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Regional welfare program and labour force participation

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  • Sonya Kostova Huffman
  • Maureen Kilkenny

Abstract

This paper investigates regional variations in household welfare program and labour force participation behaviour 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, labour 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 behaviour 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 labour supply in some regions. That finding supports the incentive rationale for the imposition of work requirements. Copyright (c) 2007 the author(s). Journal compilation (c) 2007 RSAI.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 86 (2007)
Issue (Month): 2 (06)
Pages: 215-239

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Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:215-239

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190

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Cited by:
  1. 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.
  2. Andrés Rodríguez-Pose & Vassilis Tselios, 2011. "Welfare regimes and the incentives to work and get educated," Working Papers 2011-01, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  3. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute for the Study of Labor (IZA).
  4. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(3), pages 231-247, September.

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