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Welfare Rules, Incentives, and Family Structure

Author

Listed:
  • Robert A. Moffitt
  • Brian J. Phelan
  • Anne E. Winkler

Abstract

We provide a new examination of the incentive effects of welfare rules on family structure among low-income women by emphasizing that the eligibility and benefit rules in the AFDC and TANF programs are based more on the biological relationship between the children and any male in the household than on marriage or cohabitation per se. Using data from 1996 through 2008, we analyze the effects of 1990s welfare reforms on family structure categories that incorporate the biological status of the male. Like past work, we find that most policies did not affect family structure. However, we do find that several work-related reforms increased single parenthood and decreased marriage to biological fathers. These results are especially evident when multiple work-related policies were implemented together and when we examine the longer term impacts of the policies. We posit that these effects of work-related welfare policies on family structure stem from their effects on increased labor force participation and earnings of single mothers combined with factors special to biological fathers, including a decline in their employment and wages.

Suggested Citation

  • Robert A. Moffitt & Brian J. Phelan & Anne E. Winkler, 2015. "Welfare Rules, Incentives, and Family Structure," NBER Working Papers 21257, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21257
    Note: LS PE
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    References listed on IDEAS

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    Cited by:

    1. Robert Moffitt, 2015. "The Deserving Poor, the Family, and the U.S. Welfare System," Demography, Springer;Population Association of America (PAA), vol. 52(3), pages 729-749, June.
    2. Nezih Guner & Remzi Kaygusuz & Gustavo Ventura, 2023. "Rethinking the Welfare State," Econometrica, Econometric Society, vol. 91(6), pages 2261-2294, November.
    3. Korenman, Sanders & Hyson, Rosemary T., 2023. "Health insurance, labor market shocks, and mental health during the first year of the COVID-19 crisis," Economics & Human Biology, Elsevier, vol. 51(C).
    4. Salvador Ortigueira & Nawid Siassi, 2022. "The U.S. Tax-Transfer System and Low-Income Households: Savings, Labor Supply, and Household Formation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 184-210, April.
    5. Raute, Anna & Weber, Andrea & Zudenkova, Galina, 2022. "Can public policy increase paternity acknowledgement? Evidence from earnings-related parental leave," CEPR Discussion Papers 17073, C.E.P.R. Discussion Papers.
    6. Hayley Fisher & Anna Zhu, 2019. "The Effect of Changing Financial Incentives on Repartnering," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2833-2866.
    7. Ortigueira, Salvador & Siassi, Nawid, 2022. "Income assistance, marriage, and child poverty: An assessment of the Family Security Act," Economic Modelling, Elsevier, vol. 111(C).
    8. Barbara Broadway & Tessa LoRiggio & Chris Ryan & Anna Zhu, 2022. "Literature review on the impact of welfare policy design on children and youth," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 809-840, September.
    9. Gordon Dahl & Katrine Loken, 2024. "Families, Public Policies, and the Labor Market," RF Berlin - CReAM Discussion Paper Series 2423, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    10. Oyenubi, Adeola & Kollamparambil, Umakrishnan, 2022. "Does the child support grant incentivise childbirth in South Africa?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 812-825.
    11. Spencer, Melissa K., 2024. "Safer sex? The effect of AIDS risk on birth rates," Journal of Health Economics, Elsevier, vol. 95(C).

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J1 - Labor and Demographic Economics - - Demographic Economics

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