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HRD-88-9 1 (1987-11-04)

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Chapter 3
Comiparison of AFDC Family Incomes With
Poverty Line and Other Groups


Figure 3.2: Among Three Welfare
Groups, AFDC Families Exceed Poverty
Thresholds Least Often, April 19848


100  Percent of Families Above Poverty Thresholds


60,


30
20
10


     AFDC   Single Married
            Parents Couples
Note: Single-parent and married couple households receive welfare-but neither AFDC nor SSI. They
contain from 2 to 4 members. Figures reflect national data. Inkind benefits are valued using market
technique.

aSingle-parent and married-couple families received welfare, but not AFDC or SSI. All families contain
two to four members. Figures reflect national data. In-kind benefits are at market value.


How AFDC Family
Incomes Compare
With Incomes of
Single-Parent Families
Not Receiving Welfare


Studies show that single-parent families, as a group, have considerably
lower incomes than married-couple and elderly families. To make our
comparison, we used national data and selected single-parent families
with three or fewer children who were not receiving any form of wel-
fare. There were about 3.1 million of these families in April 1984.4

The average monthly pretax income, at market value, of the nonwelfare
families was $1,709 (not including a value for employer-provided bene-
fits, such as health care or pensions). If Medicaid is not included in AFDC
family incomes, their average monthly income is $667, or $1,042 less
than nonwelfare families. Fifty percent of the nonwelfare families had
average monthly incomes between $1,039 and $2,137. Further, nonwel-
fare families derived most of their income from earnings, but also



4rhe Census Bureau's Survey of Income and Program Participation (SIPP) contains information on 15
of the largest welfare programs.


GAO/HRD.W&9 AFDC Family Incomes


Page 35

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