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AFDC Benefits and Nonmarital Births to Young Women

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Author Info
Saul D. Hoffman
E. Michael Foster

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Abstract

Building on recent work by Rosenzweig (1999), this paper re-examines the effect of AFDC benefits on early nonmarital childbearing. Unlike most previous work in this area, Rosenzweig finds a statistically significant and quantitatively large positive effect of AFDC benefits. Using data from the Panel Study of Income Dynamics, we replicate Rosenzweig=s analysis and explore the reasons his findings differ from earlier research findings. We are able to reproduce his main finding that AFDC generosity influences non-marital childbearing when state and cohort fixed-effects are included. However, we find that model specification matters a great deal. An alternative specification of state fixed-effects yields no evidence of an AFDC effect, and when we focus on fertility only through age 19 (as in prior work), we also find no AFDC effect. This latter finding implies that the behavior of women in their early 20s may be far more sensitive to welfare generosity than is that of teenagers.

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Publisher Info
Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 3.

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Date of creation: 01 May 1997
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Handle: RePEc:wop:jopovw:3

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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. 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. [Downloadable!] (restricted)
  2. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Blackwell Publishing, vol. 47(1), pages 225-38, January. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
    Other versions:
  4. 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. [Downloadable!] (restricted)
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  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
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(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 Moffitt, 2002. "The Temporary Assistance for Needy Families Program," NBER Working Papers 8749, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Arnstein Aassve, 2000. "Economic resources and single motherhood: incidence and resolution of premarital childbearing among young American women," MPIDR Working Papers WP-2000-015, Max Planck Institute for Demographic Research, Rostock, Germany. [Downloadable!]
  3. 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. [Downloadable!]
  4. Kathryn Edin, 1999. "What Do Low-Income Single Mothers Say About Marriage?," JCPR Working Papers 100, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. Joseph Sabia, 2008. "Blacks and the family cap: pregnancy, abortion, and spillovers," Journal of Population Economics, Springer, vol. 21(1), pages 111-134, January. [Downloadable!] (restricted)
  6. Chien-Chung Huang, 2001. "The Impact of Child Support Enforcement on Nonmarital and Marital Births: Does It Differ by Racial and Age Groups?," JCPR Working Papers 246, Northwestern University/University of Chicago Joint Center for Poverty Research.
  7. Oscar A. Mitnik, . "Intergenerational transmission of welfare dependency: The effects of length of exposure," Working Papers 0715, University of Miami, Department of Economics. [Downloadable!]
  8. R. Haveman & B. Wolfe & K. Wilson & E. Peterson, . "Do Teens Make Rational Choices? The Case of Teen Nonmarital Childbearing," Institute for Research on Poverty Discussion Papers 1137-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  9. John M. Fitzgerald & David Ribar, 2001. "The Impact of Welfare Waivers on Female Headship Decisions," JCPR Working Papers 247, Northwestern University/University of Chicago Joint Center for Poverty Research.
    Other versions:
  10. Martin D. Dooley, . "The Evolution of Welfare Participation Among Canadian Lone Mothers From 1973 ­ 1991," Canadian International Labour Network Working Papers 17, McMaster University. [Downloadable!]
    Other versions:
  11. Derek Neal, 2001. "The Economics of Family Structure," NBER Working Papers 8519, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Melissa Schettini Kearney, 2002. "Is There an Effect of Incremental Welfare Benefits on Fertility Behavior? A Look at the Family Cap," NBER Working Papers 9093, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Thomas DeLeire & Leonard M. Lopoo & Kosali I. Simon, 2007. "Medicaid Expansions and Fertility in the United States," NBER Working Papers 12907, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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