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AFDC and the Formation of Subfamilies

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  • Robert Hutchens
  • George Jakubson
  • Saul Schwartz

Abstract

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.

Suggested Citation

  • Robert Hutchens & George Jakubson & Saul Schwartz, 1989. "AFDC and the Formation of Subfamilies," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 599-628.
    • Handle: RePEc:uwp:jhriss:v:24:y:1989:i:4:p:599-628
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    Cited by:

    1. Edwards, Linda N. & Pasquale, Margaret K., 2003. "Women's higher education in Japan: Family background, economic factors, and the Equal Employment Opportunity Law," Journal of the Japanese and International Economies, Elsevier, vol. 17(1), pages 1-32, March.
    2. Currie, Janet & Gruber, Jonathan, 2001. "Public health insurance and medical treatment: the equalizing impact of the Medicaid expansions," Journal of Public Economics, Elsevier, vol. 82(1), pages 63-89, October.
    3. James P. Ziliak, 2003. "Income Transfers and Assets of the Poor," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 63-76, February.
    4. Francine D. Blau & Lawrence M. Kahn & FJane Waldfogel, 2004. "The Impact of Welfare Benefits on Single Motherhood and Headship of Young Women: Evidence from the Census," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    5. R. A. Moffitt & R. Reville & A. E. Winkler, "undated". "Beyond single mothers: Cohabition, marriage, and the U.S. welfare system," Institute for Research on Poverty Discussion Papers 1068-95, University of Wisconsin Institute for Research on Poverty.
    6. Robert A. Moffitt, 2003. "The Temporary Assistance for Needy Families Program," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 291-364, National Bureau of Economic Research, Inc.
    7. Hope Corman & Robert Kaestner, 1991. "The Effects of Child Health on Marital Status," NBER Working Papers 3850, National Bureau of Economic Research, Inc.
    8. Williamson Hoyne, Hilary, 1997. "Does welfare play any role in female headship decisions?," Journal of Public Economics, Elsevier, vol. 65(2), pages 89-117, August.
    9. Yana Kucheva, 2018. "Subsidized Housing and the Transition to Adulthood," Demography, Springer;Population Association of America (PAA), vol. 55(2), pages 617-642, April.
    10. Smith, Mark W., 1999. "The impact of state welfare policies on women's cohabitation," MPRA Paper 19288, University Library of Munich, Germany.
    11. R. A. Moffitt, "undated". "The Effect of Welfare on Marriage and Fertility: What Do We Know and What Do We Need to Know?," Institute for Research on Poverty Discussion Papers 1153-97, University of Wisconsin Institute for Research on Poverty.
    12. Aaron S. Yelowitz, 1998. "Will Extending Medicaid to Two-Parent Families Encourage Marriage?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 833-865.
    13. Sandra L. Hofferth & Duncan D. Chaplin & Douglas A. Wissoker & Philip K. Robins, 1996. "Choice Characteristics And Parents' Child-Care Decisions," Rationality and Society, , vol. 8(4), pages 453-495, November.
    14. Janet Currie & Jonathan Gruber, 1997. "The Technology of Birth: Health Insurance, Medical Interventions, and Infant Health," NBER Working Papers 5985, National Bureau of Economic Research, Inc.
    15. Rebecca A London, 2000. "The interaction between single mothers' living arrangements and welfare participation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(1), pages 93-117.
    16. Kathleen McGarry & Robert F. Schoeni, 1998. "Social Security, Economic Growth, and the Rise in Independence of Elderly Widows in the 20th Century," NBER Working Papers 6511, National Bureau of Economic Research, Inc.
    17. Audrey Light & Manuelita Ureta, 2003. "Living Arrangements, Employment Status, and the Economic Well-Being of Mothers: Evidence from Brazil, Chile and the United States," Working Papers 03-06, Ohio State University, Department of Economics.
    18. H. W. Hoynes, "undated". "Does welfare play any role in female headship decisions?," Institute for Research on Poverty Discussion Papers 1078-95, University of Wisconsin Institute for Research on Poverty.
    19. Linda N. Edwards & Elizabeth Field-Hendrey, 2002. "Home-Based Work and Women's Labor Force Decisions," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 170-200, January.

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