U.S. Welfare Reform: What’s Relevant for Europe?

Abstract: This paper reviews the U.S. welfare reform efforts over the 1990s and the effects of these reforms to date. Seven “lessons ” of potential interest to European observ-ers are discussed, with particular attention to the conclusions of more recent research. Such research indicates, for example, that more effective programs contain both positive and negative incentives, utilise work-first as well as job training programs, and provide some important supports beyond just job and work skills. The paper ends with some speculations about why European policy-makers are becoming more interested in U.S. welfare reform experiments than they have been in the past. (JEL I3, J2, H1)