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Research ArticleArticles

Marriage and Economic Incentives

Evidence from a Welfare Experiment

Wei-Yin Hu
Journal of Human Resources, October 2003, XXXVIII (4) 942-963; DOI: https://doi.org/10.3368/jhr.XXXVIII.4.942
Wei-Yin Hu
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Abstract

Can economic incentives be used to affect marriage behavior and slow the growth of single-parent families? This paper provides new evidence on the effects of welfare benefit levels on the marital decisions of poor women. Exogenous variation in welfare benefit incentives arises from a randomized experiment carried out in California that allows me to measure responses beyond simple year-to-year changes in benefit levels. I find that a regime of lower benefits and stronger work incentives encourages married aid recipients to stay married, but has little effect on the probability that single-parent aid recipients marry. The effects on married recipients become larger over time, suggesting that long-run effects may exist.

  • Received January 1999.
  • Accepted June 2002.

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Journal of Human Resources
Vol. XXXVIII, Issue 4
2 Oct 2003
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Marriage and Economic Incentives
Wei-Yin Hu
Journal of Human Resources Oct 2003, XXXVIII (4) 942-963; DOI: 10.3368/jhr.XXXVIII.4.942

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Marriage and Economic Incentives
Wei-Yin Hu
Journal of Human Resources Oct 2003, XXXVIII (4) 942-963; DOI: 10.3368/jhr.XXXVIII.4.942
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