Effects of raising benefits

This is a summary of some of the research into the effects of increasing benefit payment rates. It is from the Colorado Independence Institute during the early 90s. AFDC was the US equivalent of the DPB.

Though the issue is contested, many researchers believe there is a direct link between welfare and illegitimacy, and therefore a long-run link between welfare and crime. For example, a study by M. Anne Hill and June O'Neill (currently director of the Congressional Budget Office) found that a 50 percent increase in afdc and food stamp benefits led to a 75 percent increase in the number of women enrolling in these programs, a sharp rise in the number of years spent on afdc, a 43 percent increase in the number of out-of-wedlock births, and a 117 percent increase in crimes perpetrated by young black males. Researchers from the University of Washington found that a difference of $228 in monthly welfare benefits more than doubled a white teenager's probability of bearing an illegitimate child. Other U.S. and Canadian investigations show that even small increases in welfare benefits raise the odds of women going on welfare and becoming single parents. Roughly half the increase in black illegitimacy since the mid-1960s can be attributed to increased welfare benefits and easier eligibility standards, according to Hill and O'Neill.