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Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation under AFDC-UP

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Author Info
Hoynes, Hilary Williamson

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Abstract

This paper examines the effect of cash transfers and food stamp benefits on welfare participation and the labor supply of husbands and wives in two-parent families. The estimates are used to determine the magnitude of the work disincentive effects of the Aid to Families with Dependent Children Unemployed Parent (AFDC-UP) program, and to simulate the effects of changes in AFDC-UP benefit and eligibility rules on family labor supply and welfare participation. The results suggest that labor supply and welfare participation among two-parent families are highly responsive to changes in the benefit structure under the AFDC-UP program. Copyright 1996 by The Econometric Society.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 64 (1996)
Issue (Month): 2 (March)
Pages: 295-332
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Handle: RePEc:ecm:emetrp:v:64:y:1996:i:2:p:295-332

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Johnson, Terry R & Pencavel, John H, 1984. "Dynamic Hours of Work Functions for Husbands, Wives, and Single Females," Econometrica, Econometric Society, vol. 52(2), pages 363-89, March. [Downloadable!] (restricted)
  2. Fraker, Thomas & Moffitt, Robert, 1988. "The effect of food stamps on labor supply : A bivariate selection model," Journal of Public Economics, Elsevier, vol. 35(1), pages 25-56, February. [Downloadable!] (restricted)
  3. Moffitt, Robert & Wolfe, Barbara L, 1992. "The Effect of the Medicaid Program on Welfare Participation and Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 615-26, November. [Downloadable!] (restricted)
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  4. Rosen, Harvey S, 1978. "The Measurement of Excess Burden with Explicit Utility Functions," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages S121-35, April. [Downloadable!] (restricted)
  5. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
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