A Conceptual Basis for the Study of Welfare Reform Effects.

by Dennis N. De Tray

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A nontechnical description of the "household production model" and a cursory analysis (using the model) of the effects of welfare reform on family behavior. This model is a representation of a household that could be used to predict the economic response of a family to welfare reform. It takes into account the value to families of "home time," that is, of time spent while not--in the familiar sense--gainfully employed. By including this factor, the model reveals a number of interactions among family member characteristics not perceptible in traditional analyses. It shows that such welfare-reform bills as those recently proposed may precipitate types of family behavior among the recipients of welfare aid that they were intended to inhibit--e.g., an increase in number of children raised--or types of behavior for which the community is not prepared--e.g., rising demand for education. 45 pp. Ref.

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