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An empirical analysis of joint decisions on labour supply and welfare participation

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  • Kang, Gi Choon
  • Huffman, Sonya K.
  • Jensen, Helen H.

Abstract

Economic and welfare programme factors affect the wellbeing of low-income families and their labour supply decisions. This study uses recent data from the US Survey of Income and Programme Participation. A nested logit model is estimated to explain the joint decisions to participate in Temporary Assistance for Needy Families (TANF) and the labour market for the population of families potentially eligible for TANF. The empirical findings indicate that higher wages increase labour and decrease welfare programme participation; an increase in non-labour income decreases both labour market and welfare participation.

Suggested Citation

  • Kang, Gi Choon & Huffman, Sonya K. & Jensen, Helen H., 2004. "An empirical analysis of joint decisions on labour supply and welfare participation," ISU General Staff Papers 200401010800001379, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200401010800001379
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    3. Paul A. Hagstrom, 1996. "The Food Stamp Participation and Labor Supply of Married Couples: An Empirical Analysis of Joint Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 383-403.
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    Cited by:

    1. Cyrine Hannafi & Rémi Le Gall & François Legendre, 2022. "Recours et non-recours à la prime d’activité : une évaluation en termes de bien-être," Revue économique, Presses de Sciences-Po, vol. 73(5), pages 841-873.
    2. Hui Li & Mukti Upadhyay, 2008. "Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-4.
    3. Peter Haan, 2006. "Much ado about nothing: conditional logit vs. random coefficient models for estimating labour supply elasticities," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 251-256.

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