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The effects of vehicle ownership on employment

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Author Info

  • Baum, Charles L.

Abstract

Vehicle ownership may promote work if employment opportunities and job searches are enhanced by reliable transportation. For example, vehicles may serve to reduce potential physical isolation from employment opportunities. I examine the effects of vehicle ownership and vehicle quality on employment for single mothers with no more than a high school education using National Longitudinal Survey of Youth data. I control for potential bias by jointly estimating employment and vehicle ownership in a maximum likelihood framework using state welfare eligibility asset rules as instruments. Results show that vehicle ownership increases employment. Positive effects of vehicles do not differ for urban and rural residents, but they do change with economic conditions. Further, welfare recipients are significantly more likely to exit the program and become employed if they own a vehicle.

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Bibliographic Info

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

Volume (Year): 66 (2009)
Issue (Month): 3 (November)
Pages: 151-163

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Handle: RePEc:eee:juecon:v:66:y:2009:i:3:p:151-163

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

Related research

Keywords: Employment Vehicles Welfare Spatial mismatch hypothesis;

References

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  1. Steven Raphael & Lorien Rice, 2000. "Car Ownership, Employment, and Earnings," JCPR Working Papers 179, Northwestern University/University of Chicago Joint Center for Poverty Research.
  2. Paul M. Ong, 2002. "Car ownership and welfare-to-work," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 239-252.
  3. Steven Raphael & Michael A. Stoll, 2000. "Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps," JCPR Working Papers 200, Northwestern University/University of Chicago Joint Center for Poverty Research.
  4. Raphael, Steven & Stoll, Michael, 2000. "Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?," University of California Transportation Center, Working Papers qt4fq193gk, University of California Transportation Center.
  5. James X. Sullivan, 2005. "Welfare Reform, Saving, and Vehicle Ownership: Do Asset Limits and Vehicle Exemptions Matter?," Upjohn Working Papers and Journal Articles 05-117, W.E. Upjohn Institute for Employment Research.
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  13. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-76, March.
  14. Stoll, Michael A., 1999. "Spatial Job Search, Spatial Mismatch, and the Employment and Wages of Racial and Ethnic Groups in Los Angeles," Journal of Urban Economics, Elsevier, vol. 46(1), pages 129-155, July.
  15. Blau, David M, 1994. "Labor Force Dynamics of Older Men," Econometrica, Econometric Society, vol. 62(1), pages 117-56, January.
  16. H. J. Holzer & K. R. Ihlanfeldt, . "Spatial factors and the employment of blacks at the firm level," Institute for Research on Poverty Discussion Papers 1086-96, University of Wisconsin Institute for Research on Poverty.
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  18. Evelyn Blumenberg & Paul Ong, 1998. "Job accessibility and welfare usage: Evidence from Los Angeles," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(4), pages 639-657.
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  20. Erik Hurst & James P. Ziliak, 2006. "Do Welfare Asset Limits Affect Household Saving?: Evidence from Welfare Reform," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
  21. Gurley, Tami & Bruce, Donald, 2005. "The effects of car access on employment outcomes for welfare recipients," Journal of Urban Economics, Elsevier, vol. 58(2), pages 250-272, September.
  22. Marilyn Lucas & Charles Nicholson, 2003. "Subsidized vehicle acquisition and earned income in the transition from welfare to work," Transportation, Springer, vol. 30(4), pages 483-501, November.
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  24. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
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Citations

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Cited by:
  1. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos N., 2010. "Labour supply and commuting," Journal of Urban Economics, Elsevier, vol. 68(1), pages 82-89, July.
  2. Pieter A. Gautier & Yves Zenou, 2008. "Car ownership and the Labor Market of Ethnic Minorities," Tinbergen Institute Discussion Papers 08-106/3, Tinbergen Institute.
  3. Thakuriah (Vonu), Piyushimita & Persky, Joseph & Soot, Siim & Sriraj, P.S., 2013. "Costs and benefits of employment transportation for low-wage workers: An assessment of job access public transportation services," Evaluation and Program Planning, Elsevier, vol. 37(C), pages 31-42.
  4. Fredrik Andersson & John C. Haltiwanger & Mark J. Kutzbach & Henry O. Pollakowski & Daniel H. Weinberg, 2014. "Job Displacement and the Duration of Joblessness: The Role of Spatial Mismatch," NBER Working Papers 20066, National Bureau of Economic Research, Inc.
  5. Antonio Di Paolo & Anna Matas & Josep Lluís Raymond, 2014. "“Job Accessibility, Employment and Job-Education Mismatch in the Metropolitan Area of Barcelona”," IREA Working Papers 201419, University of Barcelona, Research Institute of Applied Economics, revised May 2014.
  6. Ellickson, Paul B. & Grieco, Paul L.E., 2013. "Wal-Mart and the geography of grocery retailing," Journal of Urban Economics, Elsevier, vol. 75(C), pages 1-14.

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