Uses data from National Longitudinal Survey of Youth to trace poverty status and welfare use in five years following an exit from Aid to Families with Dependent Children (AFDC). Results show substantial diversity in economic well-being. Women who were working when they exited from AFDC do better, and, to a lesser extent so do those who were…

Changes in parenting behavior have led to the troubling situation called the "feminization of poverty." Families headed by divorced women are doing better than is commonly supposed. Families headed by never-married women are doing worse. Public policy should reflect the differing needs of these two groups. (VM)

Welfare work programs are a form of welfare fraud. They engender little change compared to the resources that go into them. The most promising policies for reducing welfare roles are the following: (1) support of children by absent parents; (2) tax credit systems; (3) improvements in public education; and (4) provision of health care. (VM)