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The intergenerational transmission of welfare participation: Facts and possible causes

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  • Peter Gottschalk

Abstract

This article explores two methodological issues in measuring intergenerational correlations in welfare participation. First, a method is proposed that controls for differences in eligibility as well as participation. Second, the use of event history analysis allows all available information on mothers' and daughters' welfare histories to be used. The National Longitudinal Survey of Youth is used to measure the intergenerational correlation among whites, blacks, and Hispanics. Three broad conclusions emerge. First, parental participation in Aid to Families with Dependent Children (AFDC) is correlated with daughters' AFDC participation for whites and Hispanics-daughters living in households that received assistance have higher probabilities of having a child and receiving assistance in the year of first birth than similar daughters whose parents didn't participate (or participated for shorter periods). Second, parents' participation does not seem to be capturing solely the effects of low income which leads to a correlation in mothers' and daughters' eligibility. Finally, the loss of income if the parent does not participate raises the probability that the daughter will receive assistance. The effect of this income loss offsets nearly half of the participation effect for whites.

Suggested Citation

  • Peter Gottschalk, 1992. "The intergenerational transmission of welfare participation: Facts and possible causes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(2), pages 254-272.
    • Handle: RePEc:wly:jpamgt:v:11:y:1992:i:2:p:254-272
    DOI: 10.2307/3325367
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    1. Sara McLanahan, 1988. "Family structure and dependency: Early transitions to female household headship," Demography, Springer;Population Association of America (PAA), vol. 25(1), pages 1-16, February.
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    1. Robert Tanton & Honge Gong & Ann Harding, 2011. "Multiple Generation Disadvantage: How Communities Affect the Outcomes of Different Generations," NATSEM Working Paper Series 11/05, University of Canberra, National Centre for Social and Economic Modelling.
    2. Prem J. Thapa, 2004. "On the risk of unemployment: a comparative assessment of the labour market success of migrants in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 199-229, June.
    3. Beaulieu, Nicolas & Duclos, Jean-Yves & Fortin, Bernard & Rouleau, Manon, 2001. "An Econometric Analysis of Intergenerational Reliance on Social Assistance," Cahiers de recherche 0116, Université Laval - Département d'économique.
    4. Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, vol. 14(1), pages 231-249, March.
    5. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Salamanca, Nicolás & Zhu, Anna, 2022. "Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt," Labour Economics, Elsevier, vol. 79(C).
    6. Rebecca M. Blank, 2005. "Poverty, Policy, and Place: How Poverty and Policies to Alleviate Poverty Are Shaped by Local Characteristics," International Regional Science Review, , vol. 28(4), pages 441-464, October.
    7. Lingxin Hao & Nan Astone & Andrew Cherlin, 2007. "Effects of child support and welfare policies on nonmarital teenage childbearing and motherhood," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 26(3), pages 235-257, June.
    8. Barón, Juan D. & Cobb-Clark, Deborah A. & Erkal, Nisvan, 2008. "Cultural Transmission of Work-Welfare Attitudes and the Intergenerational Correlation in Welfare Receipt," IZA Discussion Papers 3904, Institute of Labor Economics (IZA).
    9. Gabriella Berloffa & Eleonora Matteazzi & Paola Villa, 2016. "Family background and youth labour market outcomes across Europe," Working Papers 393, ECINEQ, Society for the Study of Economic Inequality.
    10. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, vol. 63(1), pages 1-25, December.
    11. Gail Pacheco & Tim Maloney, 2003. "Are the Determinants of Intergenerational Welfare Dependency Gender-specific?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 371-382, September.
    12. Duncan, Greg J. & Yeung, Wei-Jun J., 1995. "Extent and consequences of welfare dependence among America's children," Children and Youth Services Review, Elsevier, vol. 17(1-2), pages 157-182.
    13. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    14. Rebecca Blank, 2003. "Selecting Among Anti-Poverty Policies: Can an Economist be Both Critical and Caring?," Review of Social Economy, Taylor & Francis Journals, vol. 61(4), pages 447-469.
    15. I. Ku & R. D. Plotnick, "undated". "Do Children from Welfare Families Obtain Less Education?," Institute for Research on Poverty Discussion Papers 1217-00, University of Wisconsin Institute for Research on Poverty.
    16. Juan D. Barón & Deborah A. Cobb‐Clark & Nisvan Erkal, 2015. "Welfare receipt and the intergenerational transmission of work‐welfare norms," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 208-234, July.
    17. Susan E Mayer, 2000. "Why Welfare Caseloads Fluctuate: A Review of Research on AFDC, SSI, and the Food Stamps Program," Treasury Working Paper Series 00/07, New Zealand Treasury.
    18. Caroline E. Ratcliffe, 2002. "Premarital Childbearing and Welfare Receipt: The Role of Mothers' Receipt," ILR Review, Cornell University, ILR School, vol. 56(1), pages 160-178, October.
    19. Juan M. Villa & Miguel Niño-Zarazúa, 2019. "Poverty dynamics and graduation from conditional cash transfers: a transition model for Mexico’s Progresa-Oportunidades-Prospera program," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 219-251, June.
    20. Yana Kucheva, 2014. "The Receipt of Subsidized Housing across Generations," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 33(6), pages 841-871, December.
    21. Seninger, Stephen F., 1998. "Evaluating participation and employment outcomes in a welfare-to-work program," Evaluation and Program Planning, Elsevier, vol. 21(1), pages 73-79, February.
    22. Greg Duncan & Rachel Dunifon & Morgan Ward Doran & W. Jean Yeung, 1998. "How Different ARE Welfare and Working Families? And Do Those Differences Matter for Children's Achievement?," JCPR Working Papers 38, Northwestern University/University of Chicago Joint Center for Poverty Research.

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