Single
Mothers' Living Arrangements:
The Effect of Household Composition on AFDC Participation
Rebecca
A. London
Abstract
This paper examines the determinants of single mothers' living
arrangements and their effect on mothers' AFDC participation. Using
data from the 1990 Survey of Income and Program Participation, I
estimate a two-stage instrumental variables model to account for
the simultaneity of the living arrangement and AFDC participation
decisions. 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. High AFDC plus Food Stamp benefits increase the propensity
of mothers to cohabit, and decrease their probability of living
with parents or sharing with others, relative to living independently.
Higher benefits also increase the probability of AFDC receipt. However,
the resulting rise in the AFDC participation rate is not as pronounced
once the policy's simultaneous effect on the distribution of living
arrangements is taken into account. In addition, increasing the
restrictiveness of state policies regarding co-residents' contributions
to shelter and household expenses has effects on both the distribution
of living arrangements and the AFDC participation rate. Again, simulations
show that the effects on AFDC participation are mediated by the
shift in the distribution of living arrangements.
Rebecca A. London,
Currently, Berkeley Associates, Berkeley, CA
To Order:
Hard copies of IPR working papers cost $5.00 each (international orders are $10 each). We only accept checks drawn on U.S. bank and payable in U.S. funds. Checks or
money orders should be made payable to Northwestern University and sent to
the following address:
Publications Department - WP Orders
Institute for Policy Research
2040 Sheridan Rd., Evanston, IL 60208-4100.
For information, call 847-491-8712 or email ipr@northwestern.edu.
Please note that we do not accept credit cards.
