The Psychological Effects of Income Testing Income-Support Benefits

One of the chief arguments against income-tested (welfare) programs, and for their replacement by a system of non-income-tested benefits, is that welfare is "stigmatizing" and therefore has negative psychological consequences for recipients. This study compares single-parent women who are recipients of Aid to Families with Dependent Children (AFDC) with those who are nonrecipients of AFDC on two psychological status measures. It then examines the impacts that entering and leaving AFDC have on psychological well-being (PWB). There are fairly consistent results to suggest that AFDC recipients do have lower PWB than nonrecipients, but there is only mixed support for concluding that entering or leaving AFDC influences PWB.