Research Project Description

Mineta Transportation Institute

Welfare to Work: A Simulation of Land Use and Transportation Policies

 

Project Number: 2403


Principal Investigator: 

Robert A. Johnston. MTI Research Associate; Professor, Dept. of Environmental Science and Policy, UC Davis

Institution:
Mineta Transportation Institute
Telephone Number:
(408) 924-7560mti@mti.sjsu.edu

Project Objective:
This research is intended to support the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The goal of this law is to help welfare recipients transfer to work and become self-sufficient. It strictly limits the maximum time of public cash assistance at two consecutive years or five cumulative years.

 

To conform to the federal law, the California Department of Social Services enacted the California Work Opportunity and Responsibility to Kids (CALWORKs) program on January 1, 1998. From 1998 to 2001, the caseloads were reduced by 1.4 million. A survey done in 1998 and 1999 in the Bay Area showed that 90% of one-parent households and 94% of two-parent households that left welfare reported earnings from subsequent employment (MacCurdy, T., Marrufo, G., and O’Brien-Strain, M., 2003. What happens to families when they leave welfare? Public Policy Institute of California. Available at: http://www.ppic.org/content/pubs/R_903TMR.pdf ) At the state level, the results were not so optimistic. In 1998 and 1999, 41.7% of adults on welfare were employed. In contrast, only 12.2% and 15.3% of case closures were attributed to increased earnings, and only 3.1% and 3.5% of case closures were attributed to new employment (California Department of Social Services (CDSS), 1999. CalWORKs Characteristics Survey. Available at: http://www.dss.cahwnet.gov/q51804/publications/pdf/Updated%20PDF%20CalWORKS%2099.pdf).

 

These data suggest that there is great variation in the rate at which welfare recipients transfer to self-sufficiency across counties within California. It is possible that this wide variation in success is due to in part to differences in the spatial distribution of low-income residences, low-skill jobs, and connecting transportation networks in each region. As we show below, there is evidence that in some urban regions welfare recipients are located far from relevant employment and that in other regions they are not.

.

Abstract:

Sacramento County has the fourth highest number of welfare cases of all counties. Table 1 gives the caseload in different years. Although the total caseload decreased 34% since 1997, the rate of decrease slowed in recent years. There seems to remain a somewhat smaller, but more difficult number of recipients, even though the actual individual recipients change over time. Therefore, it is important to understand this group of recipients and its relationships with neighborhood characteristics, the location of relevant employment, land use policies affecting apartment construction, and transportation policies affecting transit service. If these relationships can be determined, statistically, we can then recommend policies to reduce unemployment for welfare recipients.

 

Table 1 CalWORKs Caseload in Sacramento County

Year

1997

1998

1999

2000

2001

2002

Caseload

40560

37795

32927

29649

27769

26881

 

 

 

PROPOSED WORKSCOPE

 

The Sacramento region travel model will be used to evaluate several policies to improve job access for welfare recipients in Sacramento County. The team will examine policies for better transit, subsidized auto purchases, and more multifamily zoning in suburban areas, and determine through analysis whether these policies would provide employment opportunities for welfare recipients.

 

1. Location choice model

Compared with job locations, the residential locations of welfare recipients are highly dynamic (Niemeier, D. and Sumpter, M., 2000. Transportation Needs of Sacramento County Welfare Recipients. University of California at Davis, Inst. of Transportation Studies. Rept. UCD-ITS-RR-2000-2). The traditional methods that map the locations of recipient residences and relevant jobs based on cross-sectional data are static. The spatial correlations of the residences and jobs at one time point may not be suitable for extrapolating the spatial correlations of future welfare recipients.

 

The team will use two ways to describe the residential location choice. The first way is to predict the neighborhoods with affordable rents. We assume welfare recipients, no matter what races they are, have few options, due to the fact that they have lower incomes than the average poor. They must live where they can afford the rent. The neighborhoods with the lowest rents will most probably be preferred by welfare recipients. The team will use factor analysis and regression analysis for this analysis.

 

The second way is to build a multinomial logit model. In this model, the dependent variable is the probability of a welfare assistance household choosing a neighborhood to live in and the explanatory variables will include socioeconomic characteristics of the neighborhood (census tract or block group) and neighborhood characteristics including access to jobs.

 

Description and Project dates:

 

Task One:

Literature review: July 2005 – August 2005


Task Two:
Enter census data for block groups. Complete coding of welfare recipient database. September 2005 –  October 2005

 

Task Three:
Map the residences of welfare recipients and map all jobs and entry-level jobs.  November 2005 – January 2006

 

TaskFour:
Estimate logit models of welfare recipient residential location and regression models for low-rent housing.  February 2006 –

March 2006

 

Task Five:

Complete land use and transportation policy simulations with SACMET02 . April 2006 –

June 2006

 

Task Six:

Draft and submit final report to MTI. July 2006

 


Following submission of the draft final report, the following actions will occur:
Copyedit and preparation of Peer Review Draft
Peer Review and Author’s Response
Final Editing and Pre-Publication
Printer’s Blue line Proof and Final Print
The estimated time for these to occur will be no less than two months. Final publication and Web posting: October 2006

Total Budget: $52,722

Principal Investigator:

Robert A. Johnston. MTI Research Associate; Professor, Dept. of Environmental Science and Policy, UC Davis

 

Team Members:

Member:

Dr. Michael Pogodzinski. MTI Research Associate; Professor, Dept. of Economics, SJSU

 

Students:

Shengyi Gao, UC Davis, SJSU Student, TBD

Technology Transfer Activities:
Upon publication, pdf and html versions will be available on the Mineta Transportation Institute web site. The project experience and data will be available for community meetings. Authors are encouraged to submit articles based on the research to relevant journals and to present the information to end-users at conferences,

 

Potential Benefits of the Project:

The priority of CALWORKs is to help welfare participant find jobs and retain jobs. Transportation is reported to be the biggest barrier for the welfare recipients to access job opportunities and other activities, given current residential and job distribution patterns. The geographic barriers between residences and jobs can be removed through either adding apartment zoning in neighborhoods with large numbers of entry-level jobs, or by building efficient transit, or by subsidizing auto ownership. The land use policy will lower the living costs and travel costs and expose welfare recipients to job opportunities. The transportation policy will increase welfare recipients’ job accessibility..

 

.

 Key Words: Advocacy groups; Employment; Transportation disadvantaged persons; Transportation planning