Extent and consequences of welfare dependence among America's children

Abstract

This article examines the extent and consequences for children of life in a family that receives at least part of its income from welfare. We find that occasional receipt is widespread but persistent dependence is not. Dependence appears to have increased between the late 1960s and early 1970s, did not change much between the early 1970s and late 1980s, and may have increased again, for younger black children, in the early 1990s. Welfare dynamics lead only a minority of first-time recipients to be affected by policies that would limit the duration of AFDC receipt to two years. Children whose parents receive welfare appear to complete less schooling, even after adjustment for other differences between recipient and nonrecipient families. Low family income and maternal employment are also found to reduce completed schooling, which complicates welfare-to-work policy choices.