We investigate the extent and implications of cohabitation and marriag
e among U.S. welfare recipients. An analysis of four data sets (the Cu
rrent Population Survey, the National Survey of Families and Household
s, the Panel Study of Income Dynamics, and the National Longitudinal S
urvey of Youth) shows significant numbers of cohabitors among recipien
ts of AFDC. An even more surprising finding is the large number of mar
ried women on welfare. We also report the results of a telephone surve
y of slate AFDC agencies conducted to determine state rules governing
cohabitation and marriage. The survey results indicate that, in a numb
er of respects, AFDC rules encourage cohabitation. Finally, we conduct
an analysis of the impact of AFDC rules on cohabitation, marriage, an
d single motherhood and find weak evidence in support of incentives to
cohabit.