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Labor Economics: Marriage, Labor Supply and the Dynamics of the Social Safety Net

Alessandra Voena, Stanford University
Wednesday, April 21, 2021
2:30-3:50 PM
The 1996 US welfare reform introduced limits on years of welfare receipt. We show that this reduced program participation, raised employment for single mothers, and reduced divorce. A limited commitment, lifecycle model of labor supply, marriage and divorce, estimated on pre-reform data, replicates these effects. A large part of the responses occur in anticipation of benefit exhaustion, impacting primarily women with low potential earnings. The reform reduces lifetime utility of women, even allowing for the government savings, but has negligible effects on men. The expectation of marriage attenuates the losses for women and an increased probability of single-motherhood raises them.

* To join the seminar, please contact at
Building: Off Campus Location
Location: Virtual
Event Type: Workshop / Seminar
Tags: Economics, seminar
Source: Happening @ Michigan from Department of Economics, ISR-Zwerdling Seminar in Labor Economics