abstract: 'We examine the effects of single mothers'' welfare use and employment decisions on children''s short-run cognitive development, as measured by their preschool standardized math test scores. We control for three mechanisms through which these decisions might affect children''s outcomes: direct monetary benefits, parental time invested in the child, and nonpecuniary benefits from in-kind transfer programs such as Medicaid. We employ a correction function approach and control for state-fixed effects to address the endogenous nature of welfare participation and employment decisions. Our estimates suggest that although each additional quarter of either mother''s employment or welfare use results in only a small increase in a child''s standardized math test score, the total effects after several quarters are sizable. We allow mothers'' decisions to have varying effects on attainment by children''s observed innate ability and by the intensity of welfare use and employment. A child who has the mean level of observed innate ability with a mother who simultaneously worked and used welfare in all 20 quarters after childbirth experiences an 8.25 standardized-point increase in standardized scores. The positive impact is more pronounced for the more disadvantaged children, who tend to be born to mothers with low Armed Forces Qualification Test scores, or have lower birth weights. We also examine the effects using timing of employment and welfare use, as well as children''s maturity and gender. (JEL I3, J13, J22)' affiliation: 'Chyi, H (Corresponding Author), Renmin Univ China, Hanqing Adv Inst Econ \& Finance, Beijing, Peoples R China. Chyi, Hau, Renmin Univ China, Hanqing Adv Inst Econ \& Finance, Beijing, Peoples R China. Chyi, Hau, Renmin Univ China, Sch Econ, Beijing, Peoples R China. Ozturk, Orgul Demet, Univ S Carolina, Dept Econ, Moore Sch Business, Columbia, SC 29208 USA.' author: Chyi, Hau and Ozturk, Orgul Demet author-email: 'hauchyi@gmail.com odozturk@moore.sc.edu' author_list: - family: Chyi given: Hau - family: Ozturk given: Orgul Demet da: '2023-09-28' doi: 10.1111/j.1465-7295.2012.00466.x eissn: 1465-7295 files: [] issn: 0095-2583 journal: ECONOMIC INQUIRY keywords-plus: 'MATERNAL EMPLOYMENT; EFFECTS CONSISTENT; CARE CHOICES; HEAD-START; MODEL; ACHIEVEMENT; WORK; EITC' language: English month: JAN number: '1' number-of-cited-references: '35' pages: 675-706 papis_id: f2fa5ab1577febe055d748b5d06f0bdc ref: Chyi2013effectssingle researcherid-numbers: Ozturk, Orgul/ACY-8203-2022 times-cited: '5' title: THE EFFECTS OF SINGLE MOTHERS' WELFARE USE AND EMPLOYMENT DECISIONS ON CHILDREN'S COGNITIVE DEVELOPMENT type: Article unique-id: WOS:000311697500039 usage-count-last-180-days: '0' usage-count-since-2013: '17' volume: '51' web-of-science-categories: Economics year: '2013'