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Drug Use and AFDC Participation: Is There a Connection?

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  • Robert Kaestner

Abstract

Drug use and welfare are two serious social problems that have received widespread public attention. Recently, it has been suggested that illicit drug use is a major cause of welfare, although there is only anecdotal evidence to support such a claim. This paper provides the first systematic analysis of the issue by examining the relationship between illicit drug use and welfare participation among a nationally representative sample of young adults. The results indicate that past year drug use, predominantly marijuana use, is positively related to future welfare participation for both non-black and black women. The magnitude of the drug effect, however, is modest: if drug use among welfare participants was reduced to the levels of non-participants, welfare participation would decline by approximately one percent.

Suggested Citation

  • Robert Kaestner, 1996. "Drug Use and AFDC Participation: Is There a Connection?," NBER Working Papers 5555, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5555
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Robert Kaestner, 1994. "The Effect of Illicit Drug Use on the Labor Supply of Young Adults," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 126-155.
    3. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self‐Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 109-121, July.
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    8. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
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    Cited by:

    1. Hope Corman & Dhaval M. Dave & Dhiman Das & Nancy E. Reichman, 2013. "Effects Of Welfare Reform On Illicit Drug Use Of Adult Women," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 653-674, January.
    2. Robert Kaestner, 1999. "Does Drug Use Cause Poverty?," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research, pages 327-368, National Bureau of Economic Research, Inc.
    3. Beau Kilmer & Rosalie Liccardo Pacula, 2010. "Preventing Drug Use," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 181-220, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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