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12:30 - 13:45 20 April 2016

Welfare Reform and the Intergenerational Transmission of Dependence


IFS Basement | Institute for Fiscal Studies (link Map)
7 Ridgmount Street | London | WC1E 7AE | United Kingdom

Open to: Academic | Student
Ticketing: Open

Speaker information

Jim Ziliak, University of Kentucky

We estimate the effect of welfare reform on the intergenerational transmission of AFDC/TANF participation 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 over time variation permits us to quasi-experimentally separate out the effect of mothers’ participation on daughters’ welfare choice in the pre- and post-welfare reform periods. In addition, our empirical framework addresses potential biases in estimating a causal pathway from parent to child from endogenous selection into welfare, life-cycle factors, and misclassification error. Our estimates show that there is a causal transmission of AFDC/TANF participation from mother to daughter, but that welfare reform significantly attenuated this transmission by at least 50 percent.


Institute for Fiscal Studies
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