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What Mean Impacts Miss:Distributional Effects of Welfare Reform Experiments

Author

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  • Hilary W. Hoynes
  • Marianne P Bitler
  • Jonah Gelbach

    (Department of Economics, University of California Davis)

Abstract

Labor supply theory predicts systematic heterogeneity in the impact of recent welfare reformson earnings, transfers, and income. Yet most welfare reform research focuses on meanimpacts. We investigate the importance of heterogeneity using random-assignment data fromConnecticut's Jobs First waiver, which features key elements of post-1996 welfare programs.Estimated quantile treatment effects exhibit the substantial heterogeneity predicted by laborsupply theory. Thus mean impacts miss a great deal. Looking separately at samples of dropoutsand other women does not improve the performance of mean impacts. We conclude that welfarereform's effects are likely both more varied and more extensive than has been recognized.

Suggested Citation

  • Hilary W. Hoynes & Marianne P Bitler & Jonah Gelbach, 2005. "What Mean Impacts Miss:Distributional Effects of Welfare Reform Experiments," Working Papers 36, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:36
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    References listed on IDEAS

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    More about this item

    Keywords

    labor; welfare; reform;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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