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Welfare Reform in Agricultural California

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Author Info

  • Green, Richard D.
  • Martin, Philip L.
  • Taylor, J. Edward
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    Abstract

    When welfare reforms were enacted in 1996, a higher than average percentage of residents in the agricultural heartland of California, the San Joaquin Valley, received cash assistance. Average annual unemployment rates during the 1990s ranged from 12% to 20%, and 15% to 20% of residents in major farming counties received cash benefits. This analysis develops and estimates a two-equation cross-sectionally correlated and timewise autoregressive model to test the hypothesis that in agricultural areas, seasonal work, low earnings, and high unemployment, as well as few entry-level jobs that offer wages and benefits equivalent to welfare benefits, promote welfare use and limit the potential of local labor markets to absorb ex-welfare recipients.

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    File URL: http://purl.umn.edu/30715
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 28 (2003)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:jlaare:30715

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: cross-sectionally correlated and timewise autoregressive model; farm workers; immigration; welfare reform; Public Economics;

    References

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    1. Oberhofer, W & Kmenta, J, 1974. "A General Procedure for Obtaining Maximum Likelihood Estimates in Generalized Regression Models," Econometrica, Econometric Society, vol. 42(3), pages 579-90, May.
    2. Stephan J. Goetz & David Freshwater, 1997. "Effects of Welfare Reform on Rural Counties and Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1608-1613.
    3. Robert F. Schoeni & Rebecca M. Blank, 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Working Papers 00-02, RAND Corporation Publications Department.
    4. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
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    Cited by:
    1. Martin, Philip L. & Taylor, J. Edward, 2003. "Farm Employment, Immigration, and Poverty: A Structural Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.

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