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Marriage and Economic Incentives: Evidence from a Welfare Experiment

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  • Wei-Yin Hu

Abstract

Can economic incentives be used to affect marriage behavior and slow the growth of single-parent families? This paper provides new evidence on the effects of welfare benefit levels on the marital decisions of poor women. Exogenous variation in welfare benefit incentives arises from a randomized experiment carried out in California that allows me to measure responses beyond simple year-to-year changes in benefit levels. I find that a regime of lower benefits and stronger work incentives encourages married aid recipients to stay married, but has little effect on the probability that single-parent aid recipients marry. The effects on married recipients become larger over time, suggesting that long-run effects may exist.

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  • Wei-Yin Hu, 2003. "Marriage and Economic Incentives: Evidence from a Welfare Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    • Handle: RePEc:uwp:jhriss:v:38:y:2003:i:4:p942-963
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    1. R. A. Moffitt & R. Reville & A. E. Winkler, "undated". "State AFDC rules regarding the treatment of cohabitors: 1993," Institute for Research on Poverty Discussion Papers 1058-95, University of Wisconsin Institute for Research on Poverty.
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    Cited by:

    1. Jean Knab & Irv Garfinkel & Sara McLanahan & Emily Moiduddin & Cynthia Osborne, 2008. "The Effects of Welfare and Child Support Policies on the Timing and Incidence of Marriage Following a Nonmarital Birth," Working Papers 898, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    2. Martin Halla & Mario Lackner & Johann Scharler, 2016. "Does the Welfare State Destroy the Family? Evidence from OECD Member Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(2), pages 292-323, April.
    3. Scott Hankins & Mark Hoekstra, 2011. "Lucky in Life, Unlucky in Love?: The Effect of Random Income Shocks on Marriage and Divorce," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 403-426.
    4. repec:pri:crcwel:wp07-10-ff is not listed on IDEAS
    5. Mark Hoekstra & Scott Hankins, 2007. "Lucky in Life, Unlucky in Love? The Effect of Random Income Shocks on Marriage and Divorce," Working Paper 329, Department of Economics, University of Pittsburgh, revised Jul 2010.
    6. Cygan-Rehm, Kamila & Kuehnle, Daniel & Riphahn, Regina T., 2018. "Paid parental leave and families’ living arrangements," Labour Economics, Elsevier, vol. 53(C), pages 182-197.
    7. Leonard M. Lopoo & Kerri M. Raissian, 2014. "U.S. Social Policy and Family Complexity," The ANNALS of the American Academy of Political and Social Science, , vol. 654(1), pages 213-230, July.
    8. Kamila Cygan-Rehm & Daniel Kühnle & Regina T. Riphahn, 2017. "Love your Leave, Don't Leave your Love! Paid Parental Leave and Children's Living Arrangements," CESifo Working Paper Series 6319, CESifo.
    9. Nancy R. Burstein, 2007. "Economic influences on marriage and divorce," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(2), pages 387-429.

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