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Regional welfare program and labour force participation

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  • Sonya Kostova Huffman
  • Maureen Kilkenny

Abstract

. This paper investigates regional variations in household welfare program and labour force participation behaviour in the United States. A choice‐theoretic model is developed and estimated for each of the major census regions (Northeast, Midwest, South and West) using cross‐section data on households, labour markets, and state policies. We show how the observable heterogeneity across U.S. census regions explains different welfare program participation and workforce outcomes. We find little evidence of differences in behaviour with respect to welfare program policies across regions. This finding undermines some of the efficiency rationale for the devolution of authority over welfare programs to the states. We also find evidence that welfare program participation still reduces labour supply in some regions. That finding supports the incentive rationale for the imposition of work requirements. Abstract. Este artículo investiga las variaciones regionales en un programa de asistencia social para hogares y comportamiento de participación de mano de obra en los Estados Unidos. Para cada una de las principales regiones censuales (noreste, medio oeste, sur y oeste) se desarrolla y estima un modelo de teoría de la elección usando datos transversales sobre hogares, mercados de mano de obra, y políticas estatales. Mostramos como la heterogeneidad observable en las regiones censuales estadounidenses explican las diferencias en la participación en programas de asistencia social y en los resultados para la mano de obra. Encontramos escasa evidencia de diferencias en comportamiento entre regiones con respecto a políticas de programas de asistencia social. Este hallazgo pone en duda parte del argumento de eficacia de la devolución a los estados de la competencia en programas de asistencia social. También hallamos evidencia de que la participación en programas de asistencia social todavía reduce la oferta de mano de obra en algunas regiones. Dicho hallazgo apoya el argumento del incentivo en la imposición de obligación de trabajar.

Suggested Citation

  • Sonya Kostova Huffman & Maureen Kilkenny, 2007. "Regional welfare program and labour force participation," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 215-239, June.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:215-239
    DOI: 10.1111/j.1435-5957.2007.00120.x
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    1. W. Michael Cox & Jason L. Saving, 2000. "Some pleasant economic side effects," Southwest Economy, Federal Reserve Bank of Dallas, issue Jul, pages 7-9.
    2. Jeffrey Grogger, 2004. "Time Limits and Welfare Use," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    3. 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.
    4. Moffitt, Robert A., 2002. "Welfare programs and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 34, pages 2393-2430, Elsevier.
    5. 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.
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    2. Andrés Rodríguez-Pose & Vassilis Tselios, 2012. "Welfare Regimes and the Incentives to Work and Get Educated," Environment and Planning A, , vol. 44(1), pages 125-149, January.
    3. Udaya R. Wagle, 2012. "The Food Stamps Program and Economic Security Among Low‐Income Families, Part I," Poverty & Public Policy, John Wiley & Sons, vol. 4(4), pages 223-238, December.
    4. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 231-247, September.
    5. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute of Labor Economics (IZA).
    6. Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2009. "Investigating Thai Shopping Behavior: Wet-Markets, Supermarkets and the ‘Big Middle’," 2009 Conference, August 16-22, 2009, Beijing, China 50332, International Association of Agricultural Economists.

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