Parental and Public Transfers to Young Women and Their Children

Mark Rosenzweig and Kenneth I Wolpin

American Economic Review, 1994, vol. 84, issue 5, 1195-1212

Abstract: This paper presents estimates of how an increase in welfare benefits for the welfare-eligible affects the provision of parental support in the form of both financial transfers and shared residence based on an overlapping-generations framework incorporating game-theoretic interactions among parents, their adult children, and the government. The empirical results, obtained from two longitudinal data sets, indicate that the parents view a dollar of income earned by their daughters as equivalent to a dollar increase in welfare benefits. However, there exists only a small trade-off between the generosity of government aid and the incidence of parental aid. Copyright 1994 by American Economic Association.

Date: 1994
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