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Journal of Political Economy Vol. 130 No. 3 2022

Welfare Reform and the Intergenerational Transmission of Dependence

Robert Paul Hartley1; Carlos Lamarche2; James P. Ziliak2

1 Columbia University · 2 University of Kentucky

Abstract

We investigate the effect of welfare reform on intergenerational welfare participation, using mother-daughter pairs in the Panel Study of Income Dynamics. We find that a mother’s Aid to Families with Dependent Children/Temporary Assistance for Needy Families (AFDC/TANF) participation increased her daughter’s odds of adult participation in that program by roughly 25 percentage points or more, but that welfare reform attenuated this transmission by at least 50%. However, there is no diminution of transmission after welfare reform when we consider the wider safety net or other outcomes. Daughters who grew up with mothers on AFDC/TANF were no better off after reform, with substitution toward other welfare programs over generations.

DOI
10.1086/717893
Volume
130
Issue
3
Pages
523-565
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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