Work, Welfare, and Poverty among Black Female-Headed Families

Callaway and Vedder's I)overty-wNelfare curve suggests that Nwelfare paynients tend to pro(luce an income enhancement effect which removes families from p)overty until 0so1e threshold, beyond which increased payments engen(ler a work disincentive effect resulting in increased rates of poverty. State level poverty rates among black, female-headed families are employed to evaluate the regional operation of the p)overty-welfare curve. Some supl)port for this position is detected. I however, an application of the Expansion NMJethod indicates that the p)arameters of the curve are sensitive to characteristics of regional lahor inarkets. The work disincentive/incomne enhancement effects are f found to he dleI)endent upon uinemployment and the presence of gender-segregated occupational categories. Estimates of the welfare threshold for states are used to recommnen(d adjustments in state AF1D) payments.

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