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AFDC Benefits and Nonmarital Births to Young Women*

* This paper is a replication of an original study

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  • Saul D. Hoffman
  • E. Michael Foster

Abstract

Following recent work by Rosenzweig (1999), this paper reexamines the effect of Aid to Families with Dependent Children (AFDC) benefits on nonmarital childbearing through age 22. Unlike most previous work, Rosenzweig finds a statistically significant and quantitatively large positive AFDC effect. Using data from the Panel Study of Income Dynamics, we replicate his analysis and explore the reasons his findings differ from earlier research findings. We are able to reproduce his main finding in a model that includes state and cohort fixed-effects; we find that control for state effects increases the estimated AFDC effect. When we examine fertility separately by age, we find no AFDC effect on teen non-marital births, but a large effect on the behavior of women in their early 20s.

Suggested Citation

  • Saul D. Hoffman & E. Michael Foster, 2000. "AFDC Benefits and Nonmarital Births to Young Women," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 376-391.
    • Handle: RePEc:uwp:jhriss:v:35:y:2000:i:2:p:376-391
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    References listed on IDEAS

    as
    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
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    6. An, Chong-Bum & Haveman, Robert & Wolfe, Barbara, 1993. "Teen Out-of-Wedlock Births and Welfare Receipt: The Role of Childhood Events and Economic Circumstances," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 195-208, May.
    7. Greg Duncan & Saul Hoffman, 1990. "Welfare benefits, economic opportunities, and out-of-wedlock births among black teenage girls," Demography, Springer;Population Association of America (PAA), vol. 27(4), pages 519-535, November.
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    Replication

    This item is a replication of:
  • Mark R. Rosenzweig, 1999. "Welfare, Marital Prospects, and Nonmarital Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 3-32, December.

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