The American Welfare System: Origins, Structure, and Effects

By Howard Gensler | Go to book overview

11
Behavioral Effects from Welfare

Howard Gensler

The welfare system affects the behavior of people. 634 Like any other economic factor, it does not necessarily affect all people; rather, the effects are detected at the margin. Suppose that a state has a welfare system that pays a mother with two children $500 per month. Suppose further that there are 100 such mothers: 80 who work, and 20 who could work, but have chosen to stay home with their children and collect $500 per month on welfare. Under this very simple scenario, the welfare system has induced 20 mothers to leave the labor force and to enter the welfare system.

Now suppose that this state raises its welfare benefit level by $100 from $500 to $600 per month. Suppose that four mothers drop out of the labor force and go on welfare. Then a 20 percent increase in the welfare benefit level has resulted in a 20 percent increase in welfare participation. The ratio of the relative change in behavior to the relative change in the causal variable is known as the elasticity. Here the elasticity of welfare participation with respect to the guarantee level is 1 (20%/20%).

Economists have studied the effect of welfare benefits on behavior such as welfare program participation and labor force participation. However, two questions arise here. First, what is the effect of welfare on behavior? In other words, if there were no welfare at all, what would the world look like? This question is rarely examined. In a comprehensive review of the literature, Sheldon Danziger, Robert Haveman and Robert Plotnick concluded that the welfare system has reduced the labor supply by 1%, and the social security system has reduced the labor supply by an estimated 4%. 635 The qualitative effect of the Social Security program is far greater than the effect of welfare, however. Social Security affects the nation's most-experienced laborers, while welfare affects the nation's lowest-skilled workers. Social insurance expenditures in 1990 totalled $513 billion versus $146 billion for public aid. 636 The nation spends far more money on social insurance than

-219-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The American Welfare System: Origins, Structure, and Effects
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Preface ix
  • I - The Origins of the American Welfare System 1
  • 1 - The Child and the American Welfare State 3
  • Notes 18
  • 2 - The New View of the Child 23
  • Notes 48
  • 3 - Progressive Priorities 55
  • Notes 69
  • 4 - Child Labor and the Mothers' Pension Movement 73
  • Notes 91
  • 5 - The Democratization of Outdoor Relief 97
  • Notes 120
  • 6 - Child Labor and Southern Patriotism 125
  • Notes 150
  • 7 - Farm Labor and "City-Centered" Child Welfare 155
  • Notes 168
  • 8 - The Case of Mothers' Pensions in Memphis 171
  • Notes 185
  • 9 - The Child and the State 189
  • Notes 194
  • II - The Structure and Effects of Welfare 197
  • 10 - The Structure of the American Welfare System 199
  • Notes 215
  • 11 - Behavioral Effects from Welfare 219
  • Notes 226
  • 12 - Reform 231
  • Notes 235
  • 13 - Welfare Policy: Point and Counterpoint 237
  • Notes 266
  • Bibliography 273
  • Index 289
  • About the Editor and Contributors 295
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 298

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.