The Behavioral Effects of Welfare Time Limits

Time limits are among the most fundamental of recent welfare reforms. Time limits may reduce welfare receipt before recipients reach the limit. If families are forward looking, they may reduce welfare their current welfare use in order to preserve their benefits for the future. The purpose of this p...

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Bibliographic Details
Published in:The American economic review 2002-05, Vol.92 (2), p.385-389
Main Author: Grogger, Jeffrey
Format: Article
Language:English
Subjects:
Age
Behavior
Behavioural sciences
Caseloads
Children
Children & youth
Economic behaviour
Economic conditions
Economic models
Economic theory
Entitlement programs
Estimates
Evaluating Welfare Reform
Families & family life
Financial incentives
FTP
Independent sample
Labor legislation
Public assistance programs
Reflectance
Social security
Studies
U.S.A
Unemployment
Unobservables
Welfare reform
Welfare time limits
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Summary:Time limits are among the most fundamental of recent welfare reforms. Time limits may reduce welfare receipt before recipients reach the limit. If families are forward looking, they may reduce welfare their current welfare use in order to preserve their benefits for the future. The purpose of this paper is to provide evidence of such anticipatory, or behavioral, effects of time limits. Data from the Survey of Income and Program Participation (SIPP) to replicate earlier estimates on the Current Population Survey (CPS). Evidence from the SIPP largely corroborates earlier findings that suggested that time limits have behavioral effects that lead to reductions in welfare recipient even before recipients exhaust their benefits. At the same time, it suggests that time limits may have little effect on most welfare-dependent recipients.
ISSN:0002-8282
1944-7981
DOI:10.1257/000282802320191660