The Difference Between Divorced and Never-Married Mothers' Participation in the Aid to Families With Dependent Children Program

Abstract

In this study, I examine the way in which divorced and never-married single mothers differ in their decisions to participate in Aid to Families With Dependent Children (AFDC). Using data from the Survey of Income and Program Participation (SIPP), I find that divorced mothers are twice as likely to receive AFDC benefits than never-married mothers. When the gap between the participation rates is decomposed, I find that at most 25% is due to differences in the distribution of measured characteristics. The remaining portion is due to differences in the AFDC decision-making process. Hence, in attempting to move disadvantaged single mothers off welfare, policies need to address issues broader than modifying individual behavior. The decision-making process potentially encompasses influences from family and the community. Without addressing these forces, many single mothers will prefer to remain AFDC participants given their set of available options.