Does the loss of welfare income increase the risk of involvement with the child welfare system?

Abstract

This analysis is based on administrative, survey, and qualitative data from a study of welfare recipients in the Chicago metropolitan area. A relationship between welfare income reductions and child welfare risk is tested, and employment is found to moderate this relationship. Respondents who lacked employment income when their welfare grants were substantially reduced faced greater odds of child welfare system involvement than those with intact grants and those with employment income, controlling for various child welfare risk factors. This relationship is also partially mediated by environmental hardships such as food, housing, and utility service problems. Other stressful life events slightly compounded child welfare risk when combined with welfare grant reductions. In light of these findings, a discussion is offered on the potential impact of welfare reform policies on child welfare systems.