Alternative Measures of Economic Success among TANF Participants: Avoiding Poverty, Hardship, and Dependence on Public Assistance

Current debates about the success of TANF reforms have been obscured by the use of inconsistent indicators of success, as well as by measurement difficulties associated with alternative indicators. This paper considers conceptual and measurement issues associated with three different indicators of economic well-being: independence from public assistance, having income above the poverty threshold, and freedom from material hardship. Survey and administrative data from a sample of TANF participants illustrate the sensitivity of conclusions to alternative ways of measuring each indicator. Also considered is the extent to which dependence, poverty, and hardship coincide, or capture important differences in outcomes. The principles underlying TANF reforms have implications for appropriate measures of economic well-being, as the empirical importance of these implications demonstrates.