Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation under AFDC-UP
This paper examines the effect of cash transfers and food stamp benefits on welfare participation and the labor supply of husbands and wives in two-parent families. The estimates are used to determine the magnitude of the work disincentive effects of the Aid to Families with Dependent Children Unemployed Parent (AFDC-UP) program, and to simulate the effects of changes in AFDC-UP benefit and eligibility rules on family labor supply and welfare participation. The results suggest that labor supply and welfare participation among two-parent families are highly responsive to changes in the benefit structure under the AFDC-UP program. Copyright 1996 by The Econometric Society.
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Volume (Year): 64 (1996)
Issue (Month): 2 (March)
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