wisconsin Department of Workforce Development 2002c)36 Consistent with this hypothesis nearly twice as many of the former foster youth who were food stamp
recipients first received food stamps after as compared to before TANF was implemented37 These data were also analyzed using a sample selection model with a selection equation that predicted the
probability of receiving public assistance and a substantive equation that predicted the number of months of
benefit receipt among recipients Although the substantive findings were not very different from those presented
here the correlation of one between the error terms in the selection and substantive equations raises questions
about the stability of the parameter estimates The results of these models are available from the author upon
request
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 10
Number of months of public assistance receipt during the first eight post-discharge quarters
AFDCTANF Food stamps AFDCTANF andor food stamps
Full
sample
Recipients
only
Full
sample
Recipients
only
Full
sample
Recipients
only
N 8511 1414 8511 2779 8511 2925
Median 0 70 0 70 0 70
Mean 137 825 28 85 298 896
Standard Deviation 392 597 55 657 572 670
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181100
longer and being discharged in 1995 were associated with a decrease in the number of
months of food stamp receipt
6 Welfare reform and public assistance receipt
The years during which these former foster youth were discharged from care coincided
with a series of policy changes that completely transformed welfare in Wisconsin
Beginning in the 1980s the state obtained a total of 11 waivers from the US Department
of Health and Human Services that allowed it to experiment with its welfare program38
By the time the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 had replaced Aid to Families with Dependent Children (AFDC) with the Temporary
Assistance for Needy Families (TANF) block grant Wisconsinrsquos cash assistance caseload
had already declined 65 This caseload reduction continued at an accelerated pace after
the statersquos TANF program was implemented in September 1997 and was one of the largest
experienced by any state (US Department of Health and Human Services 2001b)39
Although some of the reduction in Wisconsinrsquos cash assistance caseload can probably
be attributed to the robust economy and low unemployment rate that characterized the late
1990rsquos it seems likely that the reform of Wisconsinrsquos welfare program also played a role40
As in other states cash assistance is time-limited and no longer an entitlement However
Wisconsinrsquos TANF program is decidedly more work-based than the TANF program in any
other state Only participants with significant barriers to employment are eligible for
monthly cash payments and receipt of those payments is contingent upon participation in
assigned community service jobs or other work-related activities41
There is some evidence that the statersquos welfare reforms had an effect on public
assistance receipt among these former foster youth First the percentage of former foster
38 These waivers which included Learnfare Bridefare and Work Not Welfare were made possible by Section
1115 of the Social Security Act Some applied only to select counties or involved a small percentage of the total
AFDC caseload (Corbett 1995)39 Although TANF cash began to rise in 2001 that is beyond this studyrsquos observation period (Wisconsin
Department of Workforce Development 2003)40 For discussions about the relative impacts of welfare reform and economic conditions on caseload reductions
see Blank (2001) Danzinger (1999) and Schott Greenstein and Primus (1999)41 Participants who are deemed job ready are not eligible for cash payments but may receive case management
services as well as food stamps childcare subsidies andor medical assistance Only parents of newborns less than
12 weeks old are exempt from the work requirements
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 11
Parameter estimates from Cox proportional hazard model predicting the first quarter of public assistance receipt
(N=8511)
Covariates AFDCTANF Food stamps
Model I Model II Model I Model II
Gender
Male 14125 14168 6934 6912
Female
Raceethnicity
African American 7532 7522 5349 5366
Native American 7096 7116 2887 2876
Asian 7033 7097 3361 3281
Hispanic 5563 5588 2946 2942
Missing 5516 5536 4934 4907
White
County providing services
Milwaukee 4216 4219 2891 2897
All other counties
Adjudicated status
CHIPSmdashabuseneglect 1646 1643 0171 0196
CHIPSmdashother 1446 1464 0455 0412
JIPS-status offender 2245 2207 0561 0593
Voluntary placement 0558 0562 1082 1331
Delinquent
Placement type prior to discharge
Foster home 3592 3593 1657 1664
Group home 1944 1938 0223 0230
Child caring institution
Discharge outcome
Aged out or discharged to
independent living
0768 0776 1422 1427
Ran away 0521 0497 0496 0473
Transferred to other state institution 4442 4444 2522 2526
Reunification relative
placement or adoption
Total number of episodes 0285 0286 0213 0207
Total number of placements 0236 0235 0675 0675
Total number of months in care 0039 0039 0050 0050
Discharge Year
1998 19485 15260 6435 10802
1997 11946 9845 5780 8548
1996 5992 4941 3308 4854
1995 2618 2074 2274 3078
1994 1576 1323 1051 1413
1993 0512 0623 0147 0001
1992
Age at discharge in years 2427 2429 0449 0460
Pre-discharge employment 0288 0262 0309 0340
TANF implementation 4050 4583
2 log likelihood 2968140 2966724 6661307 6656012
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1101
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 12
Parameter estimates from tobit model predicting the number of months of public assistance receipt during the first
eight post-discharge quarters (N=8511)
Covariates AFDCTANF Food stamps
Intercept 316037 79091
Gender
Male 93922 56595
Female
Raceethnicity
African American 68812 62462
Native American 60593 22033
Asian 75070 53676
Hispanic 41012 29265
Missing 50879 41792
White
County Providing Services
Milwaukee 48110 35916
All other counties
Adjudicated Status
CHIPSmdashabuseneglect 7909 1326
CHIPSmdashother 4489 6047
JIPS-status offender 16412 4403
Voluntary placement 16435 13276
Delinquent
Placement Type at Discharge
Foster home 35119 23038
Group home 15684 5586
Child caring institution
Discharge outcome
Aged out or discharged to independent living 5518 7748
Ran away 3081 18792
Transferred to other state institution 43357 33176
Reunification relative placement or adoption
Total number of episodes 1380 0552
Total number of placements 3149 5226
Total number of months in care 0156 0386
Discharge year
1998 155725 38525
1997 104183 46342
1996 45556 28532
1995 12256 22033
1994 5236 3769
1993 9503 4254
1992
Age at discharge in years 23626 6441
Pre-discharge employment 0397 3434
Log likelihood 7419012 13514434
p b 005
p b 001
p b 0001
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181102
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
Table 13
Receipt of public assistance benefits during the first eight post discharge quarters by discharge year (N=8511)
Discharge year Received AFDCTANF Received food stamps Received AFDCTANF andor
food stamps
Frequency Percentage Frequency Percentage Frequency Percentage
1992 259 224 425 367 445 385
1993 301 255 458 388 483 409
1994 265 231 430 374 458 399
1995 252 203 395 318 428 345
1996 186 146 376 294 399 313
1997 97 77 335 265 348 275
1998 54 44 360 290 364 293
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1103
youth who received AFDCTANF during their first eight post-discharge quarters fell with
each succeeding discharge cohort (Table 13)
What makes this trend particularly interesting is that there was little variation in the
percentage of former foster youth who were employed during their first eight post-discharge
quarters over this same period In other words it does not appear that former foster youth
who might otherwise have received public assistance became employed instead
Second beginning with the foster youth who were discharged in 1994 each succeeding
discharge cohort received AFDCTANF in fewer of the first eight quarters after their dis-
charge There was a similar trend in food stamp receipt but it was not monotonic (Table 14)
Third implementation of the statersquos TANF program was associated with a decreased
hazard of receiving AFDCTANFmdashbut an increased hazard of food stamp receipt (See
Table 11) This evidence notwithstanding the extent to which these trends should be
attributed to welfare reform as opposed to a robust economy or the low unemployment rate
remains unclear
7 Summary and discussion of results
The results presented above are based on an analysis of state administrative data for a
sample of 8511 former foster youth who were discharged from Wisconsinrsquos out-of-home
Table 14
Mean number of months of public assistance receipt during the first eight post-discharge quarters by discharge
year (N=8511)
Discharge
year
AFDCTANF Food stamps AFDCTANF andor food stamps
Full sample Recipients only Full sample Recipients only Full sample Recipients only
1992 195 879 340 938 329 969
1993 226 882 377 967 413 1012
1994 210 903 344 909 382 951
1995 162 793 353 798 303 873
1996 114 777 347 831 270 881
1997 049 634 202 755 207 632
1998 020 496 213 732 200 598
Total 137 825 280 855 298 896
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181104
care system between 1992 and 1998 and who were at least 16 years old on the date of
their discharge Like the results of earlier studies they provide ample reason to be
concerned about the economic well-being of youth being discharged from out-of-home
care
71 Employment and earnings
Although the vast majority of these former foster youth were employed in at least one
of the first eight quarters after they were discharged from care most experienced at least
one quarter in which they did not work Even more troubling these former foster youth
earned substantially less during the first eight quarters after their discharge than a full-time
minimum wage worker would have earned over the same period of time Indeed their total
earnings for that two year period were below the poverty threshold for a single year And
while the earnings of these former foster youth did increase over time over time the
increase was not enough to bring them out of poverty even eight years after they had been
discharged from care
In contrast to prior studies which have found either no gender difference in employment
(Courtney et al 2001) or that female former foster youth were less likely to be employed
(Cook et al 1991 Festinger 1983) the likelihood of being employed during the first
eight post-discharge quarters was higher for the females (825) than for the males
(783) among this sample of former foster youth This relationship between gender and
employment was also evident at the multivariate level Being female was associated with
an increased hazard of first becoming employed
There are at least three plausible explanations for this gender beffectQ First it couldreflect differences between the attributes of the male and female former foster youth in this
sample such as differences in educational attainment for which this study did not control
Second it is possible that males were more likely than females to have been engaged in
uncovered employment which the UI data would not have captured42 And third it could
be due to the higher rate of incarceration among male former foster youth reported by
Courtney et al (2001)43
What makes this gender difference in employment particularly interestingly is that
it did not translate into a gender difference in earnings once other factors were
controlled This could reflect the well-documented gap in earnings between men and
women (US Department of Labor Bureau of Labor Statistics 2001) That is male
former foster youth may have earned more per hour worked once they became
employed44
Consistent with the well-documented racialethnic gap in employment and earnings
there was a strong relationship between the labor market outcomes of these former foster
43 Alternatively it could be argued that males were more likely to resort to illegal activities because they were
less likely to have been employed44 According to the 1996 Consumer Population Survey median weekly earnings for full-time workers were
$302 among 16ndash24 year old males and $273 among 16ndash24 year old females (US Department of Labor Bureau
of Labor Statistics 1996)
42 This could account for some of the discrepancy between the results of this study and the results of previous
research based on survey data
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1105
youth and their raceethnicity45 Regardless of whether the outcome measure was
employment or earnings African American and Latino former foster youth fared more
poorly than their White counterparts
Another strong predictor of labor market outcomes among these former foster youth
was employment prior to discharge Pre-discharge employment was positively related to
both the hazard of becoming employed and to earnings during the first eight post-
discharge quarters What is not clear from these data is whether this beffectQ reflects a
causal relationship It could be that pre-discharge employment was simply a proxy for
some other factor such as motivation for which this study did not control
There was also a relationship between the type of discharge these former foster youth
had experienced and their labor market outcomes It makes sense that being
institutionalized would be associated with less favorable labor market outcomes in that
institutionalization would reduce if not eliminate opportunities for employment
Conversely being reunified placed with relatives or adopted may have been associated
with more favorable labor market outcomes because youth who had experienced one of
those discharge types would have been in a better position to get help from family
members with connections to employers and knowledge about employment opportuni-
ties46 More difficult to explain is why both running away and aging outbeing discharged
to independent living were negatively related to employment but only running away was
negatively related to earnings
Finally the positive relationship between labor market outcomes and age at discharge
could indicate that employers were using age as a proxy for desirable characteristics such
as maturity or reliability It is also possible that older former foster youth were more
mature or more reliable In either case former foster youth who were older when they were
discharged seemed to have less trouble finding employment and employers seemed willing
to pay them more
72 Public assistance receipt
One third of these former foster youth received either cash assistance or food stamps
during the first eight quarters after their discharge In other words they were discharged
from state care only to become dependent on the state yet again47 However chronic
welfare recipiency was relatively rare Among recipients the mean number of months of
benefit receipt during the first eight post-discharge quarters was between eight and nine
47 Comparing these results to the results of other studies is complicated by the fact that different researchers have
defined bwelfare dependenceQ in different ways
45 For example the 1996 Consumer Population Survey found that that 48 of White 16ndash19 year olds and 73 of
White 20ndash24 year olds in the non-institutionalized civilian labor force were employed compared to 26 of African
American 16ndash19 year olds and 56 of African American 20ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1997) Median weekly earnings for full-time workers were $295 among Whites who were 16ndash24
year olds and $269 among African Americans who were 16ndash24 year olds (US Department of Labor Bureau of
Labor Statistics 1996)46 However it could also reflect unobserved differences between those foster youth who were reunified placed
with relatives or adopted and those who experienced other discharge outcomes
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181106
That there was a strong and consistent relationship between gender and public
assistance receipt was not surprising Only former foster youth caring for dependent
children would have been eligible for AFDCTANF and single mothers with children have
always comprised the overwhelming majority of AFDCTANF caseloads Moreover
although male (as well as female) former foster youth who were not caring for dependent
children would have been eligible for food stamps if their income were sufficiently low
the rules regarding food stamp receipt are more stringent for able-bodied adults without
dependent children48 It is possible that a smaller gender difference would have been
observed if receipt of Supplemental Security Income (SSI) by former foster youth with
disabilities had also been included in the measure because eligibility for SSI is not limited
to those caring for dependent children
The other demographic characteristic related to public assistance receipt was race
ethnicity Being non-White increased the hazard of receiving both cash and food stamp
benefits It was also associated with more months of benefit receipt This relationship
makes sense given that African American and Latino former foster youth experienced less
favorable labor market outcomes
Several factors could explain the positive relationship between public assistance receipt
and being in the care of Milwaukee County One possibility is that the Milwaukee County
youth were not as well prepared for the transition to young adulthood as those who had
been in the care of other counties For example there may have been differences in the
quality of independent living services provided or the percentage of foster youth who
received those services It is also possible that the bdemandQ for public assistance was
greater in Milwaukee County because Milwaukee County had a consistently higher
unemployment rate The problem with this explanation is that there was no relationship
between being in the care of Milwaukee County and labor market outcomes49 Finally
Milwaukee County is one of the few counties in the state where TANF is administered by
private rather than public agencies However it is not clear why this would lead to the
observed relationship Nor would it account for any differences prior to September 1997
when Wisconsin began to implement its TANF program50
The positive relationship between being discharged from a foster or group home and
public assistance receipt might seem counter-intuitive given that youth discharged from
those settings would be less likely to have a disability or behavioral problem than youth
discharged from a child caring institution (CCI) It could reflect the exclusion of
Supplemental Security Income (SSI) a means-tested cash benefit for persons with
disabilities from the outcome measure Alternatively it could be due to differences
between those former foster youth who were discharged from a CCI and those who were
discharged from a foster or group home for which the models did not control For example
48 Under the 1996 Personal Responsibility and Work Opportunities Reconciliation Act able-bodied adults
without dependents were eligible for food stamps in only three months during any 36 month period unless the
able-bodied adult without dependent children is working or participating in a training program for at least 20 h per
week49 In every year between 1993 and 2002 the average monthly employment rate was higher in Milwaukee
County than in the state as a whole (Wisconsin Department of Workforce Development 2002ab)50 The last two explanations assume that former foster youth who had been in the care of Milwaukee County
remained in Milwaukee County after their discharge and conversely that former foster youth who had been in the
care of other counties did not migrate to Milwaukee County
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1107
if incarceration were positively related with being discharged from a CCI but negatively
related with public assistance receipt then public assistance receipt would be negatively
related to being discharged from a CCI51
There were also negative relationships between public assistance receipt and (1) being
transferred to an institutional setting (2) being discharged at an older age and (3) length of
stay in care The first of these relationships probably reflects the fact that former foster
youth would not have been eligible for public assistance while they were institutionalized
The second might be explained by the positive relationship between labor market
outcomes and age at discharge The third could indicate that youth who remain in care
longer have more time to prepare for living independently after their discharge52
73 Impact of welfare reform
Although there was no evidence of a relationship between the labor market outcomes of
these former foster youth and welfare reform the data do suggest that welfare reform did
have an impact on public assistance receipt Specifically the percentage of former foster
youth who received benefits decreased with each successive discharge cohort and
beginning with the 1994 discharge cohort each succeeding discharge cohort received cash
assistance in fewer of the first eight quarters after their discharge53 Moreover in addition
to these cohort effects there was a negative relationship between TANF implementation
and the hazard of first public assistance receipt Just how much of this effect should be
attributed to welfare reform as opposed to other factors such as a robust economy or the
low unemployment rate is not clear
Less expected was the positive relationship between TANF implementation and food
stamp receipt However upon closer examination it appears to reflect the fact that the
number of former foster youth who first received food stamps after TANF implementation
was nearly twice the number who first received food stamps before TANF implementation
8 Study limitations
The limitations of this study and their implications are discussed below Most are
related to the administrative data that were used
81 Measurement of employment and earnings
There are a number of problems with using UI wage reporting data to measure
employment and earnings First the UI data do not capture earnings from employment not
51 Incarceration would be negatively correlated with public assistance receipt because former foster youth would
not be eligible for public assistance if they were incarcerated
53 Although the statersquos TANF program was not implemented until September 1997 Wisconsin began reforming
its welfare system almost a decade before Thus the relationship between being discharged in 1995 or 1996 and
public assistance receipt is not inconsistent with the hypothesis
52 Length of stay in care was only related to the number of months of food stamp receipt
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181108
covered under Wisconsinrsquos unemployment insurance laws or from employment in other
states54 Second because earnings reported to state UI agencies are used to determine UI
payroll taxes there is a financial incentive for employers not to report all of the wages they
pay to workers in covered jobs or to categorize workers as independent contractors rather
than regular employees (Kornfeld amp Bloom 1999) And third the UI data provide no
information about hourly wages number of hours worked or the dates of employment for
which workers were paid The lack of information about dates of employment is
particularly unfortunate because one can only measure employment in the crudest of
waysmdashie the number of quarters in which earnings were reported It also makes it
difficult to examine transitions between spells of employment and spells of public
assistance receipt55
82 Measurement of public assistance receipt
The problems with using CARES data to measure public assistance receipt among these
former foster youth are twofold The data would not capture benefits that former foster
youth received while living in another state Nor would they capture cash assistance in the
form of Supplemental Security Income (SSI) or General Relief provided in Wisconsin56
As noted above the exclusion of these other cash benefits for which some former foster
youth who were not caring for dependent children might have been eligible could help
explain the large gender beffectQ57
83 Problems with HSRS data
One major problem with the HSRS data is that HSRS did not include a field that
reliably distinguished between relative and non-relative foster care placements until
October 1997 when new federal reporting requirements mandated states to make this
distinction (Scott Tews Wisconsin Department of Health and Family Services personal
communication June 2000 Tews 2000)58 Thus it was not possible to compare the
57 This might explain why 144 (n=1227) of these former foster youth appeared to have had no income during
their first eight post-discharge quarters
55 Former foster youth could have been concurrently employed and receiving cash assistance under AFDC if
their earnings were sufficiently low This would not have been possible under Wisconsinrsquos TANF program
because former foster youth who were employed would have been ineligible for cash assistance56 In 1996 Wisconsinrsquos statewide General Relief program was replaced by a Medical Relief Block Grant for
Milwaukee County and General Relief block grant for all of the other counties in the state Counties are not
required to participate in this block grant program and can use their block grant funds to provide cash andor
medical assistance (Gallagher 1999 Watson amp Gold 1997)
58 HSRS indicated that only 38 of the 5418 former foster youth in this sample who were discharged from a
foster home placement had been living with kin and this does not appear to be a peculiarity of this sample
According to HSRS only 67 of the 8288 children in a foster home placement on December 31 1999 were
placed in relative foster homes Among children in Milwaukee County it was 94 (Courtney amp Dworsky 2001)
54 The Wisconsin Department of Workforce Development estimates that approximately 6 of Wisconsin
workers are engaged in uncovered employment (Terry Ludeman Wisconsin Department of Workforce
Development personal communication June 10 2002 Ludeman 2002) However this percentage could be
higher (or lower) among particular sub-groups (Hotz amp Scholz 2001)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1109
outcomes of former foster youth who had been placed in non-relative foster homes to those
of former foster youth who had been placed with kin This is a significant limitation
because there are least two reasons to hypothesize that foster youth who are placed with
kin will be less prepared for independent living than those who are placed with non-
relative foster families59 First compared to non-relative foster parents kinship caregivers
tend to be older and in poorer health to have fewer financial resources and to be less
educated (Berrick Barth amp Needell 1994 Dubowitz Tepper Feiglelman Sawyer amp
Davidson 1990 Dubowitz et al 1994) These attributes may make it more difficult for
kin to prepare foster youth for independent living Second children placed with kin tend to
receive fewer services than those placed in non-relative foster homes (Berrick et al 1994
Dubowitz et al 1990 1994 Goerge Van Voorhis Grant Casey amp Robinson 1992)
Thus child welfare agencies may be less likely to provide independent living services to
youth who are placed in kinship foster care On the other hand research also shows that
placements with kin tend to be more stable than placements with non-relatives (Berrick et
al 1994 Courtney amp Needell 1997 Dubowitz et al 1990 Inglehart 1994) Although
this study failed to find much of a relationship between stability as measured by the
number of placements youth had experienced and either labor market outcomes or public
assistance receipt for placement stability there is
The HSRS data are limited in at least two other respects First because HSRS does not
track the provision of independent living services this study could not compare the
outcomes of former foster youth who had received independent living services to those of
former youth who had not Second because HSRS provides no information about
educational attainment it was impossible to examine the relationship between the
outcomes of these former foster youth and the years of schooling they completed Nor was
it possible to control for differences in educational attainment that might have contributed
to some of the relationships that were observed
84 Range of outcomes measured
This study could only examine indicators of self-sufficiency that could be measured
with the CARES and Unemployment Insurance data Although employment earnings and
public assistance receipt are key indicators of self-sufficiency they are not the only ones
For example the administrative data provide no information about homelessness
economic hardships or food insecurity these former foster youth might have experienced
Nor was it possible to determine whether these former foster youth were being supported
by a parent other relative spouse or partner with whom they were living with
85 Potential sources of selection bias
There were several potential sources of selection bias in this study First because social
security numbers were needed to link the HSRS records to both the CARES and UI data
the results presented were based on the sample of 8511 former foster youth whose social
59 According to AFCARS data 356 of the children in a foster home placement on September 30 1999 were
being cared for by kin (US Department of Health and Human Services 2001a)
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181110
security number could be identifiedmdash787 of the 10183 former foster youth who were
eligible for inclusion There were two notable differences between the youth for whom
social security numbers were identified and the youth for whom they were not First
although both groups were predominantly White African Americans comprised a larger
percentage of the group with identifiable SSNs And second Milwaukee County was more
likely to have provided out-of-home care services to the group with identifiable SSNs even
though counties other than Milwaukee provided out-of-home care services to the majority
of both groups Given these differences and the fact that both raceethnicity and county
providing care were related to the outcomes that were measured the parameter estimates
from the multivariate models could be biased60
Second social security numbers were obtained for 1654 former foster youth whose
SSNs were missing from their HSRS records by matching of first name last name sex and
date of birth to the CARES data61 Although this significantly increased the sample size
the 1654 former foster youth were not a random sample of the groups whose HSRS
records were missing SSNs Again this could bias the reported parameter estimates
And third these former foster youth were not randomly assigned to their out-of-home
care experiences (eg placement type discharge outcome) Rather their out-of-home care
experiences probably resulted from some confluence of individual family worker agency
and county level factors62 Hence it is possible that some of the relationships that were
observed between the outcomes that were measured and the measures pertaining to out-of-
home care could reflect unobserved factors for which this study did not control rather than
their out-of-home experiences per se63
9 Policy program and research implications
The policy implications of this study for the provision of independent living services
and for child welfare services more generally as well as a number of implications for
future research are discussed in turn below
For many years the needs of older foster youth were largely ignored by federal child
welfare policy The landmark federal child welfare legislation the Adoption Assistance
62 Indeed some characteristics of out-of-home care may be endogenous to others For example there is some
evidence that the likelihood that foster youth will exit care via one route (eg emancipation) rather than another
(eg running away) is related to their placement history characteristics (Courtney amp Barth 1996) Dealing with
this endogeneity would require a more elaborate model than the two-equation models that have traditionally been
used63 For example research suggests that placement in congregate care settings is positively correlated with
behavioral problems (Courtney 1994 1998)
60 The possibility of selection bias was examined by estimating three bivariate probit models In each model the
selection equation predicted the probability that a social security number was identified for a given former foster
youth The substantive equations predicted the probability of being employed and the probability of receiving
public assistance Although the rho for the model involving employment was statistically significant the other
two rhorsquos were not61 Similar matching procedures could not be used to obtain social security numbers from the Unemployment
Insurance data because the UI data file does not include other identifying information such as name or date of
birth
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1111
and Child Welfare Act of 1980 (PL 96-272) contained no provisions for federal funding
to help states prepare their foster youth for independent living (DeWoody Ceja amp
Sylvester 1993) It was not until 1986 when Congress amended the Social Security Act in
1986 to include the Title IV-E Independent Living Program that federal funding for this
purpose became available to the states64 Unfortunately despite an increase in
appropriations from 45 million dollars for fiscal year 1987 to 70 million dollars in fiscal
year 1992 federal funding did not keep pace with the growing number of eligible foster
youth and only a fraction of the foster youth who were eligible for services actually
received them (US Department of Health and Human Services 1999)65
Thus it is probably not surprising that more than a decade after the Title IV-E
Independent Living Program was established there was little evidence that the outcomes
of former foster youth had significantly improved (US Department of Health and Human
Services 1999) On the contrary the few studies that were done seemed to indicate that
foster youth were still not adequately prepared to live as independent young adults
Like these other studies this research demonstrates that there is good reason to be
concerned about the self-sufficiency of former foster youth Most of these former foster
youth experienced one or more periods with no employment during the first two years
after their discharge from out-of-home care and their earnings when they were employed
were very low In addition a significant percentage of these former foster youth received
AFDCTANF andor food stamp benefits during those first two post-discharge years
Although the outcomes of these former foster youth are very troubling there is at least
some reason to be optimistic that the situation will improve In response to the concerns
that were again being raised about the unmet needs of older foster youth Congress passed
the Foster Care Independence Act of 1999 Title I of this legislation replaced the Title IV-E
Independent Living Program with the newly established John H Chafee Foster Care
Independence Program which doubled the maximum amount of money that states could
draw down each year to 140 million dollars66 In addition to giving states a fiscal incentive
to enhance their independent living programs the Foster Care Independence Act mandates
states to provide the US Department of Health and Human Services with data on a variety
of outcome measures (eg educational attainment employment avoidance of depend-
66 States are now required to use at least some portion of their funds to provide follow-up services to former
foster youth who already aged out and are allowed to use up to 30 of their funds to pay for the room and board
of 18ndash20 year old former foster youth The Foster Care Independence Act also increased the amount of assets that
foster youth can accumulate and still be Title IV-E eligible from $1000ndash10000 This development gave states the
option of extending Medicaid coverage to 18ndash20 year old former foster youth and eliminated the prohibition
against contracting with private for-profit independent living service providers using federal funds
64 States could use their independent living funds to provide educational services for youth working towards a
high school diploma or GED employment services for youth who needed vocational training or career planning
and housing services for youth who wanted help finding a place to live However a provision in the law
prohibited states from using their Title IV-E funds for independent living subsidies or transitional housing (Allen
Bonner amp Greenan 1988 Barth 1990)65 Under the original legislation federally funded independent living services could only be provided to Title IV-
E eligible youth between the ages 16 and 18 years old The eligible population was expanded in 1988 to include
all 16 to 18 year old foster youth regardless of their Title IV-E eligibility status and to former foster youth who had
been discharged from care within the past six months Starting in 1990 states had the option of providing
independent living services to former foster youth until age 21
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181112
ency homelessness non-marital childbirth incarceration and high-risk behaviors) and
requires the US Department of Health and Human Services to conduct evaluations of
innovative or potentially significant state efforts to prepare foster youth for independent
living67 Whether this increased funding will lead to improved outcomes among future
cohorts of former foster youth remains to be seen
In the meantime it is possible to make some recommendations based on the results of
this study as to what states like Wisconsin can do to better prepare foster youth for living
as independent young adults Although Wisconsinrsquos Independent Living Program has been
in existence since 1987 it was not until July 1 2001 that Independent Living Program
funds were allocated to all of the statersquos 72 counties68 Prior to that date the number of
counties funded to provide independent living services varied from year to year and
counties funded for one year were not necessarily funded for the next However the
number of counties funded in any given year tended to increase over time69
91 Implications for the provision of independent living services
First this research suggests that employment and training services should be major
components of any independent living program as should opportunities for employment
including subsidized job placements while foster youth are still in care Independent
living program funds could be used to pay for some of these employment and training
services but foster youth would also be eligible for youth employment and training
services funded under the Workforce Investment Act of 1998 (US Department of Labor
2000)70
Second although the educational attainment of these former foster youth could not be
ascertained from the HSRS data previous studies have consistently found that many
former foster youth do not have a high school diploma or even a GED (Barth 1990 Cook
et al 1991 Courtney et al 2001 Festinger 1983 Jones amp Moses 1984) and there is no
reason to believe that these former foster youth were any different in this regard
particularly given their poor labor market outcomes71 This suggests a need for states to do
more to ensure that foster youth graduate from high school or at least obtain a GED and
have the opportunity (and financial resources in the form of tuition assistance) to pursue
higher education
70 The Workforce Investment Act consolidated the year-round youth training program and the summer youth
employment program that had previously been funded under the Job Training and Partnership Act Low-income
youth are eligible for WIA-funded employment and training services if they face at least one of several barriers to
employment including foster care placement specified in the Act (US Department of Labor 2000)71 This is supported by Courtney et alrsquos recent study of Wisconsin youth who aged out of foster care in the mid-
1990rsquos Approximately one third of the former foster youth in their sample had no high school diploma when they
were interviewed 12ndash18 months post-discharge
67 Because there have been so few methodologically sound evaluations of independent living programs (US
Department of Health and Human Services 1999 US General Accounting Office 1999b) relatively little is
known about their effects on the self-sufficiency of former foster youth Several program evaluations including
prospective studies with random assignment are currently in the field68 This change was facilitated by the Chafee Foster Care Independence Act of 1999 which doubled the amount
of federal independent living program funds that could be allocated to the states69 In addition two Indian tribesmdashLac du Flambeau and Ho-Chunkmdashand the Division of Juvenile Corrections
have also been funded to provide independent living services
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1113
Third although provision of employment training and educational services should lead
to better labor market outcomes and hence reduce the need for public assistance some
former foster youth will still not earn enough to support themselves If these former foster
youth are caring for dependent children they may be eligible for TANF If they have a
disability they may be eligible for SSI However neither of these programs would be an
option for non-disabled former foster youth without dependent children72 Moreover state
TANF programs were not designed to deal with the special circumstances of recently
discharged former foster youth Thus states might consider using some of their
independent living program funds to provide a stipend to former foster youth who have
little or no income during the first 12ndash18 months after their discharge from care
Finally this study suggests that the need for independent living services is not limited
to foster youth whose permanency plan is aging out or discharge to independent living
Even if former foster youth who experience those discharge outcomes are more likely to
be living on their own and responsible for their own support than former foster youth who
were reunified placed with relatives or adopted these data seem to indicate that the latter
cannot necessarily count on their families for support73 Moreover because child welfare
agencies cannot always predict which foster youth will eventually age out it does not
make sense to limit the provision of independent living services to foster youth for whom
aging out or discharge to independent living is the permanency plan Although this policy
would be more costly in the short-term a reduction in public assistance receipt as well as
increased revenue from higher earnings could make it cost effective in the long-term
A number of these policy recommendations are similar to those contained in the
Wisconsin Independent Living Advisory Committeersquos 2001 report Independent Living for
Children in Out-of-Home Care (Wisconsin Department of Health and Family Services
2000)74
92 Implications for child welfare policy
This research has implications not only for the use of independent living program
funds but also for child welfare policy more generally speaking First it points to the
potentially adverse effects of placement instability and hence implies that additional
attention should be paid to minimizing the number of placements foster youth experience
while they are in care75 Second it suggests that at least under some conditions former
foster youth may benefit from remaining in care for a longer period of time Third it seems
73 Specifically former foster youth who had aged out or been discharged to independent living had a lower
hazard of receiving public assistance received food stamps in fewer months during their first eight post-discharge
quarters and received more AFDCTANF and food stamp benefits than former foster youth who were reunified
placed with relatives or adopted74 The Independent Living Advisory Committee was charged with making policy and program recommenda-
tions to the Division of Child and Family Services regarding the provision of independent living services to youth
aging out of care as well as recommendations regarding the evaluation of those services75 In fact reducing the number of placements foster youth experienced was one of the recommendations made
by Wisconsinrsquos Independent Living Advisory Committee
72 In fact 521 (n=4432) of these former foster youth had no earnings from covered employment and received
no AFDCTANF benefits during the first quarter after their discharge from care
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181114
to indicate that there may be some advantages to being discharged at an older age and
hence that the practice of discharging youth to independent living prior to age 18 may not
be in the best interests of some foster youth76
Finally unless independent living preparation becomes as much a part of permanency
planning as preventing placement and moving children into permanent homes the
outcomes of former foster youth are unlikely to improve It would be particularly ironic if
Wisconsin fails to adequately prepare its foster youth for the transition from the out-of-
home care system to self-sufficiency at a time given the emphasis over the past decade on
the self-sufficiency of welfare recipients
93 Research implications
In addition to the policy and program implications already discussed this study also has
implications for future research First additional research is needed not only on the
outcomes of former foster youth who aged out or were discharged to independent living
but also on the outcomes of those who experience other discharge outcomes The study by
researchers at Chapin Hall which compared the outcomes of youth who aged out to those
of youth who were reunified is a step in this direction Moreover given our current lack of
knowledge about the effects of independent living services on the outcomes of foster youth
who age out of care it is not at all clear that foster youth who experience other discharge
outcomes would benefit from independent living services or that they would benefit from
same types of services to the same extent Thus evaluations of independent living
programs should include foster youth for whom the permanency plan is not discharge to
independent living in their samples Not only could this research examine the relationship
between discharge outcome and the effects of independent living services but it could also
address the cost-effectiveness question raised above
Second while this study demonstrates the adverse consequences of placement
instability additional research is needed to better understand the relationship between
multiple placements and adverse post-discharge outcomes For example is it because
placement instability disrupts schooling that former foster youth who experienced more
placements also experienced less favorable outcomes or is some other mechanism
involved
Third although there was some evidence that longer stays in care could in fact have
positive effects it does not follow that foster youth should necessarily remain in out-of-
home care longer than they otherwise would More research is needed to determine both
which youth are likely to benefit from longer stays in care and the conditions under which
those benefits are likely to be realized For example does it matter whether foster youth
are in a foster home group home or child caring institution And do foster youth benefit
from longer stays in care even if they do not receive independent living services
Answering these questions is particularly important because some foster youth may be
adversely affected by longer stays in care
76 Again this is consistent with one of the Wisconsin Independent Living Advisory Committeersquos
recommendations namely that foster care services be extended beyond the age of 18
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1115
Fourth additional research is needed to identify those youth who are most likely to
benefit from remaining in care after age 18 Moreover studies should examine whether the
relationship between the outcomes of former foster youth and the age at which they were
discharged from care can be explained by differences in educational attainment That is
were foster youth who were discharged at an older age more likely to have completed high
school or to have pursued post-secondary education
Fifth although former foster youth who had been discharged from foster or group
homes experienced more favorable employment-related outcomes than former foster youth
who had been discharged from child caring institutions additional research is needed to
determine why For example are there differences between the employment opportunities
that are available to youth who are placed in foster or group homes and those that are
available to youth who are placed in child caring institutions Or alternatively are there
differences between foster youth who are placed in foster or group homes and those who
are placed in child caring institutions Distinguishing between these explanations is
important because they have different policy implications The first implies a need for
equal opportunities whereas the second implies a need for different services
Finally although it was hypothesized that at least some of the relationships that were
observed might be due to differences in incarceration rates this hypothesis could not be
tested Thus additional research is needed to examine whether there are differences in
incarceration rates among former foster youth with different demographic characteristics
or out-of-home care experiences and if so whether those differences can explain any of
the relationships that were observed77
References
Allen M Bonner K amp Greenan L (1988) Federal legislative support for independent living Child Welfare
67 19ndash32
Allison P (1984) Event history analysis Regression for longitudinal event data Newbury Park CA7 Sage
Publications
Allison P (1995) Survival analysis using the SAS system A practical guide Cary NC7 SAS Institute
Barth R (1990) On their own The experiences of youth after foster care Child and Adolescent Social Work 7
419ndash440
Barth R Courtney M amp Berry M (1994) Timing is everything An analysis of the time to adoption and
legalization Social Work Research 18 139ndash148
Berk R amp Ray S (1982) Selection biases in sociological data Social Science Research 11 352ndash398
Berrick J Barth R amp Needell B (1994) A comparison of kinship foster homes and foster family homes
Implications for kinship foster care as family preservation Children and Youth Services Review 16 33ndash63
Blank R (2001) Welfare reform and the economy Welfare reform and beyond brief 7 Washington DC7
Brookings Institute
Breen R (1996) Regression models Censored sample-selected or truncated data Thousand Oaks CA7 Sage
Publications
77 Although the 54 high school graduation rate among Cook et alrsquos sample was much lower than the 1990
high school graduation rate of 78 for 18ndash24 year olds it was almost the same as the high school graduation rate
among 18ndash24 year old young adults whose income was below the poverty threshold Given that the families of
children who are placed in care are disproportionately poor it is possible that the former foster youth would have
been educationally disadvantaged even if they had never been placed in care Cook et al did not address this
possibility
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181116
Cook R Fleishman E amp Grimes V (1991) A national evaluation of Title IV-E foster care independent living
programs for youth Phase 2 Final Report vol 1 Rockville MD7 Westat Inc
Corbett T (1995) Welfare reform in Wisconsin The rhetoric and the reality In D Norris amp L Thompson (Eds)
The politics of welfare reform (pp 19ndash40) Thousand Oaks CA7 Sage Publications
Courtney M (1994) Factors associated with the reunification of foster children with their families Social Service
Review 68 81ndash108
Courtney M (1995) Reentry to foster care of children returned to their families Social Service Review 69
81-108 226-241
Courtney M (1998) Correlates of social worker decisions to seek treatment-oriented out-of-home care Children
and Youth Services Review 20 281ndash304
Courtney M amp Barth R (1996) Pathways of older adolescents out of foster care Implications for independent
living services Social Work 41 75ndash83
Courtney M amp Collins R (1994) New challenges and opportunities in child welfare outcomes and information
technologies Child Welfare 73 359ndash378
Courtney M amp Dworsky A (2001) Children in out-of-home care in Wisconsin 1990ndash1999 Madison WI7
Department of Health and Family Services
Courtney M amp Needell B (1997) Outcomes of kinship foster care Lessons from California In J Berrick R
Barth amp N Geilbert (Eds) Child welfare research review (pp 130ndash150) New York7 Columbia University
Press
Courtney M Piliavin I Grogan-Kaylor A amp Nesmith A (2001) Foster youth in transitions to adulthood A
longitudinal view of youth leaving care Child Welfare 80(6) 685ndash717
Courtney M Piliavin I amp Wright B (1997) Transitions from and returns to out-of-home care Social Service
Review 71 652ndash667
Danzinger S (Ed) (1999) Economic conditions and welfare reform Kalamazoo MI7 WE Upjohn Institute for
Employment Research
DeWoody M Ceja K amp Sylvester M (1993) Independent living services for youths in out-of-home care
Washington DC7 Child Welfare League of America
Dubowitz H Feiglelman S Harrington D Starr R Zuravin S amp Sawyer R (1994) Children in kinship
care How do they fare Children and Youth Services Review 16 85ndash106
Dubowitz H Tepper V Feiglelman S Sawyer R Davidson N (1990) The physical and mental health
and educational status of children placed with relatives Final report Report prepared for the Maryland
Department of Human Resources and the Baltimore City Department of Social Services Baltimore
MD
Festinger T (1983) No one ever asked us A postscript to foster care New York7 Columbia University Press
Gallagher L J (1999) A shrinking portion of the safety net General assistance from 1989 to 1998 Washington
DC7 The Urban Institute
Goerge R (1990) The reunification process in substitute care Social Service Review 64 422ndash457
Goerge R (1997) Potential and problems in developing indicators on child well-being from administrative data
In R Hauser B Brown amp W Prosser (Eds) Indicators of childrenrsquos well-being (pp 457ndash471) New York7
Russell Sage Foundation
Goerge R Bilaver L Lee B Needell B Brookhad A amp Jackman W (2002) Employment outcomes for
youth aging out of foster care Washington DC7 US Dept of Health and Human Services Office of the
Assistant Secretary for Planning and Evaluation
Goerge R Van Voorhis J Grant S Casey K amp Robinson M (1992) Special education experiences of foster
children An empirical study Child Welfare 71 419ndash438
Goerge R Wulczyn F amp Harden A (1997) An update from the multistate foster care data archive Foster
care dynamics 1983ndash1994 Chicago7 Chapin Hall Center for Children
Hotz V Scholz J (2001) Measuring employment and income for low-income populations with administrative
and survey data Discussion paper 1224-01 Madison WI Institute for Research on Poverty
Inglehart A (1994) Kinship foster care Placement service and outcome issues Children and Youth Services
Review 16 107ndash122
Jones M amp Moses B (1984)West Virginiarsquos former foster children Their experiences in care and their lives as
young adults New York7 Child Welfare League of America
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash1118 1117
Kornfeld R amp Bloom H (1999) Measuring program impacts on earnings and employment Do unemployment
insurance wage reports from employers agree with surveys of individuals Journal of Labor Economics 17
168ndash197
Legislative Audit Bureau (2000 August) An evaluation The food stamp program Madison WI7 Author
Long J (1997) Regression models for categorical and limited dependent variables Thousand Oaks CA7 Sage
Publications
Ludeman T hterryludemandwdstatewiusi (2002 June 10) Re UI coverage [Personal email]
Maluccio A amp Fein E (1985) Growing up in foster care Child and Youth Services Review 7 123ndash134
McDonald T Allen R Westerfelt A amp Piliavin I (1996) Assessing the long-term effects of foster care A
research synthesis Washington DC7 Child Welfare League of America
McMurtry S amp Lie G (1992) Differential exit rates of minority children in foster care Social Work Research amp
Abstracts 28 42ndash48
Pettiford P (1981) Foster care and welfare dependency A research note New York7 Human Resource
Administration Office of Policy and Program Development
Roncek D (1992) Learning more from tobit coefficients Extending a comparative analysis American
Sociological Review 57 503ndash507
Rosso R (2001) Trends in Food Stamp Program participation rates 1994 to 1999 Washington DC7
Mathematica Policy Research Institute
Schott L Greenstein R amp Primus W (1999) The determinants of welfare caseload declines A rejoinder
Washington DC7 Center for Budget and Policy Priorities
Testa M (1997) Kinship foster care in Illinois In J Berrick R Barth amp N Geilbert (Eds) Child welfare
research review (pp 101ndash129) New York7 Columbia University Press
Tews S htewsdwdstatewiusi (2000 June) Re HSRS data [Personal email]
US Census Bureau (2000) Population estimates for counties by age group July 1 1999 Retrieved June 8
2002 from httpwwwcensusgovpopulationestimatescountycacawi99txt
US Department of Health and Human Services (1999) Title IV-E independent living programs A decade in
review Washington DC7 US Government Printing Office
US Department of Health and Human Services (2001a) The AFCARS Report Retrieved May 28 2002 from
httpwwwacfdhhsgovprogramscbpublicationsafcarsjune2001htm
US Department of Health and Human Services (2001b) State by state welfare caseloads since 1993 Retrieved
May 28 2002 from httpwwwacfdhhsgovnewsstatscase-famhtm
US Department of Health and Human Services (2002) Child welfare outcomes 1999 Annual report Safety
permanency and well being Washington DC Department of Health and Human Services Retrieved May 28
2002 from httpwwwacfdhhsgovprogramscbpublicationscwo99indexhtml
US Department of Labor Bureau of Labor Statistics (1996) Usual weekly earnings of wage and salary workers
Table 2 Median usual weekly earnings of wage and salary workers by age race Hispanic origin and sex
Washington DC Bureau of Labor Statistics Retrieved June 22 2002 from httpwwwblscensusgovcps
pubwkyeng2q96htm
US Department of Labor Bureau of Labor Statistics (1997) Employment and earnings Annual average 1996
Table 3 Employment status of the civilian non-institutional population by age sex and race Washington
DC Bureau of Labor Statistics Retrieved June 22 2002 from httpferretblscensusgovmacro171996
empearn3_000htm
US Department of Labor Bureau of Labor Statistics (2000) Employment status of the civilian non-institutional
population by sex age race and Hispanic origin 2000 annual average Washington DC Bureau of Labor
Statistics Retrieved June 22 2002 from httpwwwblsgovlaustable12full00pdf
US Department of Labor Bureau of Labor Statistics (2001) Highlights of womenrsquos earnings in 2000
Washington DC7 Bureau of Labor Statistics
US General Accounting Office (1999a) Food stamp program Various factors have led to declining
participation (RCED-99-185) Washington DC7 Author
US General Accounting Office (1999b) Foster care Effectiveness of independent living services unknown
(HEHS-00-13) Washington DC7 Author
Watson K amp Gold S (1997) The other side of devolution Shifting relationships between state and local
governments Washington DC7 The Urban Institute
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
-
- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
-
- Study limitations
-
- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
-
- Policy program and research implications
-
- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
-
- References
-
A Dworsky Children and Youth Services Review 27 (2005) 1085ndash11181118
Wilde P Cook P Gundersen C Nord M amp Tiehen L (2000) The decline in food stamp program
participation in the 1990rsquos Food Assistance and Nutrition Research Report 7 Washington DC7 US Dept of
Agriculture Economic Research Service
Wisconsin Department of Health and Family Services Division of Children and Family Services Independent
Living Advisory Committee (2000) Independent Living For Children In Out-Of-Home Care Madison WI
Author
Wisconsin Department of Workforce Development (2002a) Local area unemployment statistics (LAUS)
19902001 Historical series Madison WI DWD Retrieved June 22 2002 from httpwwwdwdstatewius
lmilaus_hist_month_2011htm
Wisconsin Department of Workforce Development (2002b) Wisconsin unemployment rates 1960 to most
current Retrieved on June 10 2002 from httpwwwdwdstatewiuslmilaus_adjusted_state98htm
Wisconsin Department of Workforce Development (2002c) Wisconsin Works and related program data Food
stamp caseload assistance groups by calendar year 1992ndash2000 Retrieved on June 10 2000 from http
wwwdwdstatewiusdesresearch5Fstatisticsfs5Fdatahtm
Wisconsin Department of Workforce Development (2003) Wisconsin Works and related programs data
Retrieved on July 26 2004 from httpwwwdwdstatewiusdwsrsdataw2datahtm
Wulczyn F (1991) Caseload dynamics and foster care reentry Social Services Review 65 133ndash156
Yamacuchi K (1991) Event history analysis Newbury Park CA7 Sage Publications
Zedlewski S amp Brauner S (1999) Are the steep declines in food stamp participation linked to falling welfare
caseloads Washington DC7 Urban Institute
- The economic self-sufficiency of Wisconsins former foster youth
-
- Introduction
- Methodology
-
- Human services reporting system (HSRS)
- Client assistance and re-employment support (CARES)8
- Unemployment insurance (UI) wage reporting system
- Sample selection
-
- Demographic characteristics and out-of-home care experiences of former foster youth
- Labor market outcomes Employment and earnings
- Public assistance receipt
- Welfare reform and public assistance receipt
- Summary and discussion of results
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- Employment and earnings
- Public assistance receipt
- Impact of welfare reform
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- Study limitations
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- Measurement of employment and earnings
- Measurement of public assistance receipt
- Problems with HSRS data
- Range of outcomes measured
- Potential sources of selection bias
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- Policy program and research implications
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- Implications for the provision of independent living services
- Implications for child welfare policy
- Research implications
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- References
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