The interaction between single mothers' living arrangements and welfare participation

Abstract

This article examines the interaction between single mothers' living arrangements and their welfare participation, taking into account the endogeneity embedded in the two decisions. Using data from the 1990 Survey of Income and Program Participation, I estimate a two‐stage instrumental variables model and simulate the effects of partial‐ and full‐family benefit reductions on both the distribution of living arrangements and the rate of welfare participation. Tabulations show that 62 percent of single mothers live independently, 16 percent live in the home of their parents, 12 percent cohabit with an unrelated man, and 11 percent share with others. Reductions in combined AFDC and food stamp benefits increase mothers' probability of living with their parents relative to living independently, cohabiting, or sharing with others. Benefit reductions also decrease the probability of welfare receipt. The resulting drop in the participation rate is even more pronounced once the simultaneous effect on the distribution of living arrangements is taken into account. The implication of these findings is that policies aimed at reducing welfare caseloads may have the unanticipated effect of shifting families' living arrangements, potentially confounding the impacts of policy changes in either positive or negative ways. © 2000 by the Association for Public Policy Analysis and Management.

The Economic Resource Receipt of New Mothers

“…The third form of network support is shared housing. Similar to London (2000), shared housing is defined as living with parents, other family members, or nonfamily who are not a spouse or cohabitating partner.…”

Modeling Trajectories in Social Program Outcomes for Performance Accountability

“…The central feature of the intervention was simple yet novel: simultaneous job preparation and placement assistance for both mothers and their partners. The program developers believed, and some recent research affirms (London, 2000), that low-income working mothers would be more likely to achieve a sustainable living for their families, and fewer would be poor, if their partners were also contributing to the support of the family. In addition, the demonstration aimed to develop a number of supportive program services to meet the individual and family needs of the participating couples, including: helping families interact with caseworkers as they transition from receiving public transfer income to earned income; arranging for paternity establishment and child support; assessing needs for child care, transportation, and shared housing.…”

Multigenerational Households and the School Readiness of Children Born to Unmarried Mothers

“…Indeed, previous research indicates that unmarried mothers who coreside are more disadvantaged and have access to few resources. Mothers in multigenerational families (compared with mothers in single-only households) are more commonly young, less educated, poor, and Black or Hispanic rather than non-Hispanic White (Hogan, Hao, & Parish, 1990; London, 2000; Sigle-Rushton & McLanahan, 2002; Tienda & Angel, 1982). Mothers cohabiting at the time of the child’s birth or who marry soon afterward (who often have more resources than unpartnered mothers) are also less likely than single mothers to form a multigenerational household (Sigle-Rushton & McLanahan, 2002).…”