Welfare,child support and family formation

This article provides preliminary tests of the hypothesis that welfare and child support policies designed to accommodate the needs of women (and children) impoverished by fathers who discontinue financial support of children following marital dissolution, have adverse effects on family formation among young unwed parents who were poor even before their children were born. The tests are preliminary because there is too little variation among our policy variables to control for selection. We derive a generalized logit model of the mother' planned and actual family formation outcomes, allowing for her to choose no father involvement, father involvement, co-habitation, and marriage. We estimate this model using baseline data (seven cities) of the Fragile Families and Child Wellbeing Study. The results indicate that more generous welfare benefits and aggressive child support enforcement, increase the odds that disadvantaged unwed mothers' will move from to more stable planned and actual family formation (father involvement, co-habitation, marriage) with the fathers of their children. Besides the effects of these direct policy variables, the fathers employment status, which could also be influenced by policy, also has a large, positive effect on mothers' planned and actual family formation.