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AFDC Benefits and Nonmarital Births to Young Women

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  • Saul D. Hoffman
  • E. Michael Foster

Abstract

Following recent work by Rosenzweig (1999), this paper reexamines the effect of Aid to Families with Dependent Children (AFDC) benefits on nonmarital childbearing through age 22. Unlike most previous work, Rosenzweig finds a statistically significant and quantitatively large positive AFDC effect. Using data from the Panel Study of Income Dynamics, we replicate his analysis and explore the reasons his findings differ from earlier research findings. We are able to reproduce his main finding in a model that includes state and cohort fixed-effects; we find that control for state effects increases the estimated AFDC effect. When we examine fertility separately by age, we find no AFDC effect on teen non-marital births, but a large effect on the behavior of women in their early 20s.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 35 (2000)
Issue (Month): 2 ()
Pages: 376-391

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Handle: RePEc:uwp:jhriss:v:35:y:2000:i:2:p:376-391

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Web page: http://jhr.uwpress.org/

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  1. J. Fitzgerald & P. Gottschalk & R. Moffitt, . "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Institute for Research on Poverty Discussion Papers 1156-98, University of Wisconsin Institute for Research on Poverty.
  2. Lundberg, Shelly & Plotnick, Robert D, 1995. "Adolescent Premarital Childbearing: Do Economic Incentives Matter?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 177-200, April.
  3. Geronimus, Arline T & Korenman, Sanders, 1992. "The Socioeconomic Consequences of Teen Childbearing Reconsidered," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1187-214, November.
  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. Williamson Hoyne, Hilary, 1997. "Does welfare play any role in female headship decisions?," Journal of Public Economics, Elsevier, vol. 65(2), pages 89-117, August.
  6. 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.
  7. Greg Duncan & Saul Hoffman, 1990. "Welfare benefits, economic opportunities, and out-of-wedlock births among black teenage girls," Demography, Springer, vol. 27(4), pages 519-535, November.
  8. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
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