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Welfare Reform in Agricultural California

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  • 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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    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    2. 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.
    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. 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.
    5. 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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