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Entry and Exit Transitions in a Government Transfer Program: The Case of Aid to Families with Dependent Children

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  • Robert M. Hutchens

Abstract

This study analyzes determinants of entry and exit transitions in the Aid to Families with Dependent Children program using data from the Panel Study of Income Dynamics. The principal findings are that state-controlled policy parameters such as the AFDC "guarantee" (the payment received when earnings are zero) and the "entry income limit" (the income level at which families become eligible for AFDC payments) have a significant but asymmetric impact on these transitions. In addition, evidence on the relationship between wages and such transitions tends to support efforts at reducing welfare dependency through programs which raise wages.

Suggested Citation

  • Robert M. Hutchens, 1981. "Entry and Exit Transitions in a Government Transfer Program: The Case of Aid to Families with Dependent Children," Journal of Human Resources, University of Wisconsin Press, vol. 16(2), pages 217-237.
  • Handle: RePEc:uwp:jhriss:v:16:y:1981:i:2:p:217-237
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    Cited by:

    1. Haider, Steven J. & Klerman, Jacob Alex, 2005. "Dynamic properties of the welfare caseload," Labour Economics, Elsevier, vol. 12(5), pages 629-648, October.
    2. Sheena McConnell & Lucia Nixon, "undated". "Reaching the Working Poor and the Poor Elderly: Report on Literature Review and Data Analyses," Mathematica Policy Research Reports b003482dbdec4519b7ebf5d9e, Mathematica Policy Research.
    3. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    4. R. L. Hanson & J. T. Hartman, "undated". "Do welfare magnets attract?," Institute for Research on Poverty Discussion Papers 1028-94, University of Wisconsin Institute for Research on Poverty.
    5. Jeffrey Grogger, 2004. "Welfare transitions in the 1990s: The economy, welfare policy, and the EITC," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 671-695.
    6. Brown, Timothy Tyler, 2009. "Rational praying: The economics of prayer," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 37-44, January.
    7. Ziliak, Stephen T., 1997. "Kicking the Malthusian vice: Lessons from the abolition of "welfare" in the late nineteenth century," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(2), pages 449-468.
    8. R. Plotnick & M. Klawitter & M. Edwards, "undated". "Do Attitudes and Personality Characteristics Affect Socioeconomic Outcomes? The Case of Welfare Use by Young Women," Institute for Research on Poverty Discussion Papers 1161-98, University of Wisconsin Institute for Research on Poverty.

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