Drug use and AFDC participation: Is there a connection?

Drug use and welfare are two serious social problems that have received widespread public attention. Recently, it has been suggested that illicit drug use is a major cause of welfare, although there is only anecdotal evidence to support such a claim. This article provides the first systematic analysis of the issue by examining the relationship between illicit drug use and welfare participation among a nationally representative sample of young adults. The results indicate that past year drug use, predominantly marijuana use, is positively related to future welfare participation for both nonblack and black women. The magnitude of the drug effect, however, is modest: If drug use among welfare participants were reduced to the levels of nonparticipants, welfare participation would decline by approximately 3 to 5 percent.