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Parental and Public Transfers to Young Women and Their Children


  • Rosenzweig, Mark R
  • Wolpin, Kenneth I


This paper presents estimates of how an increase in welfare benefits for the welfare-eligible affects the provision of parental support in the form of both financial transfers and shared residence based on an overlapping-generations framework incorporating game-theoretic interactions among parents, their adult children, and the government. The empirical results, obtained from two longitudinal data sets, indicate that the parents view a dollar of income earned by their daughters as equivalent to a dollar increase in welfare benefits. However, there exists only a small trade-off between the generosity of government aid and the incidence of parental aid. Copyright 1994 by American Economic Association.

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  • Rosenzweig, Mark R & Wolpin, Kenneth I, 1994. "Parental and Public Transfers to Young Women and Their Children," American Economic Review, American Economic Association, vol. 84(5), pages 1195-1212, December.
  • Handle: RePEc:aea:aecrev:v:84:y:1994:i:5:p:1195-1212

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    References listed on IDEAS

    1. Mark Bagnoli & Barton L. Lipman, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 583-601.
    2. Andreoni,J. & Varian,H., 1999. "Pre-play contracting in the prisoners' dilemma," Working papers 18, Wisconsin Madison - Social Systems.
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