Since 1992, twenty-two states have enacted family cap provisions into their welfare policies in an attempt to decrease out-of-wedlock childbearing. Using matched data from the March CPS between 1989 and 1998, I construct measures of whether or not a woman is affected and the size of effective penalty. My results suggest that being affected by a family cap has reduced fertility among welfare recipients by 19.5 percent. Results further suggest that the size of the effective penalty is also important; a $50 increase in the effective penalty corresponds to a 23 percent decrease in births among welfare recipients.
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Paper provided by University at Albany, SUNY, Department of Economics in its series Discussion Papers with number
00-04.
Length: Date of creation: 2000 Date of revision: Handle: RePEc:nya:albaec:00-04
Contact details of provider: Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A. Phone: (518) 442-4735 Fax: (518) 442-4736
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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 J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth