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The Intergenerational Transmission of Welfare Receipt: A Nonparametric Bounds Analysis

John V. Pepper
The Review of Economics and Statistics
Vol. 82, No. 3 (Aug., 2000), pp. 472-488
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2646807
Page Count: 17
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The Intergenerational Transmission of Welfare Receipt: A Nonparametric Bounds Analysis
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Abstract

Using a nonparametric bounding method and data from the Panel Study of Income Dynamics, I examine the effect that growing up in a household that receives Aid to Families with Dependent Children (AFDC) has on welfare participation as a young adult. In light of the ambiguities created by the selection problem, a number of alternative assumptions and estimates are presented. While the data alone cannot be conclusive, the results generally strengthen the evidence that being exposed to AFDC as a child increases both the probability and the expected duration of future welfare participation.

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