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The Effect of Family Size on Incentive Effects of Welfare Transfers in Two-Parent Families

An Evaluation Using Experimental Data

University of Haifa, Israel, and University of Chicago, alewin{at}uchicago.edu

Eric Maurin

École Hautes Études en Sciences Sociales, Paris

Family size is an important determinant of family well-being, and it is a good predictor of poverty. This study examines effects of waiving the 100-hour rule, by family size, and distinguishes between the "work-incentive effects" and the "eligibility effects" of the waiver. The 100-hour rule limits eligibility to aid to two-parent families in which the principal earner is unemployed or underemployed (works fewer than 100 hours per month). The study uses data from the Link-Up randomized experiment, conducted in California’s Central Valley, from 1992 to 1994. The findings show that the eligibility effect of the waiver does not differ by family size, but the work-incentive effect does.

Key Words: welfare • poverty • Aid to Families with Dependent Children (AFDC) • welfare-to-work • work incentives

Evaluation Review, Vol. 29, No. 6, 507-529 (2005)
DOI: 10.1177/0193841X05276444


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