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New analysis counters Shaefer’s finding that households living on $2/day/person rose post welfare reform

August 29, 2016

As reported in [their 2015 book](http://www.twodollarsaday.com/), Luke Shaefer and Kathryn Edin found that “the number of households living on $2 or less in cash income per person per day in a given month increased from about 636,000 in 1996 [first year of welfare reform] to about 1.65 million in mid-2011, a growth of 159.1 percent.” Using a similar analytic method with a different set of data, Scott Winship of the Manhattan Institute finds that the number of children living below the $2/day mark began to rise before, not after, welfare reform in 1996, suggesting that the reforms may have worsened rather than caused the trend.

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