Welfare Reform and Health among the Children of Immigrants

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1 Welfare Reform and Health among the Children of Immigrants Ariel Kalil, Ph.D. University of Chicago Harris School of Public Policy Studies 1155 East 60 th St. Chicago, IL (ph) / (fax) a-kalil@uchicago.edu Kathleen M. Ziol-Guest, Ph.D. Harvard University Harvard School of Public Health Dept. of Society, Human Development, and Health Landmark Center West, Room 445-B 401 Park Drive Boston, MA (ph) / (fax) kziol@hsph.harvard.edu March 26, 2007 Support for the first author was provided in part by a Changing Faces of America's Children Young Scholars Award from the Foundation for Child Development. Support for the second author was provided by the Robert Wood Johnson Foundation Health & Society Scholars program. Paper prepared for the University of Kentucky Center for Poverty Research Conference Ten years after: Evaluating the long-term effects of welfare reform on work, welfare, children, and families April 12-13, 2007.

2 Abstract Using data spanning a 10-year period ( ) from multiple panels of the Survey of Income and Program Participation, this study investigates the health of low-income young children of immigrants versus natives over the period spanning welfare reform. Health is assessed with two indicators, including parent reports of children s physical health and postponement of medical care in the household. First basic over-time differences in children s health and family medical care postponement between low-income children of immigrants (who are further distinguished by the parents citizenship status) and natives are examined. Next we test whether these differences are more pronounced following welfare reform. Given that virtually all of the children included here are native-born, and hence, citizens, significantly worse levels of their health compared to natives, especially if these gaps are more pronounced following welfare reform, provide some evidence to support the chilling effect hypothesis. This hypothesis posits that welfare reform has had the unintended consequence of impeding eligible immigrants access to public programs due to fears and/or misunderstandings concerning the ramifications of using government benefits in the post-prwora era. Our findings show that young children of non-naturalized citizens were adversely affected in the post welfare reform period in having an increased risk of poor health and an increased likelihood of living in a household experiencing postponement of necessary medical care. 1

3 Introduction The 1996 federal welfare reform law introduced, among other things, broad restrictions on immigrants eligibility for many health and social service programs, including cash welfare assistance (TANF), food stamps, and subsidized health insurance. Caseloads for welfare and other benefit programs have fallen dramatically in the wake of welfare reform (Blank, 2002), but the declines have been steeper for immigrants than for native-born citizens (Fix & Passel, 1999) even when immigrant families remain eligible for assistance. Indeed, most (80%) children in immigrant families, having been born here, are U.S. citizens, and are therefore eligible for government assistance on the same basis as all other U.S. citizens (Hernandez, 2004). This phenomenon, which has been called the chilling effect, is thought to reflect immigrants confusion about their eligibility for assistance or their fear that benefit use will adversely affect their chances for citizenship or even their opportunities to reenter or stay in this county (Capps, 2001; Darnell, Murdock, Lee, Kenney, & Cyprien, 2000; Fix & Passel, 1999). For example, parents who are not citizens may not be aware of their U.S.-born children s eligibility for important benefits or may face other administrative barriers to accessing programs after leaving welfare. This is a particular problem among low-income parents with low education, as this population has a high proportion of non-citizen parents (Hernandez, 2004). Few studies have examined how children s health has fared over time among the children of immigrants versus natives and whether welfare reform might have modified these trends (but see Kaushal & Kaestner, 2007, for an important recent exception). Using data spanning a 10- year period ( ) from multiple panels of the Survey of Income and Program Participation (SIPP), this study investigates the health of low-income young children of immigrants versus natives over the period spanning welfare reform. Health is assessed with two 2

4 indicators, including parent reports of children s physical health and access to care. We first examine basic over-time differences in children s health between low-income children of immigrants (who are further distinguished by the parents citizenship status) and natives. Given that virtually all of the children we examine here are native-born, and hence, citizens, significantly worse levels of their health compared to natives, especially if these gaps are more pronounced after welfare reform, provide some evidence to support the chilling effect hypothesis. This study is the first, to our knowledge, to use the SIPP to examine the impact of welfare reform on children s health (by taking advantage of the little-used child health and wellbeing modules that appear in each SIPP panel), and one of only a handful of studies that has examined the impact of welfare reform on the children of immigrants. Background Immigrants and Welfare Reform Children of immigrants 1 are an important component of the U.S. population. They are the fastest growing segment of the US population under age 15 and comprise 20% of all American children (25% of children under age 6; Hernandez, 2004). When considering immigrant children s use of federal programs, it is important to note that most (75%) children of foreign-born parents were themselves born in the U.S. and are therefore citizens. Indeed, this is true for 93% of immigrant children younger than age six (Capps, Fix, Ost, Reardon-Anderson, & Passel, 2004). As such, they are as eligible for public assistance as any native-born child of native-born parents. These mixed-status families those with citizen and non-citizen members represent a substantial segment of the population, comprising about 10% of all families with children. 1 Throughout this paper, we refer to the children of immigrants as those children, both native and foreign-born, who have at least one foreign-born parent. 3

5 The children of immigrants have received relatively little attention in the welfare reform research literature; however, there are several reasons to expect that their experiences post-1996 have differed in important ways from the experiences of children of U.S.-born parents. Above all, immigrants were the target of many of the most stringent federal reforms under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) (although many key federal features were later repealed at states discretion). Prior to the reforms enacted in 1996, legal immigrants and their children were generally eligible for public benefits under the same terms as citizens, and eligibility for assistance was set at the federal, rather than the state, level (undocumented immigrants, in contrast, have never been eligible for public programs in most states, with the exception of emergency Medicaid and public health services (e.g., vaccinations; see Fix & Haskins, 2002, for an overview)). However, by the late 1990s, immigrant families faced a vastly different policy environment one marked by a confusing and ever-changing set of rules concerning their eligibility to access social institutions and public assistance (Zimmerman & Tumlin, 1999). For the native-born/citizen population, the key features of welfare reform were: 1) increased work requirements as a condition of benefit receipt and 2) time limits on lifetime receipt. Making the safety net much more temporary, with the expectation that most families would be able to work their way off of welfare, and in the healthy economy of the 1990s, many families did just that. At the same time, the federal welfare reform law also introduced broad restrictions on immigrants eligibility for many health and social service programs, including cash welfare assistance (TANF), food stamps, and subsidized health insurance. In determining eligibility, the reforms distinguish between qualified and non-qualified (though often legal) 4

6 immigrants and between those who arrived pre-enactment versus post-enactment (i.e., before and after August 22, 1996). More specifically, PRWORA stipulated that the only individuals entitled to federal public benefits were U.S. citizens and other qualified individuals (who included lawful permanent residents (i.e., those with green cards ) who had 10 years of Social Security earnings, refugees during their first few years in the U.S., and non-citizens who had or were serving in the U.S. military). Immigrants who entered the U.S. after PRWORA went into effect were barred completely from receiving programs for their first five years in the United States, after which eligibility is a state option. Individuals already present as of August had to demonstrate that they met the criteria (i.e., that they were qualified ) or have their federal public benefits cut off (with the exception of emergency Medicaid 2 and public health services). PRWORA originally also made most legal immigrants already residing in the U.S. ineligible for food stamps and SSI until they attained citizenship. Second, the new federal laws formalized the policies stipulating that undocumented immigrants and other non-qualified immigrants were ineligible for most state and local public benefits, although it allowed states to develop their own policies concerning the eligibility of qualified immigrants. Third, new deeming policies were put in place in 1996, such that every new immigrant arriving in the U.S. must have a sponsor who will sign an affidavit of support. The sponsor s income and/or resources are typically included in determining the immigrant s eligibility for public assistance. In theory, sponsors can be sued if they fail to fulfill their pledge to support their immigrant family member. The 1996 reforms expanded the deeming provisions to more 2 The definition of emergency Medicaid was not changed from the previous definition as treatment only for medical conditions with acute symptoms that could place the patient s health in serious jeopardy, result in serious impairment to bodily functions, or cause dysfunction of a bodily organ or part. 5

7 federal programs, including food stamps, public health insurance, SSI, and TANF cash assistance. Moreover, the term for which deeming applies was extended and remains in effect until the immigrant naturalizes or provides evidence of 10 years of employment in the U.S. Finally, the 1996 legislation, through PRWORA and the 1996 Illegal Immigrant Reform and Immigrant Responsibility Act (IIRAIRA), increased state and local involvement in immigration enforcement. Importantly, the 1996 reforms limiting immigrant eligibility for government assistance were predicated on projected savings. According to one estimate, denial of benefits to noncitizen and newly arriving immigrant families was expected to result in 44% of the net savings of PRWORA (Congressional Budget Office, 1995; Singer, 2001). Some of the most stringent repeals of assistance in the federal law were later reinstated and others were mitigated by state policy options. The Balanced Budget Act of 1997 largely restored SSI and Medicaid eligibility to those pre-enactment immigrants who were receiving benefits prior to 1996 (even if they did not meet the new definition of a qualified individual), and the Agriculture Research, Extension and Education Reform Act of 1998 restored Food Stamp benefits to a small share of the 940,000 legal pre-enactment immigrants (primarily working-age adults) who lost benefits after 1996 (out of 1.4 million legal immigrants receiving food stamps in 1996; Carmody & Dean, 1998). These limited restorations primarily benefited about 200,000 immigrant children, elderly, and people with disabilities. At the state level, nearly every state has opted to provide Medicaid and TANF assistance to all pre-enactment legal immigrants, but there is wide state variation in the eligibility of post-enactment immigrants. Out of the seven states with the largest immigrant populations (CA, NY, TX, FL, IL, and NJ) only California 6

8 offers substitute programs in all three areas of health, nutrition, and cash assistance for postenactment immigrants (Weil & Finegold, 2002). Immigrants use of public assistance before and after welfare reform Historically, immigrant mothers have been less likely than US-born mothers to receive TANF, Food Stamps, or to have private health insurance (Fix & Passel, 1999; Padilla, Radley, Hummer, & Kim, 2004). However, given disproportionately higher levels of need, immigrants made up an increasingly larger percentage of the welfare caseload in the years leading up the 1996 reforms (Bean, Van Hook, & Glick, 1997; Borjas & Hilton, 1996). The literature on changes in public assistance receipt pre- and post- reform has primarily examined changes in the make-up of welfare caseloads, using standard difference-in-difference techniques. In general, these studies have suggested that non-citizens experienced a greater decline in their use of AFDC/TANF, SSI, Medicaid coverage, and General Assistance than citizens, even when immigrant families remain eligible for assistance (Borjas, 2003; Fix & Passell, 1999; Fix & Haskins, 2002; Haider, Schoeni, Bao, & Danielson, 2004; Ku & Blaney, 2000; Lurie, 2005; Van Hook & Balistreri, 2006). In other words, the differential drops in program use are surprising because they exceed the number expected to have been affected by (i.e., made ineligible by) the policy changes (Fix & Passel, 1999). For example, between 1996 and 2001, non-citizen participation in TANF dropped from 12.3% to 8.0%, and from 7.1% to 3.7% in the Food Stamp program; Food Stamp participation by citizen children with a noncitizen parent dropped 75% between 1994 and 1998 (Fix & Passell, 1999). Following PRWORA, eligible children of immigrant non-citizens experienced more persistent and higher levels of food insecurity than the children of citizens, and this in part reflects their lower rates of Food Stamps participation (Van Hook & Balistreri, 2006). 7

9 In general, research has shown that welfare leavers are at high risk for having no health insurance (e.g., Garrett & Hudman, 2002); this difference may be more pronounced among immigrants. It has long been recognized that, conditional on eligibility, immigrant families are less likely to receive Medicaid than native families (Currie, 2000); in 2000, 25% of citizen children with noncitizen parents lacked health insurance compared to 17% of children with citizen parents (Lessard & Ku, 2003). A significant decline in health insurance coverage as a result of welfare reform has also been documented for citizen children of foreign-born mothers in low-income immigrant families relative to citizen children with U.S.-born mothers (Kaushal & Kaestner, 2005). Lurie (2005) finds substantial declines in insurance coverage among citizen children of non-permanent residents (but not the citizen children of permanent residents) between , which suggests that parents with more precarious immigration statuses may be the most reluctant to take up programs in the wake of welfare reform (i.e., it is likely that a large share of the non-permanent residents are in fact undocumented), despite their children s eligibility. In 1997, Congress passed the State Children s Health Insurance Program (SCHIP), which increased funding over ten years to expand health insurance coverage for children in poor and near-poor families. While data show some decline in the number of uninsured children, Latino children remain more likely than other children to be uninsured and face other barriers to the health care system (Holahan, Dubay, & Kenney, 2003). What factors caused the differential decline in receipt? Several hypotheses are prominent in efforts to explain these differential patterns of receipt of assistance after welfare reform. The first, the so-called chilling effect maintains that immigrant families are reluctant to access public assistance, even if they or their children are eligible, because of confusion about eligibility and fear of the potential consequences for family 8

10 members (Fix & Passel, 1999; Shields & Behrman, 2004). Parents who are not citizens may not be aware of their U.S.-born children s eligibility for important benefits. A number of qualitative studies suggest that immigrant parents may believe that seeking assistance for their eligible children will jeopardize their children s citizenship status or hinder other family members efforts to obtain citizenship or legal status or their ability to re-enter and stay in the U.S. (Capps, 2001; Fix & Passel, 1999; Maloy, Darnell, Nolan, Kenney, & Cyprien, 2000; Schlosberg, 1998; Yoshikawa, Lugo-Gil, Chaudry, & Tamis-LeModa, 2005). One survey of low-income immigrants in New York City and Los Angeles in 1999/2000 found that half of the respondents answered two-thirds or more of the questions about eligibility incorrectly (Capps, Ku, & Fix, 2002). Other research suggests that some immigrants believe that receipt of benefits will result in their being labeled a public charge and prevent them from obtaining a green card, reentering the country or reuniting with relatives (Center for Budget and Policy Priorities, 2000). Some local area studies indicate that some immigration lawyers continue to advise their clients not to use public benefits to avoid this concern (Capps, Koralek, Lotspeich, Fix, Holcomb, & Anderson, 2004; Schlosberg, 1998). In actuality, the specifics of the policy make it very unlikely that receipt of public benefits would affect an individual s ability to gain citizenship or act as a sponsor for new immigrants (National Immigration Law Center, 1999). A second hypothesis is that immigrants and natives have displayed different responses to the economy (Haider et al., 2004; Kaestner & Kaushal, 2005). Studies of welfare participation among the general population conclude that the robust economy of the 1990s contributed partially to the large (and rapid) declines in welfare caseloads following the 1996 reforms (e.g., Blank, 2002; Currie & Grogger, 2001). Immigrants and natives may face different economic conditions or may respond differently to similar economic conditions (Kaestner & Kaushal, 9

11 2005). Because lower-skilled workers are often the first affected by changes in the business cycle (i.e., first to lose jobs during a downturn and first to enter the labor market in strong economy; Solon, Barsky, & Parker, 1994) immigrant workers may have been particularly sensitive to the improving economy during this period (Kaestner & Kaushal, 2005). Indeed, onefifth of America s job growth in the 1990s has been attributed to immigrants (Capps, Fix & Passel, 2003). Moreover, unemployment dropped faster among immigrants than natives during the 1990s, although wages grew more slowly (Fix, Zimmerman & Passel, 2001). Haider and colleagues (2004) suggest that much, but not all, of the decline in welfare participation among immigrants is accounted for by their experience of larger gains in employment and earnings. Lofstrom & Bean (2002) report similar findings. However, sensitivity analyses by Haider and colleagues (2004) that distinguish groups based on citizenship rather than nativity indicate that declines in AFDC/TANF, Food Stamps, and SSI remain significantly larger for non-citizens, even after controlling for macroeconomic conditions. These results suggest that some groups of immigrants may have been substantially affected by the reforms. A third hypothesis relates to increased rates of naturalization noted during the 1990s (Borjas, 2000; Fix & Haskins, 2002) as one contributor to the decline in immigrant caseloads. That is, changes in eligibility for assistance may have induced families to seek citizenship. Van Hook (2003) uses the Survey of Program Dynamics to show that much of the relative decline in welfare usage among noncitizens can be explained by shifts in naturalization. However, similar to Haider et al., she finds evidence of possible vulnerability among non-citizen immigrants, reporting that half of the decline in welfare receipt among pre-enactment immigrants is not accounted for by naturalization trends. 3 3 In order to naturalize, an immigrant is required to reside in the U.S. for 5 years, to pass a civics test, and to be able to speak, read, write, and understand the English language. In addition, the INS reviews the naturalization 10

12 What are the effects on children s development? Very few studies have examined directly what the reforms and subsequent patterns of welfare use have meant for immigrant children (Lichter & Jayakody, 2002). The literature on welfare reform has suggested that, in general, welfare-leaving has had few associations, positive or negative, with child well-being (Kalil & Dunifon, 2006). However, such average effects mask substantial heterogeneity among low-income families. Leaving welfare and other programs has been viewed as an indicator of positive adjustment among immigrants (e.g., indicating an ability to integrate into the American economy Borjas, 1998, 1999; Camarota, 2001). On the other hand, those concerned with possible chilling effects reason that immigrants who are able to continue to access public resources are better off than those otherwise eligible immigrants who do not. How might welfare reform be differentially associated with child well-being for the children of immigrants versus natives? First, to the extent that the chilling effect is real, then it is reasonable to assume that low-income immigrants make lesser use of programs for which they are eligible than do their native counterparts. Lack of knowledge about, or reluctance to engage in, public programs may limit access to important services and this could adversely affect children s health and well-being. Such barriers to participation could stem from individuals own beliefs and knowledge about services, or could also arise from the proliferation of misinformation on the part of agency staff (Maloy et al., 2000). Of course, any observed differences in children s health could be a result of selection. Low-income immigrants could differ from their native counterparts in myriad ways, both applicant s history and method of immigration. If any irregularities appear, the individual may not only be denied naturalization but may face deportation. INS policy also requires an affirmative clearance from the FBI before an individual can be sworn in as a citizen. Assuming that an immigrant is qualified for naturalization, the wait until citizenship is granted is likely to be a year or more (Mautino, 1999). 11

13 observed and unobserved. These differences could affect both why different types of parents make use of public programs and how they care for their children s health. For example, a parent who is disorganized, who cannot provide a safe home environment, or suffers from her own physical or mental health difficulties may be less likely to seek out assistance for her children, and this could also be reflected in the child s poorer health. We will use the pre- and post-august 1996 distinction as a natural experiment to better understand the causal impact of welfare reform on the children of immigrants. In other words, if gaps in health between lowincome immigrant children and low-income natives are significantly larger in the post-welfare reform period, this will give us more confidence that the policy has had an impact. The importance of early childhood Our study will examine the health of young children ages 6 and younger. We do this for two reasons. First, we cannot determine with absolute certainty in the SIPP whether all children of a foreign-born parent was him or herself born in the U.S (and hence a U.S. citizen eligible for public programs). However, this is likely to be true 93% of the time for children of foreign-born parents in this age group (Capps et al., 2004), giving us more confidence that we can identify chilling effects of welfare reform. Second, there is good reason to think that any deleterious effects of limited access to, or take-up of, public programs, especially if they correlate with economic hardship, will have more pronounced effects on the well-being of younger children (Duncan & Brooks-Gunn, 1997). A substantial number of studies document that family economic hardship has relatively more deleterious effects on preschool age children, especially among children in families with low incomes, compared to those in middle childhood or adolescence (Duncan & Brooks-Gunn, 1997; Duncan, Yeung, Brooks-Gunn, & Smith, 1998). For young children of immigrants, a lack of connection to child care programs or school-based 12

14 health services could also exacerbate problems accessing health services through government assistance programs; on average, young immigrant children are less likely to be enrolled in early education and after-school programs, compared to their native counterparts (Nord & Griffin, 1999; Takanishi, 2004). Preschool-aged children are also less verbal and may be less fluent in English than older children. Focus of the present study The developmental literature on the effects of recent welfare policy changes on children (see e.g., Morris, Duncan, & Gennetian, 2005; Kalil & Dunifon, 2006) has had little to say about the well-being of young children in immigrant families. The literature on the effects of welfare reform on immigrant families has come primarily from the fields of economics, public policy, and sociology and has rarely examined effects on child well-being. Kalil and Crosby (2007) show that children of immigrant welfare leavers in Chicago fare significantly worse, in terms of their post-welfare health, than their peers in either native leaver families or immigrant families who continued to receive assistance. Kaushal and Kaestner (2007) report that welfare reform is associated with an increase in the proportion of low-educated foreign-born single mothers reporting delays in medical care or foregoing care due to cost, but no impact on health insurance, medical care utilization, or health of these mothers children. The present study bridges various disciplines and seeks to contribute to the literatures on the impact of welfare reform on children as well as that of welfare reform and immigrants. Method Sample Data are drawn from the 1993, 1996, and 2001 panels of the Survey of Income and Program Participation (SIPP). The SIPP, which is conducted by the Census Bureau, is a 13

15 nationally representative sample of households whose (non-institutionalized) members are interviewed at 4-month intervals (each interview is considered a survey wave). Each survey wave, the core, collects information on demographic characteristics, labor force participation, program participation, amounts and types of earned and unearned income received, and private health insurance from each individual in the household over the age of 15 (adult population). Other questions, collected as part of the topical modules, produce in-depth information on specific subjects and are asked less frequently. This study uses data from both the core as well as several topical modules. The SIPP uses rotation groups to field the survey, where a group is a random sub-sample of the full survey population of approximately equal size. Each month the members of one rotation group are interviewed, and thus over the course of four months all rotation groups are interviewed. The 1993 panel was first administered in February 1993, thus 25 percent of the respondents were interviewed in February, March, April, and May. The 1996 panel was first administered in April 1996, and the 2001 panel in February The sample for our study is limited to low-income households (less than 200% of the poverty threshold for the family size) where a child under the age of six resides. These restrictions are imposed so that we have a sample most likely to be affected by welfare reform, and also so that we are as likely as possible to have a sample of young children who were born in the United States (and thus are themselves citizens). Children are categorized according to the citizenship status of their parents. We allow children to be added (born into) sample families within SIPP panels (these children are given the existing citizenship status of the family; defined below), and children may contribute multiple observations within panels if they meet the age and income criteria for multiple waves. 14

16 In addition, all mothers in our study sample were required to be living in the U.S. prior to In other words, we do not allow our sample to include any post-enactment arrivals who faced a very different policy environment than pre-enactment immigrants (and may also be a very different type of family than one who arrived in the U.S. prior to 1996). Given the construction of our sample, we thus have a relatively conservative test of the chilling hypothesis insofar as all households experienced the pre-reform environment as well as the public discussion and enactment of the reforms. Dependent Variables Children s health. The mother assessed the health of each child within the household as excellent, very good, good, fair, or poor. In 1993 these questions were posed in Waves 6 and 9, in 1996 in Waves 3, 6, 9, and 12, and in 2001 in Waves 3, 6, and 9. All data from the 1993 panel comprise our pre-reform observations (Waves 6 and 9 of the 1993 SIPP were fielded between October 1994-January 1995 and October 1995-January 1996, respectively); all data from the 1996 and 2001 measures comprise our post-reform observations (Waves 3, 6, 9, and 12 of the 1996 SIPP were fielded in August-November of 1996, 1997, 1998, and 1999, respectively). Responses originally ranged from one to five with a higher value indicating poorer health. This variable is recoded to indicate poor health in the regression analyses. Following Currie and Stabile (2002), if the mother stated that the child is in good, fair, or poor health they are coded as in poor health. Doctor visit postponement. The household reference person is asked about postponement of medical care at the household level. Specifically, he or she is asked if in the past 12 months there has been a time when someone in the household needed to see a doctor or go to the hospital but didn t go. This question is asked once in each SIPP panel, specifically in Wave 9 of 1993, 15

17 Wave 8 of 1996, and Wave 8 of Data from 1993 SIPP comprise our pre-reform observation; all others are our post-reform observations. This variable is a dichotomous variable representing whether or not someone in the household had to postpone care. Independent Variables Citizenship. Children s immigrant status is obtained via the parents in the Wave 2 Migration Topical Module for each panel. The Migration module is administered to household members who are 15 or older, thus children are classified according to the status of their parents, specifically distinguishing between several groups: children who have native-born (citizen) parents, children whose parents are naturalized citizens, and children who have non-citizen parents. 4 Children who reside with only one parent are classified according to the citizenship status of the resident parent. The majority of non-resident parents are not interviewed, and thus their citizenship status is not known. Children who reside with two parents are classified according to the citizenship status of both parents in the following way: (1) if both parents have the same status the child is classified that way, (2) if one parent is a naturalized citizen and the other parent is native-born the child is classified as the child of naturalized citizen parents; and (3) if either parent is a non-citizen the child is classified as the child of not naturalized parent. Control variables: children s characteristics. We control for three child demographic characteristics (age, gender, and race) and one measure of health insurance status in the children s health analyses. Age is measured as a continuous variable measured in years at the time of assessment. Gender is measured as a dichotomous variable (boy is omitted). Race is measured as four mutually exclusive variables: white, black, Hispanic, and other (white is 4 Information on permanent resident status was not part of the Migration module in the 1993 SIPP panel, thus this distinction is only permitted in the 1996 and 2001 covering the post welfare reform years Because of this and small sample sizes this distinction will not be made in the analysis. 16

18 omitted). Finally, whether or not the child was covered by any health insurance at the time of assessment is controlled (no insurance coverage is omitted). Control variables: household characteristics. We control for several demographic characteristics of these households in all analyses. First, the age of the mother measured is entered as a continuous variable. Second, we control for the educational attainment of the child s mother with three dichotomous variables: not a high school graduate, a high school graduate, and more than high school (high school graduate is omitted). Mother s employment is measured with three dichotomous variables representing her work status in the month during which the outcome is measured. Mothers are classified as being (a) out of the labor force (i.e., not working and no time on layoff or looking for work); (b) in the labor force with no periods of unemployment in that month; or (c) in the labor force with some periods of unemployment in that month. Finally, mother s marital status captured with four mutually exclusive dichotomous variables: married, widowed, divorced/separated, and never married (omitted). Household composition is assessed with two different variables. The first measure is the total number of children under the age of 18 residing in the household. The second measure is the total number of adults residing in the household, which can include own children who are older than 18. We also control for home ownership (coded 1 if yes, 0 otherwise) and we control for the log of monthly household income averaged over the four months prior to the interview (in $2005). Finally, all analyses include the state-level unemployment for the year in which the interview was administered. 17

19 Results Sample Description Table 1 presents the weighted means and standard deviations of all variables in the analysis for the total sample, as well as by citizenship status. On average children in these families are three years of age with equal numbers of boys and girls. Forty-six percent of the children are White, 23 percent Black, and 27 percent are Hispanic. Among the children of notnaturalized immigrants, 56% are of Mexican descent (data not shown). In contrast, among the children of naturalized citizens, only 25% are of Mexican descent (data not shown). The majority of these low-income children are covered by some health insurance. On average mothers are 30 years old and have no more than a high school degree, do not work, are married, and do not reside in homes that are owned. The average monthly income for these families is $1,800 (in $2005). Children s Health Outcomes Table 1 also presents the prevalence of poor health among children and postponement of doctor and hospital care among families. Nineteen percent of these low-income children are rated in poor health by their mothers. Eleven percent of families reported having to postpone medical care in the previous year. These statistics differ depending on immigrant status: children of non-naturalized parents are more likely (24 percent) than children of both native and naturalized parents (18 percent in each case) to be in poor health. Recall that our definition of poor health includes children rated by their mothers as in good, fair, or poor health. In actuality, very few children are rated in poor health (1% or fewer in each of the three groups; data not shown) or even in fair health (3% or fewer across groups; data not shown). Thus, our measure should be thought of as distinguishing children who are only in good health from 18

20 those who are in very good or excellent health. Approximately 11 percent of families postponed medical care; for natives, naturalized citizens, and non-naturalized citizens these figures are 11%, 6%, and 12%, respectively, on average across time. Table 2 presents the weighted descriptive statistics for several control variables as well as the weighted proportions of the two outcome measures and a selected number of the control variables by citizen status and whether or not the child was assessed before or after welfare reform. There are several interesting differences to note. In the post-reform period, fewer native mothers have less than a high school education and more have post-secondary education. In contrast, immigrants (naturalized and non-naturalized) in the post-reform period are slightly less educated than their pre-reform counterparts. Post-reform, native mothers are more likely to work, but the same is not true of immigrant mothers. Mothers in all three groups are more likely to be married in the post-reform era than their counterparts in the pre-reform era. All children, on average, are in worse health following welfare reform. Descriptive differences (not reported in the tables) suggest that the changes in children s health are being driven by fewer children being reported in excellent health and instead being reported in merely good health (data not shown). In other words, we do not see a large increase in the number of children who are reported in fair or poor health on the original 5-point scale. Naturalized as well as not naturalized immigrant families are more likely to postpone medical care following welfare reform compared to similar naturalized and not naturalized immigrants before welfare reform. Figure 1 presents the weighted proportions of children in poor health by immigrant status over time, whereas Figure 2 presents the weighted proportion of households where the reference person reported someone postponed medical care by immigrant status over time. Both figures 19

21 suggest that not naturalized children and families experience increases in poor health and medical care postponement over the study period compared to native children and families. Regression Analyses Two separate regression models will be estimated for both of the child health outcomes, (1) designed to understand basic differences in children s health between low-income children of immigrants and natives, and (2) designed to examine whether differences in children s health are more pronounced after PRWORA. First, regression models will be estimated to determine if low-income children of immigrants differ on the health outcomes compared to low-income children of natives. Specifically, we estimate the following equation: (Eq 1) h = a1 + a2natural + a3notnatural + a j X where h is the children s health outcome, Natural equals 1 if the child s parents are naturalized citizens, NotNatural equals 1 if the child s parents are not-naturalized citizens (natives are the omitted group), X is a vector of demographic characteristics of the child and the household, and a are the estimated coefficients. Second, we use a difference-in-difference strategy to estimate the effect of welfare reform on children s health, specifically examining whether or not assessment prior to welfare reform and after welfare reform and citizenship status of the child s parents are associated with differences in health. Specifically we will estimate the following equation: (Eq 2) h = b 1 + b Post + b Natural + b NotNatural + b Post * 6 Natural + b Post * NotNatural + b where h is the children s health outcome, Post equals 1 if the child assessment occurred following welfare reform, Natural equals 1 if the child s parents are naturalized citizens, NotNatural equals 1 if the child s parents are not-naturalized citizens (natives are the omitted group), X is a vector of demographic characteristics of the child and the household, and b are the j X 20

22 estimated coefficients. These models will be estimated using Ordinary Least Squares (OLS), and the coefficients of interest are b 5 and b 6, which indicate whether the difference in the health outcome being measured for the children with naturalized or not naturalized parents between children assessed before and after welfare reform is significantly different from the health outcomes among the children with native parents. Specifically b 6 estimates {(h Post,NotNatural - h Post,Native )-(h Pre,NotNatural -h Rre,Native )}, indicating the change in children s health due to welfare reform policies assuming that health did not change at different rates for other reasons. In all regressions, we correct for the non-independence of observations due to the presence of siblings and to children s contributing multiple observations within a panel. Children s health. Table 3 presents the findings from the analysis of children s health. Findings from Model 1 suggest several characteristics are associated with children s poor health, including immigrant status. White children are least likely to be reported in poor health. Children who have any health insurance are almost four percentage points more likely to be in poor health compared to children who are uninsured, which possibly reflects that parents are more likely to obtain health insurance coverage for sick children. Compared to children with mothers who are high school graduates, those with mothers with less than a high school diploma are in poorer health and those whose mothers have more than a high school diploma are less likely to be in poor health. Mothers who are divorced or separated are more likely to report their children in poor health compared to mothers who have never married. Home ownership and greater number of adults are both associated with better health for children. Results from this regression illustrate that, on average, children of non-naturalized citizens are more likely to be poor health (three percentage points) than children of native 21

23 parents. Children of naturalized citizens do not significantly differ from those of native parents, nor do they differ from non-naturalized citizens (not shown). Model 2 presents the estimation from the difference-in-difference analyses, and the majority of the demographic findings reported from Model 1 are also significant in Model 2. These findings also indicate that all children in the post welfare reform period are more likely to be in poor health than in the pre-reform periods, a difference of four percentage points. Moreover, the interaction term between non-naturalized citizen and the post welfare reform period indicate the probability of poor health is greater among children of non-naturalized citizens compared to children of natives after welfare reform than it was in the pre-reform period. The gap between non-naturalized citizens and natives in the post-welfare period is five percentage points larger than the pre-welfare gap. The pattern of results is similar if we use the original 5-point measure of child health as the outcome variable in a linear regression. Specifically, the interaction between non-naturalized citizen and the post welfare reform period is positive (recall that higher scores on the measure indicate worse health) and statistically significant (p <.03) whereas the interaction with naturalized citizen and the post welfare reform period is not (results not shown). Postponement of doctor or hospital care. Table 4 presents findings from the regression estimating Equations 1 and 2 for household medical care postponement. Because this outcome is only available once in each panel and is only reported at the household level it is conducted on individual households and does not control for children s characteristics, but rather only mother and household characteristics. Both Models 1 and 2 are statistically significant. Results from Model 1 suggest that maternal unemployment, being a widow, and health insurance are associated with a higher probability of postponement of medical care. Model 1 suggests that 22

24 there are no significant differences, on average, in postponement of care depending on immigrant status. The results shown in Model 2 show that, unlike in the model for poor health, there is no average impact of welfare reform on the likelihood of households postponing needed medical care. Model 2, however, illustrates that whereas both naturalized and non-naturalized citizen households were much less likely to postpone medical care than natives in the pre-reform period (recall, for example, the results shown in Table 2 indicating that in the pre-reform period, no naturalized citizen families postponed needed care), this pattern reverses after welfare reform. Non-naturalized citizen households increased postponement of necessary medical care by about nine percentage points relative to natives following welfare reform. Naturalized citizen households increased postponement of necessary medical care by an approximately similar amount, although this effect is measured imprecisely and is not statistically significant. Sensitivity tests In the SIPP, we can verify that a family arrived in the U.S. in 1995 or earlier. We impose this restriction in our sample selection so that all families are pre-enactment immigrants exposed to the same pre-reform policy environment. Especially if we make the assumption that the young children are U.S.-born citizens, it is reasonable to assume that the immigrant families do not have vastly different real access to benefits over time, given states decisions to provide Medicaid and TANF assistance to all pre-enactment legal immigrants as well as the restorations in the SSI and Food Stamps programs. However, an important limitation of the SIPP is the changing nature of questions over time in different panels that prevent us from reliably determining (or controlling for) the exact year of a family s arrival. It is quite possible that the 23

25 post-reform families we observe in 2001 have lived in the United States longer than the prereform immigrants we observe in 1993 and this may bias the results. It is not entirely clear, however, which the direction the bias would go in. If we think that additional years in the U.S. would yield higher social capital, greater English skills, and better information about policies and programs, we would expect our post-reform immigrants to be more advantaged, thus minimizing differences between them and natives over time. On the other hand, acculturation may bring unhealthy habits, such as American styles of eating that could result in worse health among the children of immigrants in the post-reform period relative to their counterparts in the pre-reform period. This would mean that our welfare reform impact is simply a reflection of a negative outcome of acculturation. One way we try to deal with this problem is to omit the 2001 panel from the analysis. Our post-reform families in the 1996 panel of the SIPP are thus only restricted in having had to arrive in at least the prior year (1995). They arguably could have been in the U.S. for as short (or as long) a time as their pre-reform counterparts in the 1993 panel and there is an equally good chance that their children were born in the U.S. When we limit the assessment of outcomes to this sample, we find the results are qualitatively similar with larger standard errors, which is expected given the big drop in sample size. For example, for the poor child health outcome, the coefficient on the interaction between post-reform * not naturalized citizen is.026, which is not statistically significant but is in the same direction and close in magnitude (about one-half the size) to the coefficient presented in Table 3. Similarly, for the postponement of medical care, the coefficient on the interaction between post-reform * not naturalized * is.083, which is close to.089 (Table 4) and is statistically significant. We therefore have more confidence that these results are not simply an artifact of differing lengths of time in the U.S. 24

26 Discussion Immigrants, especially those from Mexico and other Latin American countries, often arrive in the US with low levels of financial and human capital. At the same time, they tend to exhibit family forms (such as two-parent married household structures) and cultural values that may serve to promote children s well-being. It has been suggested that public assistance serves as a potentially important form of investment for immigrant parents in building their children s human capital (Hofferth, 1999; Balistreri, 2006; Van Hook & Bean, 2006). The current policy environment, however, operates to restrict immigrants access to federal health and welfare programs, particularly during their initial period of settlement in this country. Over the last decade, the general policy conversation surrounding welfare has shifted from a support system for unemployed parents to supports for low-income working parents. Immigrant families make-up a substantial proportion of the working poor, and children in immigrant families in general face more challenges to healthy development than their native counterparts. Reforms enacted during the mid 1990s served to exclude many immigrant families from the supports that low-income families often rely on to adequately care for their children, and there are suggestions in the literature that policy reforms may have created additional barriers for families in gaining access to the resources they need, even when they remain eligible for such programs. In line with prior work showing a greater decline in receipt of public programs over the period of welfare reform for immigrants versus natives, we found that the gap between lowincome children of non-citizens versus natives in terms of children s health and family s access to care widened from the pre to post-welfare reform period. The effects were sizeable. For example, a widening gap of 5.5 percentage points in children s poor health between the two 25

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