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Dynamics of the intergenerational transmission of welfare receipt in the United States

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Abstract

Using data from the Panel Study of Income Dynamics, this article expands upon earlier empirical efforts to understand intergenerational welfare participation in the United States. Empirical studies have suggested that growing up in a household that receives Aid to Families with Dependent Children (AFDC) increases the probability that a child will receive AFDC, although little insight exists on the dynamics of this relationship. In particular, no one has formally examined how the time a daughter spends on AFDC varies from the time her parents receive welfare. By observing the behavior of parents and their daughters for five years, this study examines the length of participation in AFDC across generations. The results imply that growing up in a household that receives AFDC increases the amount of time that a daughter will also receive aid, although the time a daughter receives AFDC is not affected by the length of time parents receive AFDC.

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His research interests include welfare programs, tax policies, local public finance, and econometrics.

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Pepper, J.V. Dynamics of the intergenerational transmission of welfare receipt in the United States. J Fam Econ Iss 16, 265–279 (1995). https://doi.org/10.1007/BF02353711

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