The ''end of welfare as we know it'' in the United Slates was predicat
ed on the belief that the welfare system was responsible for a dramati
c upsurge of single-parent families. This article addresses the issue
historically, examining the potential impact of interstate differences
in Aid to Families with Dependent Children (AFDC) benefit levels on f
amily structure from 1940 to 1990. The author's results reveal that th
e impact of AFDC on family structure was considerably smaller in the p
eriod from 1940 to 1970 than in 1980 or 1990. It is concluded that inc
reasing welfare benefits cannot account for a significant portion of t
he increase in illegitimacy divorce, or separation in the postwar peri
od. Nevertheless, rising benefit levels are significantly associated w
ith changes in the living arrangements of unmarried mothers.