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Regional Welfare Program and Labor Force Participation

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  • Huffman, Sonya K.
  • Kilkenny, Maureen

Abstract

This paper investigates regional variations in household welfare program and labor force participation behavior 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, labor 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 behavior 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 labor supply in some regions. That finding supports the incentive rationale for the imposition of work requirements.

Suggested Citation

  • Huffman, Sonya K. & Kilkenny, Maureen, 2007. "Regional Welfare Program and Labor Force Participation," Staff General Research Papers Archive 12589, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12589
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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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    Cited by:

    1. 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.
    2. 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.
    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. 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).
    5. Udaya R. Wagle, 2013. "The Food Stamps Program and Economic Security Among Low‐Income Families, Part II: The Effects of Labor and Income," Poverty & Public Policy, John Wiley & Sons, vol. 5(2), pages 162-179, June.
    6. 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.

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