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Marriage, Labor Supply and the Dynamics of the Social Safety Net

Hamish Low (), Costas Meghir (), Luigi Pistaferri () and Alessandra Voena

No 24356, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The 1996 US welfare reform introduced limits on years of welfare receipt. We show that this reduced program participation, raised employment for single mothers, and reduced divorce. A limited commitment, lifecycle model of labor supply, marriage and divorce, estimated on pre-reform data, replicates these effects. A large part of the responses occur in anticipation of benefit exhaustion, impacting primarily women with low potential earnings. The reform reduces lifetime utility of women, even allowing for the government savings, but has negligible effects on men. The expectation of marriage attenuates the losses for women and an increased probability of single-motherhood raises them.

JEL-codes: H2 H31 H53 J08 J12 J18 J22 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-ias and nep-ltv
Note: LS PE
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Working Paper: Marriage, Labor Supply and the Dynamics of the Social Safety Net (2018) Downloads
Working Paper: Marriage, Labor Supply and the Dynamics of the Social Safety Net (2018) Downloads
Working Paper: Marriage, Labor Supply and the Dynamics of the Social Safety Net (2018) Downloads
Working Paper: Marriage, labour supply and the dynamics of the social safety net (2018) Downloads
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