Hutchens, Robert M. 1981. "Entry and Exit Transitions in a Government Transfer Program: The Case of Aid to Families with Dependent Children." Journal of Human Resources 16(2):217-237.

This study analyzes determinants of entry and exit transitions in the Aid to Families with Dependent Children program using data from the Panel Study of Income Dynamics. The principal findings are that state-controlled policy parameters such as the AFDC "guarantee" (the payment received when earnings are zero) and the "entry income limit" (the income level at which families become eligible for AFDC payments) have a significant but asymmetric impact on these transitions. In addition, evidence on the relationship between wages and such transitions tends to support efforts at reducing welfare dependency through programs which raise wages.

The author is on the faculty of the New York State School of Industrial and Labor Relations, Cornell University.
* I have greatly benefited from the suggestions of Harold Watts, Glen Cain, Irwin Garfinkel, Robert Lampman, Jon Christianson, Ronald Ehrenberg, Robert Smith, the editor, and an anonymous referee. Financial support was provided by the Institute for Research on Poverty, University of Wisconsin, and the New York State School of Industrial and Labor Relations.

© 2003 by the Board of Regents of the University of Wisconsin System

US ISSN 0022-166X

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