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The impact of AFDC on birth decisions and program participation

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  • Elizabeth T. Powers

Abstract

A longitudinal study examining how the level of AFDC benefits and the per-child increment affect births. Although the findings support the \"AFDC benefits cause births\" hypothesis, the author shows that eliminating the new-birth increment would reduce total program costs by less than 3 percent, since both the per-dollar effect of benefits on births and the per-child increments themselves are small.

Suggested Citation

  • Elizabeth T. Powers, 1994. "The impact of AFDC on birth decisions and program participation," Working Papers (Old Series) 9408, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9408
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    References listed on IDEAS

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    1. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-1035, December.
    2. Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-469, June.
    3. G. Acs, "undated". "The impact of AFDC on young women's childbearing decisions," Institute for Research on Poverty Discussion Papers 1011-93, University of Wisconsin Institute for Research on Poverty.
    4. 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.
    5. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
    6. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    7. Wilbert van der Klaauw, 1996. "Female Labour Supply and Marital Status Decisions: A Life-Cycle Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 199-235.
    8. Blank, Rebecca M., 1985. "The impact of state economic differentials on household welfare and labor force behavior," Journal of Public Economics, Elsevier, vol. 28(1), pages 25-58, October.
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    Cited by:

    1. Carlstrom, Charles T & Fuerst, Timothy S, 1997. "Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis," American Economic Review, American Economic Association, vol. 87(5), pages 893-910, December.
    2. Wendy Tanisha Dyer & Robert W. Fairlie, 2003. "Do Family Caps Reduce Out-of-Wedlock Births? Evidence from Arkansas, Georgia, Indiana, New Jersey and Virginia," Working Papers 877, Economic Growth Center, Yale University.
    3. Elizabeth T. Powers, 1995. "Fertility and welfare participation," Working Papers (Old Series) 9516, Federal Reserve Bank of Cleveland.

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    Keywords

    Demography; Welfare;

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