The effects of family caps on the subsequent fertility decisions of never-married mothers |
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Authors: | Geoffrey L Wallace |
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Institution: | (1) La Follette School of Public Affairs, University of Wisconsin, 1225 Observatory Drive, Madison, WI 53706, USA |
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Abstract: | Family caps seek to reduce fertility among welfare recipients by denying additional cash assistance to recipients who have
children while on welfare. A necessary condition for family caps to be an effective policy tool is that welfare recipients
respond to financial incentives in making decisions that affect subsequent fertility outcomes. This paper uses data from the
2001 and 2004 panels of the Survey of Income and Program Participation (SIPP) to examine whether welfare mothers respond to
the incentive provided by the Aid to Families with Dependent Children/Temporary Assistance to Needy Families (AFDC/TANF) system
in determining whether or not to have a second child. The results show no evidence that family caps have an effect on the
subsequent childbearing of never married women.
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Keywords: | Family caps Fertility Welfare reform |
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