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Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients

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  • Coelli, Michael B.
  • Green, David A.
  • Warburton, William P.

Abstract

We examine the impact of high school graduation on the probability individuals from welfare backgrounds use welfare themselves. Our data consists of administrative educational records for grade 12 students in a Canadian province linked with their own and their parents' welfare records. We address potential endogeneity problems by: 1) controlling for ability using past test scores; 2) using an instrument for graduation based on school principal fixed effects; and 3) using a Heckman- Singer type unobserved heterogeneity estimator. Graduation would reduce welfare receipt of dropoutsby Ý to 3/4. Effects are larger for individuals from troubled family backgrounds and low income neighbourhoods.

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Bibliographic Info

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

Volume (Year): 91 (2007)
Issue (Month): 7-8 (August)
Pages: 1369-1398

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Handle: RePEc:eee:pubeco:v:91:y:2007:i:7-8:p:1369-1398

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Web page: http://www.elsevier.com/locate/inca/505578

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References

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  5. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "2001 Lawrence R. Klein Lecture Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 361-422, 05.
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  15. Arild Aakvik & James J. Heckman & Edward J. Vytlacil, 2000. "Treatment Effects for Discrete Outcomes when Responses to Treatment Vary Among Observationally Identical Persons: An Application to Norwegian ..," NBER Technical Working Papers 0262, National Bureau of Economic Research, Inc.
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  24. James J. Heckman & Justin L. Tobias & Edward Vytlacil, 2000. "Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling," NBER Working Papers 7950, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(3), pages 437-467, September.
  2. James J. Heckman & John Eric Humphries & Sergio Urzua & Gregory Veramendi, 2010. "The effects of educational choices on labor market, health, and social outcomes," Working Papers 2011-002, Human Capital and Economic Opportunity Working Group.
  3. Berg, Nathan & Gabel, Todd, 2010. "New Reform Strategies and Welfare Participation in Canada," MPRA Paper 26591, University Library of Munich, Germany.
  4. Rebecca N. Warburton & William P. Warburton, 2004. "Canada Needs Better Data for Evidence-Based Policy: Inconsistencies Between Administrative and Survey Data on Welfare Dependence and Education," Canadian Public Policy, University of Toronto Press, vol. 30(3), pages 241-256, September.
  5. Dhuey, Elizabeth & Smith, Justin, 2011. "How Important are School Principals in the Production of Student Achievement?," CLSSRN working papers clsrn_admin-2011-33, Vancouver School of Economics, revised 23 Dec 2011.

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