@techreport{NBERw5555, title = "Drug Use and AFDC Participation: Is There a Connection?", author = "Robert Kaestner", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "5555", year = "1996", month = "May", URL = "http://www.nber.org/papers/w5555", abstract = {Drug use and welfare are two serious social problems that have received widespread public attention. Recently, it has been suggested that illicit drug use is a major cause of welfare, although there is only anecdotal evidence to support such a claim. This paper provides the first systematic analysis of the issue by examining the relationship between illicit drug use and welfare participation among a nationally representative sample of young adults. The results indicate that past year drug use, predominantly marijuana use, is positively related to future welfare participation for both non-black and black women. The magnitude of the drug effect, however, is modest: if drug use among welfare participants was reduced to the levels of non-participants, welfare participation would decline by approximately one percent.}, }