Reportgreen1993

Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation Under AFDC-UP

235 citations0/0 files storedNational Bureau of Economic Research

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Gender, Labor, and Family Dynamics Labor market dynamics and wage inequality Social Policies and Family

Abstract

This paper examines the effect of cash transfers and food stamp benefits on welfare participation and the labor supply of husbands and wives in two-parent families. The estimates are used to determine the magnitude of the work disincentive effects of the Aid to Families with Dependent Children Unemployed Parent (AFDC-UP) program, and to simulate the effects of changes in AFDC-UP benefit and eligibility rules on family labor supply and welfare participation. The results suggest that labor supply and welfare participation among two-parent families are highly responsive to changes in the benefit structure under the AFDC-UP program. Copyright 1996 by The Econometric Society.

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Cited by

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