Afdc Receipt and Nonmarital Births: An Examination of Causality

APPLIED ECONOMICS, Vol. 28, 1996

Posted: 28 Apr 1998

See all articles by Lonnie K. Stevans

Lonnie K. Stevans

Hofstra University - Frank G. Zarb School of Business

Abstract

Utilizing a sample of 2,964 unmarried women over the period 1979-88 from the U.S. National Longitudinal Survey of Youth, a test was performed to determine the causal direction of relationship between receipt of aid to families with dependent children (AFDC) and the decision to have a nonmarital birth. The existence of "causality" is defined as the lack of a simultaneous relationship or joint dependency between these variables. One of the most interesting findings was a failure to reject the hypothesis that these choices are jointly determined. Both were found to depend upon variables that are demographic, economic, personal, and family-related. The profiles derived from the specification and estimation of a simultaneous equations system with discrete endogenous variables depict a woman whose fertility and economic decisions were predominantly based on economic deprivation, demographic situation, and family instability.

JEL Classification: J13, I38

Suggested Citation

Stevans, Lonnie K., Afdc Receipt and Nonmarital Births: An Examination of Causality. APPLIED ECONOMICS, Vol. 28, 1996, Available at SSRN: https://ssrn.com/abstract=3237

Lonnie K. Stevans (Contact Author)

Hofstra University - Frank G. Zarb School of Business ( email )

Department of IT/QM
134 Hofstra University
Hempstead, NY 11549
United States
516-463-5375 (Phone)

HOME PAGE: http://www.lonniestevans.com

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