The intergenerational effects of welfare transfers among single mothers: Evidence from an Israeli welfare reform

Yannay Shanan

Journal of Public Economics, 2024, vol. 237, issue C

Abstract: This paper examines the intergenerational effects of a welfare reform that increased welfare benefits generosity and eased eligibility requirements for single mothers in Israel. Using large-scale restricted administrative data and a difference-in-differences design, I find that the rise in single mothers’ welfare participation rates following the reform had a significant impact on their children’s long-term economic outcomes. Girls exposed to the reform in childhood were likelier to be on welfare themselves as young adults, while boys experienced a long-lasting increase in labor earnings. The results suggest that generous welfare programs can have beneficial consequences for boys growing up in single-parent households.

Keywords: Intergenerational transmission; Welfare participation; Welfare reform; Single mothers (search for similar items in EconPapers)
JEL-codes: H53 I38 J62 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:237:y:2024:i:c:s0047272724001439

DOI: 10.1016/j.jpubeco.2024.105207

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