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Do Children from Welfare Families Obtain Less Education?

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  • I. Ku
  • R. D. Plotnick
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    Abstract

    This study estimates the relationship between parental welfare receipt and children’s adulthood educational attainment. Data come from the Panel Study of Income Dynamics. Cross-sectional regression results confirm findings from previous studies that greater parental welfare receipt is significantly associated with children’s poorer educational attainment. Fixed-effect regressions indicate that the relationship between parental welfare receipt and children’s educational outcomes becomes weaker after controlling for unobserved family characteristics, but they do not eliminate the negative relationship. The relationship between parental welfare receipt and children’s educational attainment is not uniform across childhood stages. Additional analyses suggest that parental welfare receipt is not negatively related to educational attainment if combined with at least quarter-time work by the mother.

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    Bibliographic Info

    Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1217-00.

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    Handle: RePEc:wop:wispod:1217-00

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    1. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 300-344.
    2. Scott Boggess, 1998. "Family structure, economic status, and educational attainment," Journal of Population Economics, Springer, vol. 11(2), pages 205-222.
    3. Peter Gottschalk, 1993. "Is The Correlation In Welfare Participation Across Generations Spurious?," Boston College Working Papers in Economics 224, Boston College Department of Economics.
    4. Barbara Wolfe & Robert Haveman & Donna Genther & Chong-Bum An, 1992. "The "Window Problem" in Studies of Children's Attainments: A Methodological Exploration," NBER Technical Working Papers 0125, National Bureau of Economic Research, Inc.
    5. Phillip B. Levine & David J. Zimmerman, 2000. "Children's Welfare Exposure and Subsequent Development," JCPR Working Papers 130, Northwestern University/University of Chicago Joint Center for Poverty Research.
    6. Daniel Aaronson, 1998. "Using Sibling Data to Estimate the Impact of Neighborhoods on Children's Educational Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 915-946.
    7. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
    8. Currie, J. & Cole, N., 1992. "Welfare and Child Health: the Link Between AFDC Participation and Birth Weight," Working papers 92-9, Massachusetts Institute of Technology (MIT), Department of Economics.
    9. Robert Moffitt & Barbara Wolfe, 1990. "The Effect of the Medicaid Program on Welfare Participation and Labor Supply," NBER Working Papers 3286, National Bureau of Economic Research, Inc.
    10. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc.
    11. 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.
    12. M. Anne Hill & June O'Neill, 1994. "Family Endowments and the Achievement of Young Children with Special Reference to the Underclass," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 1064-1100.
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    14. Greg Duncan & Saul Hoffman, 1990. "Welfare benefits, economic opportunities, and out-of-wedlock births among black teenage girls," Demography, Springer, vol. 27(4), pages 519-535, November.
    15. 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.
    16. 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.
    17. R. D. Plotnick & S. D. Hoffman, . "The Effect of Neighborhood Characteristics on Young Adult Outcomes: Alternative Estimates," Institute for Research on Poverty Discussion Papers 1106-96, University of Wisconsin Institute for Research on Poverty.
    18. Sandra K. Danziger & Mary Corcoran & Sheldon Danziger & Colleen M. Heflin & Ariel Kalil & Judith Levine & Daniel Rosen & Kristin S. Seefeldt & Kristine Siefert & Richard M. Tolman, 1999. "Barriers to the Employment of Welfare Recipients," JCPR Working Papers 90, Northwestern University/University of Chicago Joint Center for Poverty Research.
    19. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    20. Rebecca M. Blank, 1989. "The Effect of Medical Need and Medicaid on AFDC Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 54-87.
    21. 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.
    22. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
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    Cited by:
    1. Michael B. Coelli & David A. Green & William P. Warburton, 2004. "Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients," IFS Working Papers W04/14, Institute for Fiscal Studies.

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