Presents an econometric analysis of the interactions between unemployment and Aid to Families with Dependent Children. Information on a model of the welfare system; Discussion of an expenditure adjustment equation; Social and political factors that influence the demand and supply of assistance...

Public assistance is treated here as a transaction with a demand and a supply side. The theory of demand is explored under a hypothetical condition of free choice to individuals between wage income and relief income. Then, more realistic situations are examined in which able-bodied individuals...