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Childhood Welfare Exposure and Economic Outcomes for Adult Daughters and Sons

Author

Listed:
  • Hartley, Robert Paul

    (Columbia University)

  • Lamarche, Carlos

    (University of Kentucky)

  • Ziliak, James P.

    (University of Kentucky)

Abstract

We investigate how length of time on welfare during childhood affects economic outcomes in early adulthood. Using intergenerationally linked mother-child pairs from the Panel Study of Income Dynamics, we adopt a nonlinear difference-in-differences framework using the 1990s welfare reform to estimate average and quantile treatment effects on intensity of welfare use and earnings in adulthood. The causal estimates indicate that additional childhood welfare exposure leads to more adulthood years on the broader safety net for both daughters and sons, yet this positive relationship only applies below moderate levels of adult welfare participation and reverses at greater levels of dependence. Increasing childhood welfare exposure implies lower earnings in adulthood for daughters, however we find no evidence that it depresses adult sons’ earnings. Both daughters and sons exhibit some wage penalty from childhood welfare exposure, yet only daughters are penalized through hours worked in the labor market.

Suggested Citation

  • Hartley, Robert Paul & Lamarche, Carlos & Ziliak, James P., 2025. "Childhood Welfare Exposure and Economic Outcomes for Adult Daughters and Sons," IZA Discussion Papers 17650, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17650
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    More about this item

    Keywords

    intergenerational welfare; nonlinear difference-in-differences; quantile correlations; quantile treatment effects;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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