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Duration of Public Assistance Receipt: Is Welfare a Trap?

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  • G. Sandefur
  • S. Cook

Abstract

This paper uses data from the National Longitudinal Survey of Youth to answer two questions about the effects of the Aid to Families with Dependent Children (AFDC) program: (1) Does the length of time that one receives AFDC affect the likelihood of permanently leaving AFDC? (2) What personal and family characteristics are associated with the long-term receipt of AFDC? The answer to the first question is that the likelihood of permanently leaving AFDC decreases with the length of time that individuals receive benefits, after adjustments for other measured and unmeasured attributes of individuals and their families. The answer to the second question is that not having a high school diploma, never having married, having more than two children, and having little work experience are associated with long-term receipt. Many of the recipients who will reach the five-year limit imposed by the new federal legislation are in situations that make it difficult for them to support themselves and their families without public assistance.

Suggested Citation

  • G. Sandefur & S. Cook, "undated". "Duration of Public Assistance Receipt: Is Welfare a Trap?," Institute for Research on Poverty Discussion Papers 1129-97, University of Wisconsin Institute for Research on Poverty.
    • Handle: RePEc:wop:wispod:1129-97
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    File URL: http://www.irp.wisc.edu/publications/dps/pdfs/dp112997.pdf
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    References listed on IDEAS

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    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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    3. G. Sandefur & T. Wells, "undated". "Trends in AFDC Participation Rates: The Implications for Welfare Reform," Institute for Research on Poverty Discussion Papers 1116-96, University of Wisconsin Institute for Research on Poverty.
    4. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August.
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    Cited by:

    1. Luis Ayala & Mariya Melnychuk, 2024. "Differential Effects of Expansions and Recessions on Social Assistance Duration: The Case of Regional Minimum Income Programmes in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 248(1), pages 115-141, March.
    2. Helen H. Jensen & Shao-Hsun Keng & Steven B. Garasky, 2000. "Location and the Low Income Experience: Analyses of Program Dynamics in the Iowa Family Investment Program," Center for Agricultural and Rural Development (CARD) Publications 00-wp244, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Shao-Hsun Keng & Steven Garasky & Helen Jensen, 2002. "Welfare dependence and recidivism in an era of welfare reform," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2311-2323.
    4. Mairead Reidy & Lucy Mackey-Bilaver & Robert M. Goerge & Yizu Yeh & Bong Joo Lee, 1998. "The Dynamics of AFDC, Medicaid, and Food Stamps: A Preliminary Report," JCPR Working Papers 48, Northwestern University/University of Chicago Joint Center for Poverty Research.
    5. Ayala, Luis & Rodriguez, Magdalena, 2007. "Barriers to employment and welfare dynamics: Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 237-257.
    6. Hilary W. Hoynes & Kenneth Y. Chay & Dean Hyslop, 2004. "True State Dependence In Monthly Welfare Participation:A Nonexperimental Analysis," Working Papers 533, University of California, Davis, Department of Economics.
    7. Ayala, Luis & Rodriguez, Magdalena, 2006. "The latin model of welfare: Do `insertion contracts' reduce long-term dependence?," Labour Economics, Elsevier, vol. 13(6), pages 799-822, December.
    8. Hilary W. Hoynes & Kenneth Y. Chay & Dean Hyslop, 2004. "True State Dependence In Monthly Welfare Participation:A Nonexperimental Analysis," Working Papers 2, University of California, Davis, Department of Economics.
    9. Luis Ayala & Magdalena Rodríguez, 2010. "Explaining welfare recidivism: what role do unemployment and initial spells have?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 373-392, January.

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