Working Paper: NBER ID: w11612
Authors: Steven J. Haider; Kathleen McGarry
Abstract: Motivated in part by the dramatic changes in the United States economy and public assistance policies, many researchers have examined the changes in the resources of the low-income population over the last two decades, with particular attention paid to income from earnings and public assistance programs. One source of income that has received comparatively little attention is income from private transfers. However, private transfers may be a key source of support for low-income individuals, especially for those who have had little attachment to the labor force or who have experienced reductions in public assistance. In this paper, we provide a conceptual discussion of private transfers drawing on several related literatures and provide new empirical evidence regarding the significance of private of transfers as a source income. We find that private transfers are an important source of income for many less-skilled households, the contribution of private transfers to total income has increased over time, and shared living arrangements are a common mechanism for providing assistance.
Keywords: resource sharing; private transfers; low-income households; economic policy; public assistance
JEL Codes: I3; J0; H0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| private cash transfers from outside the household (F24) | income for recipients (D31) |
| policy changes (J18) | importance of private cash transfers and income from unrelated household members (D19) |
| macroeconomic and demographic changes (J11) | importance of private cash transfers and income from unrelated household members (D19) |
| economic weakness (F52) | reliance on private cash transfers (F35) |
| shared living arrangements (R21) | assistance for low-income individuals (I38) |