Yeah I suggest you actually read the report, you are wrong on every count.
And yes, most people are on assistance for less than four months at a time, however they are on it for less than five years total.
No matter how you cut it, rudeguys claim, "society has made welfare a lifetime source of easy income", is false.
Here is some of the data I could find.
These 2 graphs are from 1999, but so is your paper so it seemed more relevant.
http://webarchive.urban.org/publications/310548.html
And there is this.
http://www.washingtonpost.com/wp-srv/politics/special/welfare/stories/welfare052799.htm
Antipoverty advocates, however, point to evidence that many former welfare recipients are struggling to make ends meet. The GAO report shows that many of the jobs they obtain are short-lived, the majority are low-paying and between 19 percent and 30 percent of the people who leave welfare find it necessary to return to the rolls.
Now, the paper you linked to was about dependency. That is why in the very first sentence it says "The welfare indicators act of 1994 requires the department of health and human services to prepare annual reports to congress on indicators and predictors of welfare dependence."
It does not look at long term return rates. If you think it does, please show me where. I have linked relevant data from the time that your paper was made. So how was what I said wrong?