Welfare Reform and the Intergenerational Transmission of Dependence

Robert Paul Hartley, Carlos Lamarche and James Ziliak

Journal of Political Economy, 2022, vol. 130, issue 3, 523 - 565

Abstract: We investigate the effect of welfare reform on intergenerational welfare participation, using mother-daughter pairs in the Panel Study of Income Dynamics. We find that a mother’s Aid to Families with Dependent Children/Temporary Assistance for Needy Families (AFDC/TANF) participation increased her daughter’s odds of adult participation in that program by roughly 25 percentage points or more, but that welfare reform attenuated this transmission by at least 50%. However, there is no diminution of transmission after welfare reform when we consider the wider safety net or other outcomes. Daughters who grew up with mothers on AFDC/TANF were no better off after reform, with substitution toward other welfare programs over generations.

Date: 2022
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Working Paper: Welfare Reform and the Intergenerational Transmission of Dependence (2017)
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