Do welfare asset limits affect household saving? Evidence from welfare reform

Erik Hurst, James P. Ziliak

Research output: Contribution to journalArticlepeer-review

76 Scopus citations

Abstract

We use data from the Panel Study of Income Dynamics to estimate the effect of new saving incentives implemented as part of the 1996 welfare reform on household saving. Economic theory predicts that loosening asset limits will increase total savings for households with a large ex-ante probability of welfare receipt such as female-headed households with children. We follow a sample of female heads with children and find that in both absolute terms, and relative to comparison groups of male heads and female heads without children, there has been no effect of welfare policy changes on the savings of at-risk households.

Original languageEnglish
Pages (from-to)46-71
Number of pages26
JournalJournal of Human Resources
Volume41
Issue number1
DOIs
StatePublished - 2006

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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