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Titel
Welfare reform and the intergenerational transmission of dependence / Robert Paul Hartley (University of Kentucky), Carlos Lamarche (University of Kentucky and IZA), James P. Ziliak (University of Kentucky) ; IZA Institute of Labor Economics
VerfasserHartley, Robert Paul ; Lamarche, Carlos In der Gemeinsamen Normdatei der DNB nachschlagen ; Ziliak, James Patrick In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2017
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Umfang1 Online-Ressource (76 Seiten) : Diagramme
SerieDiscussion paper ; no. 10942
URNurn:nbn:de:hbz:5:2-137274 Persistent Identifier (URN)
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Welfare reform and the intergenerational transmission of dependence [1 mb]
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Zusammenfassung

We estimate the effect of welfare reform on the intergenerational transmission of welfare participation and related economic outcomes using a long panel of mother-daughter pairs over the survey period 1968-2013 in the Panel Study of Income Dynamics. Because states implemented welfare reform at different times starting in 1992, the cross-state variation over time permits us to quasi-experimentally separate out the effect of mothers' welfare participation during childhood on daughters' economic outcomes in adulthood in the preand post-welfare reform periods. We find that a mother's welfare participation increased her daughter's odds of participation as an adult by roughly 30 percentage points, but that welfare reform attenuated this transmission by at least 50 percent, or at least 30 percent over the baseline odds of participation. While we find comparable-sized transmission patterns in daughters adult use of the broader safety net and other outcomes such as educational attainment and income, there is no diminution of transmission after welfare reform. These results are obtained by addressing nonrandom selection into welfare and are robust to other potential threats to identification from misclassification error, life-cycle age effects, and cross-state mobility.