Welfare Reform in the United States

Advanced countries that are experiencing high unemployment are reconsidering their generous welfare states in light of the American experience. This article sets forth a summary of the principles of the U.S. welfare reform -particularly enforcing work requirements by time-limited welfare-as well as the assumptions, including, principally, that welfare destroys work incentives and that jobs are available for those who want to work. In fact, most welfare recipients have extensive connections to the labour market, but cannot survive on either jobs or welfare. If the reforms are carried out as intended, severe hardship will result. The predicted outcome is that most states and localities will avoid draconian effects, but there will continue to be a significant, largely invisible increase in hardship. Low-wage labour market reforms are proposed