Transitions to Adulthood: Comparing TANF and Foster care Youth

1. Transitions to Adulthood: Comparing TANF and Foster care Youth Pamela C. Ovwigho, PhD Valerie Head, MPP Catherine E. Born, PhD August 19, 2008 Paper presented at the 48th annual workshop of the National Association for Welfare Research and Statistics This research was funded by the Maryland Department of Human Resources

2. background For vulnerable youth, transitioning to adulthood may be more difficult because family, social, & financial supports are often unavailable or inadequate. • TANF Youth: • Higher rates of adult welfare receipt • Difficulties in school performance & negative behaviors • Foster Care Youth: • Less likely to complete high school • Lower employment rates & earnings • More early parenthood & involvement with criminal justice There is considerable overlap among the TANF & child welfare populations.

3. THIS STUDY • Former TANF & foster care youth relied on government programs for additional support prior to coming into adulthood, yet eligibility for these programs typically ends between the ages of 18 and 21. • Evidence of difficulties among foster care youth, yet little is known regarding the experiences of youth “aging out” of TANF. Research Questions • How do former TANF youth fare in young adulthood in terms of employment, welfare receipt, & early parenthood? 2) How do these outcomes compare to those for former foster care youth?

4. Methods Sample • Universe of youth who turned 18 between July 1, 1999 and June 30, 2000 while either receiving TANF/TCA benefits as a child in Maryland or while in formal foster care in Maryland. Data • TANF, Unemployment Insurance (UI) wage, & child support administrative data were linked to assess the historical experiences and outcomes of former TANF and Foster Care youth. • Follow youth through age 25 for employment and through age 26 for TANF, Food Stamps, & births

5. Overlap: child Welfare History • As expected, most (82.4%) former foster care youth had a history of abuse or neglect. • Nearly one-third (33.6%) of former TANF youth were involved in a child abuse or neglect investigation prior to their 18th birthday. • A significant minority (8.9%) of former TANF youth have a history of out-of-home placement. Note: Excludes investigations were maltreatment was ruled out. * p<0.05 **p<0.01 ***p<0.001

6. OVERLAP: TANF History • One-fourth of former foster care youth had received TANF at some point in the five years before turning 18. • Most (68.4%) TANF youth age out of their parent’s case, yet almost one-third (31.6%) age out of a relative’s case. • Over one-fifth (22.4%) of TANF youth are aging out of their grandparent’s case. Relationship of TANF Youth to Casehead at 18th Birthday

7. Findings: SSI Utilization • Former foster care youth are significantly more likely to apply for SSI benefits than former TANF youth. • More than one-third of former foster care youth applied for SSI at some point during the study period, three times greater than the rate among former TANF youth. * p<0.05 **p<0.01 ***p<0.001

8. Findings: Employment • Most youth are employed in a UI-covered job at some point between ages 18 & 25. • In general, TANF youth have higher employment rates than FC youth & females have higher employment rates than males. • Comparing all four groups, TANF females are the most likely to be employed and FC males are the least likely to be employed.

9. Findings: Earnings • Of those employed, former TANF youth earn significantly more in a year compared to former foster care youth. • Despite being significantly more likely to be employed in each follow up year, TANF females earn significantly less, on average, than their male counterparts. • Average yearly earnings are lowest for former foster care males, although not significantly different from those of former foster care females.

10. Findings: Food Stamp Receipt • Former TANF youth are initially more likely to receive Food Stamps than former foster care youth, but the difference disappears after age 21. • Females have higher FS utilization rates than males. • In all periods, TANF females are the most likely to receive FS.

11. Findings: parenthood • TANF youth are significantly more likely than Foster Care youth to have a child by age 18 & to have any child at all by the end of the follow up period. • By age 18, almost one-third of TANF females & one-fifth of FC females are parents.

12. Findings: TANF Receipt • Up to about age 22, TANF females with children are significantly more likely to receive TANF than FC females with children. • Over time, TANF receipt for former TANF females with children decreases, but the rate for FC females remains stable.

13. conclusions • Our data confirm that there is considerable overlap in the childhood experiences of youth “aging out” of TANF and foster care. • Compared to former TANF youth, former foster care youth are disproportionately more likely to have a disability (as indicated by SSI applications) & are more likely to have been part of an investigation where maltreatment was not ruled out. • Upon reaching adulthood, most vulnerable youth work. However, their earnings tend to be fairly low, even through their early twenties.

14. conclusions There are significant differences in the adult outcomes of former TANF and foster care youth. Compared to their foster care peers, former TANF youth are: • More likely to work • Earn significantly more • Less likely to apply for SSI • More likely to receive Food Stamps, up to age 21 • More likely to experience early parenthood • Among females with children, more likely to receive TANF There are also important differences in terms of gender. At least in terms of employment & average annual earnings, former foster care males fare the worst.

15. limitations Underestimates employment and earnings. • Employment data is limited to Maryland employers covered by the UI-reporting laws. • Does not include federal employment, jobs in other states, and “under the table” employment. Does not include all adult outcomes that may be of concern. • We are currently working on getting access to data on higher education & incarceration. • Other possible events that could affect the results reported here include military enlistment and movement to another state.

16. implications • There are signs that many former TANF and FC youth are experiencing economic hardship and may need additional support to aid in their transition. • Both former TANF and foster care youth are in contact with the public social service agencies in their teens. This presents a window of opportunity for assessing their strengths and needs and better preparing them for financial independence. • Foster care males seem to be having the most difficult time. Further research on effective strategies to serve these young men is needed.

17. THANK YOU! Valerie Head, Research Analyst Family Welfare Research & Training Group University of Maryland, School of Social Work 525 W. Redwood St., Baltimore, MD vhead@ssw.umaryland.edu The full report will be available on our website: http://www.familywelfare.umaryland.edu