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ERIC Number: ED590215
Record Type: Non-Journal
Publication Date: 2017-May
Pages: 79
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-1936-9379
Welfare Reform and the Intergenerational Transmission of Dependence. Revised. University of Kentucky Center for Poverty Research Discussion Paper Series, DP2016-01
Hartley, Robert Paul; Lamarche, Carlos; Ziliak, James P.
University of Kentucky Center for Poverty Research
We estimate the effect of welfare reform on the intergenerational transmission of welfare participation and related economic outcomes using a long panel of mother-daughter pairs over the survey period 1968-2013 in the Panel Study of Income Dynamics. Because states implemented welfare reform at different times starting in 1992, the cross-state variation over time permits us to quasi-experimentally separate out the effect of mothers' welfare participation during childhood on daughters' economic outcomes in adulthood in the pre- and post-welfare reform periods. We find that a mother's welfare participation increased her daughter's odds of participation as an adult by roughly 30 percentage points, but that welfare reform attenuated this transmission by at least 50 percent, or at least 30 percent over the baseline odds of participation. While we find comparable-sized transmission patterns in daughters' adult use of the broader safety net and other outcomes such as educational attainment and income, there is no diminution of transmission after welfare reform. These results are obtained by addressing nonrandom selection into welfare and are robust to other potential threats to identification from misclassification error, life-cycle age effects, and cross-state mobility. [Originally published in September 2016.]
University of Kentucky Center for Poverty Research. 302D Mathews Building, Lexington, KY 40506. Tel: 859-257-7641; Fax: 859-257-6959; e-mail: ukcpr@uky.edu; Web site: http://www.ukcpr.org
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: University of Kentucky Center for Poverty Research
Identifiers - Laws, Policies, & Programs: Temporary Assistance for Needy Families; Aid to Families with Dependent Children