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Welfare, Intergenerational Cohabitation Penalties, and Single Mothers’ Employment

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  • Jonathan Pingle

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Abstract

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 changed welfare programs by increasing state income maintenance programs’ emphasis on employment. Following reform, several states paid reduced welfare benefits to single mothers who resided in their parents’ homes, compared to those single mothers who lived independently. This paper evaluates whether the benefit reductions lower the probability of intergenerational cohabitation or the employment of single mothers’ recognizing that family support might facilitate single mothers’ labor market attachment. The results suggest that family cohabitation penalties reduce the likelihood single mothers live in their parents’ households and work. Despite several empirical limitations, the results offer evidence that intergenerational living arrangements positively influence employment. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11150-005-0707-z
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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 3 (2005)
Issue (Month): 2 (06)
Pages: 123-144

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Handle: RePEc:kap:reveho:v:3:y:2005:i:2:p:123-144

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: TANF; AFDC; intergenerational living arrangements; employment;

References

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  1. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2002. "The Impact of Welfare Reform on Living Arrangements," NBER Working Papers 8784, National Bureau of Economic Research, Inc.
  2. Amy G. Cox & Anne R. Pebley, 1999. "Grandparent Care and Welfare: Assessing the Impact of Public Policy on Split and Three Generation Families," Working Papers 99-08, RAND Corporation Publications Department.
  3. Schoeni, Robert F, 2002. " Does Unemployment Insurance Displace Familial Assistance?," Public Choice, Springer, vol. 110(1-2), pages 99-119, January.
  4. Cox, A.G. & Pebley, A.R., 1999. "Grandparent Care and Welfare: Assessing the Impact of Public Policy on Split and Three Generation Families," Papers 99-08, RAND - Labor and Population Program.
  5. Schoeni, R-F, 1996. "Does Aid to Families with Dependent Children Displace Familial Assistance?," Papers 96-12, RAND - Labor and Population Program.
  6. H. W. Hoynes, . "Does welfare play any role in female headship decisions?," Institute for Research on Poverty Discussion Papers 1078-95, University of Wisconsin Institute for Research on Poverty.
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