WELFARE POLICY AND THE EMPLOYMENT RATE OF AFDC MOTHERS

Irwin Garfinkel · Larry L. Orr

30 citations0/0 files storedNational Tax Journal

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

Abstract

The paper analyzes the effect of economic incentives in the AFDC program on the employment of AFDC mothers. Multiple regression analysis is applied to cross-sectional aggregate state program data for 1967. Our estimates indicate that the level of guarantees, tax rates and set-asides affect AFDC employment rates in the direction predicted by economic theory. Short of a drastic reduction in guarantees, however, manipulation of any of these program parameters is not likely to induce most AFDC mothers to work.

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References

1968Welfare Payments and Work Incentive: Some Determinants of the Rates of General Assistance Payments

Cited by

1987Work, Welfare, and Poverty among Black Female-Headed Families 1991The Work Incentives of AFDC Tax Rates: Reconciling Different Estimates 1999Effects of birth spacing and timing on mothers' labor force participation 1973Variations in Negative Tax Rates in Current Public Assistance Programs: An Example of Administrative Discretion 1986The Policy Context of the Welfare Debate

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