AFDC and the Formation of Subfamilies

Robert Hutchens, George Jakubson and Saul Schwartz

Journal of Human Resources, 1989, vol. 24, issue 4, 599-628

Abstract: This paper analyzes the relationship between AFDC benefits and a single mother's propensity to reside in a subfamily-i.e., within another family rather than in her own independent household. We find that some states pay lower benefits to mothers living in subfamilies. In those states, a single mother may forego a substantial amount of AFDC benefits if she chooses to reside in a subfamily rather than establish her own household. Using data from the 1984 Current Population Survey, we address the question of whether differences in AFDC benefits affect the probability that a mother will reside in a subfamily. We find that the lower benefits paid to subfamilies have discernible but small effects, and that the overall level of AFDC benefits has no effect.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:24:y:1989:i:4:p:599-628

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