This study investigated the potential effects of welfare reform on children in late childhood through adolescence, examining how poverty status and family welfare receipt interacted with current poverty status and welfare receipt during adolescence to influence various outcomes. The study examined how 1998 outcomes varied for adolescents based on family income, maternal employment, patterns of parental welfare receipt in middle childhood and adolescence, and demographics. Data from the 1992 and 1993 Survey of Income and Program Participation (SIPP) were matched with data from the 1997 and 1998 interviewing years of the Survey of Program Dynamics (prior to the Personal Responsibility and Work Opportunities Reconciliation Act of 1996). Average income-to-needs ratio, parental education, and whether the adolescent lived the entire period in a two-parent family highly correlated with positive outcomes. Adolescent outcomes were not significantly affected when parents stopped participating in welfare programs. When income insufficiency was severe enough to affect diet adequacy, adolescents were affected on many important outcomes. School outcome variables, status offense/criminal behavior variables, and substance use/abuse were most sensitive to differences in income, program participation, and time and extent of parent employment. (Contains 45 references.) (SM)