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Working Paper

The Impact of AFDC on Birth Decisions and Program Participation

A longitudinal study examining how the level of AFDC benefits and the per-child increment affect births. Although the findings support the "AFDC benefits cause births" hypothesis, the author shows that eliminating the new-birth increment would reduce total program costs by less than 3 percent, since both the per-dollar effect of benefits on births and the per-child increments themselves are small.

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.


Suggested Citation

Powers, Elizabeth. 1994. “The Impact of AFDC on Birth Decisions and Program Participation.” Federal Reserve Bank of Cleveland, Working Paper No. 94-08. https://doi.org/10.26509/frbc-wp-199408