Measuring the Impact of Family Caps on Childbearing Decisions

Traci Mach

Discussion Papers from University at Albany, SUNY, Department of Economics

Abstract: Since 1992, twenty-two states have enacted family cap provisions into their welfare policies in an attempt to decrease out-of-wedlock childbearing. Using matched data from the March CPS between 1989 and 1998, I construct measures of whether or not a woman is affected and the size of effective penalty. My results suggest that being affected by a family cap has reduced fertility among welfare recipients by 19.5 percent. Results further suggest that the size of the effective penalty is also important; a $50 increase in the effective penalty corresponds to a 23 percent decrease in births among welfare recipients.

JEL-codes: I38 J13 (search for similar items in EconPapers)
Date: 2000
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