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Car Ownership and Welfare-to-Work

Author

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  • Ong, Paul M.

Abstract

This study examines the role of car ownership in facilitating employment among recipients under the current welfare-to-work law. Because of a potential problem with simultaneity, the analysis uses an instrumental variable constructed from insurance premiums and population density for car ownership. The data comes from a 1999-2000 survey of TANF recipients in the Los Angeles metropolitan area. The empirical results show a significant independent contribution of car ownership on employment. The presence of an observed ownership is associated with 12 percentage point increase in the odds of being employed. Moreover, the results indicate that lowering insurance premiums by $100 can increase the odds of employment by 4 percentage points.

Suggested Citation

  • Ong, Paul M., 2001. "Car Ownership and Welfare-to-Work," University of California Transportation Center, Working Papers qt81v246mr, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt81v246mr
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    Cited by:

    1. Elisa Birch & David Marshall, 2016. "The Association Between Indigenous Australians' Labour Force Participation Rates and Access to Transport," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 91-110.
    2. Priest, Lachlan, 2021. "Transport Access and the Labour Market in the United States," Warwick-Monash Economics Student Papers 17, Warwick Monash Economics Student Papers.

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