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Ethnicity and the Intergenerational Transmission of Welfare Dependency

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  • George J. Borjas
  • Glenn T. Sueyoshi

Abstract

There exist sizeable differences in the incidence and duration of welfare spells across ethnic groups, and these differences tend to persist across generations. Using the National Longitudinal Surveys of Youth, we find that children raised in welfare households are themselves more likely to become welfare recipients for longer durations. We also show that growing up in an ethnic environment characterized by welfare dependency has a significant effect on both the incidence and duration of welfare spells. About 80 percent of the difference in welfare participation rates between two ethnic groups in the parental generation is transmitted to the children.

Suggested Citation

  • George J. Borjas & Glenn T. Sueyoshi, 1997. "Ethnicity and the Intergenerational Transmission of Welfare Dependency," NBER Working Papers 6175, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:6175 Note: LS CH
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    References listed on IDEAS

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    7. Borjas, George J. & Sueyoshi, Glenn T., 1994. "A two-stage estimator for probit models with structural group effects," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 165-182.
    8. Antel, John J, 1992. "The Intergenerational Transfer of Welfare Dependency: Some Statistical Evidence," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 467-473, August.
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    Cited by:

    1. Juan D. Baron & Deborah A. Cobb-Clark & Nisvan Erkal, 2008. "Cultural Transmission of Work-Welfare Attitudes and the Intergenerational Correlation in Welfare Receipt," Department of Economics - Working Papers Series 1059, The University of Melbourne.
    2. Devillanova, Carlo, 2008. "Social networks, information and health care utilization: Evidence from undocumented immigrants in Milan," Journal of Health Economics, Elsevier, vol. 27(2), pages 265-286, March.
    3. Oscar A. Mitnik, 2007. "Intergenerational transmission of welfare dependency: The effects of length of exposure," Working Papers 0715, University of Miami, Department of Economics.
    4. George J. Borjas, 2000. "Immigration and the Food Stamp Program," JCPR Working Papers 121, Northwestern University/University of Chicago Joint Center for Poverty Research.
    5. Giorgio Valente, 2003. "Monetary policy rules and regime shifts," Applied Financial Economics, Taylor & Francis Journals, vol. 13(7), pages 525-535.
    6. Hartley, Robert Paul & Lamarche, Carlos & Ziliak, James P., 2017. "Welfare Reform and the Intergenerational Transmission of Dependence," IZA Discussion Papers 10942, Institute for the Study of Labor (IZA).
    7. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.

    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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