Working Paper: NBER ID: w29754
Authors: Anna Aizer; Hilary W. Hoynes; Adriana Lleras-Muney
Abstract: Economic research on the safety net has evolved significantly over time, moving away from a near exclusive focus on the negative incentive effects of means-tested assistance on employment, earnings, marriage and fertility to include examination of the potential positive benefits of such programs to children. Initially, this research on benefits to children focused on short run impacts, but as we accumulated knowledge about skill production and better data became available, the research evolved further to include important long run economic outcomes such as employment, earnings and mortality. Once the positive long-run benefits to children are considered, many safety net programs are cost-effective. However, the current government practice of limiting the time horizon for cost-benefit calculations of major policy initiatives reduces the influence of the most current economic research on the long run benefits. We conclude with a discussion of why the rate of child poverty in the US is still higher than most OECD countries and how research on children and the safety net can better inform policy-making going forward.
Keywords: No keywords provided
JEL Codes: I3; I32; I38; J12; J13; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| design of social safety net programs (H53) | adult behaviors (C92) |
| targeting low-income families (I38) | disincentives for parents to work (J13) |
| conditional cash transfers (H53) | parents altering employment decisions (J12) |
| safety net programs (I38) | child poverty rates (I32) |
| safety net programs (H53) | long-term benefits for children (J13) |
| safety net programs (I38) | improved health and economic outcomes for children (I15) |