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Temporary Assistance For Needy Families, James P. Ziliak
Temporary Assistance For Needy Families, James P. Ziliak
University of Kentucky Center for Poverty Research Discussion Paper Series
The provision of public assistance to families with children in America faced a watershed moment with the passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). PRWORA replaced the Aid to Families with Dependent Children (AFDC) program, which was an entitlement funded via a federal-state matching grant, with Temporary Assistance for Needy Families (TANF), which is no longer an entitlement and is financed with a fixed federal block-grant to the states. The impetus for reform had been building for at least the two decades prior to passage, but took on greater currency with the dramatic growth …
Relative Prices And Substitution Across Wage, Welfare, And Disability Income, James P. Ziliak
Relative Prices And Substitution Across Wage, Welfare, And Disability Income, James P. Ziliak
University of Kentucky Center for Poverty Research Discussion Paper Series
In this paper I exploit the fact that the social and economic reforms over the past two decades differentially affected the opportunity costs of non-participation in work, welfare, and disability programs for single mothers across different birth-year and education cohorts. This cohort variation in after-tax wages and transfer benefits is used to identify own- and cross-price elasticities of demand for and substitution across wage, welfare, and disability income over 1979 to 2001 in the Current Population Survey. To estimate these key parameters I model household preferences with a conditional Almost Ideal Demand System that admits corner solutions, nonseparability, endogenous wages …