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Welfare Reform in Agricultural California

Author

Listed:
  • Green, Richard D.
  • Martin, Philip L.
  • Taylor, J. Edward

Abstract

When welfare reforms were enacted in 1996, a higher than average percentage of residents in the agricultural heartland of California, the San Joaquin Valley, received cash assistance. Average annual unemployment rates during the 1990s ranged from 12% to 20%, and 15% to 20% of residents in major farming counties received cash benefits. This analysis develops and estimates a two-equation cross-sectionally correlated and timewise autoregressive model to test the hypothesis that in agricultural areas, seasonal work, low earnings, and high unemployment, as well as few entry-level jobs that offer wages and benefits equivalent to welfare benefits, promote welfare use and limit the potential of local labor markets to absorb ex-welfare recipients.

Suggested Citation

  • Green, Richard D. & Martin, Philip L. & Taylor, J. Edward, 2003. "Welfare Reform in Agricultural California," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(1), pages 1-15, April.
    • Handle: RePEc:ags:jlaare:30715
    DOI: 10.22004/ag.econ.30715
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    References listed on IDEAS

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    2. Robert F. Schoeni & Rebecca M. Blank, 2000. "What has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," NBER Working Papers 7627, National Bureau of Economic Research, Inc.
    3. Oberhofer, W & Kmenta, J, 1974. "A General Procedure for Obtaining Maximum Likelihood Estimates in Generalized Regression Models," Econometrica, Econometric Society, vol. 42(3), pages 579-590, May.
    4. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
    5. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
    6. Stephan J. Goetz & David Freshwater, 1997. "Effects of Welfare Reform on Rural Counties and Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1608-1613.
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    Cited by:

    1. Martin, Philip L. & Taylor, J. Edward, 2003. "Farm Employment, Immigration, and Poverty: A Structural Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.

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