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Does Welfare Participation Affect Women's Wages?

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  • Mary C. Noonan
  • Colleen M. Heflin

Abstract

Objectives. This study examines how welfare participation and employment affect women's wages. Methods. We use longitudinal data from the 1996 Survey of Income and Program Participation and fixed‐effects regression models to test our hypotheses. Results. Our results indicate that time spent on welfare while unemployed results in a wage penalty that is similar to the penalty associated with nonwelfare work breaks. Time spent on welfare while employed has no effect on wages, unlike the strong positive impact of nonwelfare work periods. Conclusions. Working while on welfare does appear to prevent further wage deterioration, but does not lead to substantial wage growth.

Suggested Citation

  • Mary C. Noonan & Colleen M. Heflin, 2005. "Does Welfare Participation Affect Women's Wages?," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 1123-1145, December.
    • Handle: RePEc:bla:socsci:v:86:y:2005:i:s1:p:1123-1145
    DOI: 10.1111/j.0038-4941.2005.00339.x
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    References listed on IDEAS

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    1. Helen Connolly & Peter T. Gottschalk, 2001. "Returns to Tenure and Experience Revisited -- Do Less Educated Workers Gain Less from Work Experience?," JCPR Working Papers 224, Northwestern University/University of Chicago Joint Center for Poverty Research.
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