The determinants of a mother's choice of family structure

This study attempts to clarify the effect of welfare generosity on family structure while controlling for community mores, local labor market conditions, and other sociodemographic characteristics. In the existing AFDC (Aid to Families with Dependent Children) literature, these latter factors have been largely ignored. The empirical analysis is conducted by linking individual-level data from the 1987 National Survey of Families and Households (NSFH) with information on county-level unemployment rates, state AFDC benefits, and proxies of community mores. In particular, the detailed nature of the NSFH data set provides a unique opportunity to investigate the social and economic determinants of cohabitation, among other family structures. Local labor market conditions are found to significantly affect marriage and single-motherhood, while community conservatism is found to discourage the least conventional family structure — cohabitation. Finally, this study raises some question about the effect of AFDC policy on marriage and related events. Specifically, AFDC's statistical impact is found to be sensitive to the inclusion of an explicit measure of community conservatism in the empirical model specification.