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

Hilary Williamson Hoynes

Econometrica, 1996, vol. 64, issue 2, 295-332

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.

Date: 1996
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Working Paper: Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation Under AFDC-UP (1993)
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