The intergenerational transmission of welfare receipt: A nonparametric bounds analysis

Using a nonparametric bounding method and data from the Panel Study of Inco me Dynamics, I examine the effect that growing up in a household that recei ves Aid to Families with Dependent Children (AFDC) has on welfare participa tion as a young adult. In light of the ambiguities created by the selection problem, a number of alternative assumptions and estimates are presented. While the data alone cannot be conclusive, the results generally strengthen the evidence that being exposed to AFDC as a child increases both the prob ability and the expected duration of future welfare participation.