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Asset Limits in Public Assistance and Savings Behavior Among Low‐Income Families

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  • Leah Hamilton

Abstract

Objectives Low‐income families receiving public benefits in the United States are often subject to asset limits for eligibility, which some argue to be counterproductive to their long‐term economic stability. Previous research suggests that families were more likely to save when asset limits increased after welfare reform in 1996. The current study builds upon this work for the years before and after the Great Recession. Methods This study utilized data from the Panel Study of Income Dynamics. Assets and bank account ownership of low‐income female‐headed households were compared to multiple control groups for the years 2003–2013 using a difference‐in‐difference analytical approach. Results Results suggest that wealth is associated with race and income, but not with asset limit policies. Bank account ownership was similarly unaffected by Temporary Assistance to Needy Families (TANF) policy. Conclusions It is likely that TANF policies are only one of the many barriers to asset accumulation faced by low‐income families, especially in a period of recession.

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  • Leah Hamilton, 2021. "Asset Limits in Public Assistance and Savings Behavior Among Low‐Income Families," Social Science Quarterly, Southwestern Social Science Association, vol. 102(1), pages 454-467, January.
    • Handle: RePEc:bla:socsci:v:102:y:2021:i:1:p:454-467
    DOI: 10.1111/ssqu.12874
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    2. Ling Tian & Haisong Dong, 2022. "Family Life Cycle, Asset Portfolio, and Commercial Health Insurance Demand in China," IJERPH, MDPI, vol. 19(24), pages 1-18, December.

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