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AFDC and the Formation of Subfamilies

  • Robert Hutchens
  • George Jakubson
  • Saul Schwartz
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    This paper analyzes the relationship between AFDC benefits and a single mother's propensity to reside in a subfamily-i.e., within another family rather than in her own independent household. We find that some states pay lower benefits to mothers living in subfamilies. In those states, a single mother may forego a substantial amount of AFDC benefits if she chooses to reside in a subfamily rather than establish her own household. Using data from the 1984 Current Population Survey, we address the question of whether differences in AFDC benefits affect the probability that a mother will reside in a subfamily. We find that the lower benefits paid to subfamilies have discernible but small effects, and that the overall level of AFDC benefits has no effect.

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    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 24 (1989)
    Issue (Month): 4 ()
    Pages: 599-628

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    Handle: RePEc:uwp:jhriss:v:24:y:1989:i:4:p:599-628
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