The Happiness of Single Mothers after Welfare Reform

U.S. welfare programs were transformed over a decade ago. The changes were life altering for those on welfare, or prone to be. What was the impact on happiness? Using data from the General Social Survey and World Value Survey, a Difference in Difference test is performed. Specifically, the change in single mothers’ happiness before and after welfare reform is compared to the change in happiness of four comparison groups. Welfare reform appears to increase happiness (predominantly by decreasing reports of low levels of happiness). The results are robust to various specification checks. Alternate explanations, e.g., the EITC expansion, are considered