Did the AFDC program succeed in keeping mothers and young children living together?

Critics of welfare reform claim that children will leave their mother's care in states that restrict benefits because mothers will lack sufficient income to raise children. This article investigates these claims and the relationship between the generosity of welfare benefits and children's living arrangements. I found that mother-child separations were lower in states with higher welfare benefits, suggesting that higher welfare benefits lower the cost to single mothers of raising children. Given reluctance among states to provide income support for families, this suggests that policies designed to reduce welfare dependence may raise rates of mother-child separations.