Lessons of United States welfare reforms for Australian social policy

Abstract

Recent developments in policies towards lone parents in Australia have emphasised the role of employment in increasing income and self- sufficiency. The emphasis on employment is also the case in other OECD countries with a general trend towards benefits for lone parents being made dependent on participation in the labour market. The United States of America has undertaken substantial reforms over the 1990s to the ways in which social assistance is provided to lone parents. Following the reforms there has been a dramatic fall in the number of lone-mother families receiving welfare payments and increases in employment rates. This paper reviews the evidence on the impact of the United States welfare reforms on a wide range of outcomes in America and considers the implications for welfare reform in Australia. The importance of differences in Australian institutions, particularly the labour market and income support systems, are highlighted.