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Children and the US Social Safety Net: Balancing Disincentives for Adults and Benefits for Children

Author

Listed:
  • Anna Aizer
  • Hilary W. Hoynes
  • Adriana Lleras-Muney

Abstract

Economic research on the safety net has evolved significantly over time, moving away from a near exclusive focus on the negative incentive effects of means-tested assistance on employment, earnings, marriage and fertility to include examination of the potential positive benefits of such programs to children. Initially, this research on benefits to children focused on short run impacts, but as we accumulated knowledge about skill production and better data became available, the research evolved further to include important long run economic outcomes such as employment, earnings and mortality. Once the positive long-run benefits to children are considered, many safety net programs are cost-effective. However, the current government practice of limiting the time horizon for cost-benefit calculations of major policy initiatives reduces the influence of the most current economic research on the long run benefits. We conclude with a discussion of why the rate of child poverty in the US is still higher than most OECD countries and how research on children and the safety net can better inform policy-making going forward.

Suggested Citation

  • Anna Aizer & Hilary W. Hoynes & Adriana Lleras-Muney, 2022. "Children and the US Social Safety Net: Balancing Disincentives for Adults and Benefits for Children," NBER Working Papers 29754, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29754
    Note: CH LS PE
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    Citations

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    Cited by:

    1. Kaufmann, Katja Maria & Özdemir, Yasemin & Ye, Han, 2022. "Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes," IZA Discussion Papers 15388, Institute of Labor Economics (IZA).
    2. Nicardo S. McInnis & Katherine Michelmore & Natasha Pilkauskas, 2023. "The Intergenerational Transmission of Poverty and Public Assistance: Evidence from the Earned Income Tax Credit," NBER Working Papers 31429, National Bureau of Economic Research, Inc.
    3. Achyuta Adhvaryu & N. Meltem Daysal & Snaebjorn Gunnsteinsson & Teresa Molina & Herdis Steingrimsdottir, 2023. "Child Health, Parental Well-Being, and the Social Safety Net," CEBI working paper series 23-02, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    4. Ray Rees & Thor O. Thoresen & Trine E. Vattø, 2023. "Alternatives to Paying Child Benefit to the Rich: Means‐Testing or Higher Tax?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(3), pages 328-354, September.
    5. Amelia A. Hawkins & Christopher A. Hollrah & Sarah Miller & Laura R. Wherry & Gloria Aldana & Mitchell D. Wong, 2023. "The Long-Term Effects of Income for At-Risk Infants: Evidence from Supplemental Security Income," NBER Working Papers 31746, National Bureau of Economic Research, Inc.
    6. David J. Deming, 2022. "Four Facts about Human Capital," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 75-102, Summer.
    7. Gromadzki, Jan, 2023. "Labor Supply Effects of a Universal Cash Transfer," IZA Discussion Papers 16186, Institute of Labor Economics (IZA).
    8. Auerbach, Alan & Gorodnichenko, Yuriy & Murphy, Daniel, 2022. "Demand Stimulus as Social Policy," IZA Discussion Papers 15568, Institute of Labor Economics (IZA).
    9. Janet C. Gornick & Laurie C. Maldonado & Amanda Sheely, 2022. "Effective Policies for Single-Parent Families and Prospects for Policy Reforms in the United States: Concluding Reflections," The ANNALS of the American Academy of Political and Social Science, , vol. 702(1), pages 236-251, July.
    10. Manasi Deshpande & Rebecca Dizon-Ross, 2023. "The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment," NBER Working Papers 31512, National Bureau of Economic Research, Inc.
    11. Joseph Mullins, 2022. "Designing Cash Transfers in the Presence of Children's Human Capital Formation," Working Papers 2022-019, Human Capital and Economic Opportunity Working Group.
    12. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).
    13. Adriana Lleras‐Muney, 2022. "Education and income gradients in longevity: The role of policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 5-37, February.
    14. Cheng Lin & Adel Daoud & Maria Branden, 2022. "To What Extent Do Disadvantaged Neighborhoods Mediate Social Assistance Dependency? Evidence from Sweden," Papers 2206.04773, arXiv.org, revised Aug 2022.
    15. Sherry Glied, 2022. "Presidential Address: Connecting the Dots: Turning Research Evidence into Evidence for Policymaking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(3), pages 676-682, June.
    16. Louis Kaplow, 2022. "Optimal Income Taxation," NBER Working Papers 30199, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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