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Does residential location matter to the employment of TANF recipients Evidence from a dynamic discrete choice model with unobserved effects

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  • Gurmu, Shiferaw
  • Ihlanfeldt, Keith R.
  • Smith, William J.

Abstract

We study the factors affecting the employment probability of temporary assistance for needy families (TANF) recipients using recent quarterly panel data from Atlanta, Georgia. A central focus of our study is to determine whether the TANF recipient's proximity to job opportunity and the availability of childcare affect her probability of full-time employment. Both static and dynamic models of employment choice are estimated that control for unobserved individual effects. We estimate models separately for a sub-sample of TANF recipients living in public housing, whose residential locations can be considered exogenously determined. We find substantial evidence that individual and family characteristics (such as, the education of the recipient and the number of children and adults in her family) are important determinants of the employment probability of welfare recipients. On the other hand, location-related variables are found to be relatively unimportant.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 1 (January)
Pages: 325-351

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Handle: RePEc:eee:juecon:v:63:y:2008:i:1:p:325-351

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Welfare-to-work Space Dynamic panel data Public housing residents;

References

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  1. Lawrence Katz & B. Jeffrey Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," Working Papers 820, Princeton University, Department of Economics, Industrial Relations Section..
  2. Hsiao,Cheng, 2003. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9780521522717, December.
  3. Cervero, Robert, 1994. "Transit-based housing in California: evidence on ridership impacts," Transport Policy, Elsevier, vol. 1(3), pages 174-183, June.
  4. Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, vol. 43(1), pages 79-111, January.
  5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
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Cited by:
  1. Aslund, Olof & Östh, John & Zenou, Yves, 2006. "How Important is Access to Jobs? Old Question - Improved Answer," CEPR Discussion Papers 5586, C.E.P.R. Discussion Papers.
  2. Felix Weinhardt, 2010. "Moving into the projects: social housing neighbourhoods and school performance in England," LSE Research Online Documents on Economics 33612, London School of Economics and Political Science, LSE Library.
  3. Krupka, Douglas J. & Noonan, Douglas S., 2008. "Empowerment Zones, Neighborhood Change and Owner Occupied Housing," IZA Discussion Papers 3320, Institute for the Study of Labor (IZA).

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