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Drug Use and AFDC Participation: Is There a Connection?

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Author Info
Robert Kaestner

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Abstract

Drug use and welfare are two serious social problems that have received widespread public attention. Recently, it has been suggested that illicit drug use is a major cause of welfare, although there is only anecdotal evidence to support such a claim. This paper provides the first systematic analysis of the issue by examining the relationship between illicit drug use and welfare participation among a nationally representative sample of young adults. The results indicate that past year drug use, predominantly marijuana use, is positively related to future welfare participation for both non-black and black women. The magnitude of the drug effect, however, is modest: if drug use among welfare participants was reduced to the levels of non-participants, welfare participation would decline by approximately one percent.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5555.

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Date of creation: May 1996
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Handle: RePEc:nbr:nberwo:5555

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self-Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 109-121, 07. [Downloadable!] (restricted)
  4. Charles A. Register & Donald R. Williams, 1992. "Labor market effects of marijuana and cocaine use among young men," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(3), pages 435-451, April.
  5. Kaestner, Robert, 1991. "The Effect of Illicit Drug Use on the Wages of Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 381-412, October. [Downloadable!] (restricted)
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  6. Andrew M. Gill & Robert J. Michaels, 1992. "Does drug use lower wages?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(3), pages 419-434, April.
  7. Robert Kaestner, 1995. "The Effects of Cocaine and Marijuana Use on Marriage and Marital Stability," NBER Working Papers 5038, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Robert Kaestner, 1992. "The Effect of Illicit Drug Use on the Labor Supply of Young Adults," NBER Working Papers 4187, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
  10. Robert Kaestner, 1994. "New estimates of the effect of marijuana and cocaine use on wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(3), pages 454-470, April.
  11. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert Kaestner, 1998. "Does Drug Use Cause Poverty?," NBER Working Papers 6406, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Robert Kaestner, 1999. "Does Drug Use Cause Poverty?," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 327-368 National Bureau of Economic Research, Inc. [Downloadable!]
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