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AFDC Payments and Illegitimacy Ratios

A Reappraisal of Endogeneity Using Panel Data

Bibliographic Data

ID2808089
AuthorsSteven B Caudill, Steven Caudill (0000-0003-3388-153X, Auburn University), Franklin G Mixon (0000-0001-9998-7412, University of Southern Mississippi)
Year2000
Volume59
Issue3
Pages451-462
Publication date2000-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Economics and Sociology (JOURNAL)
Journal identifiersISSN: 0002-9246 • E-ISSN: 1536-7150
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1536-7150.00037
OpenAlexW2023046394
LanguageEN
Citations received1

This paper develops a rational choice model of the fertility of single women in the presence of government transfers. Evidence is presented which suggests that real AFDC (Aid to Families with Dependent Children) bene~ts leads to higher rates of illegitimacy. In fact, the unbiased parameter estimate which we present is six times larger than those estimates using OLS (Caudill and Mixon 1993). Also, the point elasticity estimate of real public benefit levels with respect to changes in the illegitimacy rate produced in this study is very robust, approximately +1.4. Our result, which encompasses all fertility of single women in the U.S., is quite encouraging because it falls within an elasticity range of +1.3 to +2.1 produced by a recent study (Clarke and Strauss 1998) for black and white teen fertility (for single women), respectively

Demographic economics · Econometrics · Economics · Endogeneity · Fertility · Labour economics · Panel data · Payment · Percentage point · Population · Sociology · Demography · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Global Health Care Issues

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Unique citing works1
Citations per year0,05
Citation span2006 - 2006 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1

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