A QUASI-EXPERIMENTAL ASSESSMENT OF THE NATIONAL IMPACT OF THE 1981 OMNIBUS BUDGET RECONCILIATION ACT (OBRA) ON THE AID TO FAMILIES WITH DEPENDENT

The 1981 Omnibus Budget Reconciliation Act (OBRA) called for important changes in the Aid to Families with Dependent Children (AFDC) program. This article reports the findings of a study that tracked two nationally representative samples of AFDC cases to learn about caseload dynamics prior to and following OBRA’s implementation. Simple comparisons and the use of life-table techniques revealed that amendments to the AFDC program had a significant impact on program participation and costs that was not offset by any change in work behavior. Various features of the evaluation design and their relationship to the study objectives are described. n October 1981, states began implementing new rules governingthe treatment of income received by recipients of Aid to Fami-lies with Dependent Children (AFDC). Major changes required by the Omnibus Budget Reconciliation Act of 1981 (OBRA) included, first, the limitation of AFDC eligibility to families whose total gross monthly income did not exceed 150 % of the need standard set by the state in which the family lived, and, second, changes in the calculation of incom