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The Employment Dynamics of Disadvantaged Women: Evidence from the SIPP

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  • John C. Ham
  • Xianghong Li
  • Lara D. Shore-Sheppard

Abstract

Understanding the employment dynamics of disadvantaged families is increasingly important. We estimate duration models describing these dynamics for disadvantaged single mothers and use them to conduct a rich set of counterfactual analyses. We use a misreporting model to correct for "seam bias," the problem that too many transitions are reported between reference periods in panel data. We find effects of demographics, minimum wages, unemployment rates, and maximum welfare benefits, but not policy changes introduced through state welfare waivers, on employment dynamics. We find that two commonly used ad hoc methods of addressing seam bias perform substantially worse than our approach.

Suggested Citation

  • John C. Ham & Xianghong Li & Lara D. Shore-Sheppard, 2016. "The Employment Dynamics of Disadvantaged Women: Evidence from the SIPP," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 899-944.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/686274
    DOI: 10.1086/686274
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    3. Marco Angrisani & Arie Kapteyn & Scott Schuh, 2014. "Measuring Household Spending and Payment Habits: The Role of "Typical" and "Specific" Time Frames in Survey Questions," NBER Chapters, in: Improving the Measurement of Consumer Expenditures, pages 414-440, National Bureau of Economic Research, Inc.
    4. Michelle S. Goeree & John C. Ham & Daniela Iorio, 2009. "Caught in the Bulimic Trap? Socioeconomic Status, State Dependence, and Unobserved Heterogeneity," Working Papers 386, Barcelona School of Economics.
    5. Asli Beyhan Acar & Mine Afacan Findikli, 2020. "Employment of disadvantaged groups in OECD countries: A comparative study with MDS analysis," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 330-342, July.
    6. Arulampalam, Wiji & Corradi, Valentina & Gutknecht, Daniel, 2017. "Modeling heaped duration data: An application to neonatal mortality," Journal of Econometrics, Elsevier, vol. 200(2), pages 363-377.
    7. Ham, John C. & Weinberg, Bruce A., 2017. "Novelty, Knowledge Spillovers and Innovation: Evidence from Nobel Laureates," GLO Discussion Paper Series 30, Global Labor Organization (GLO).
    8. Ham, John C. & Woutersen, Tiemen, 2011. "Calculating Confidence Intervals for Continuous and Discontinuous Functions of Estimated Parameters," IZA Discussion Papers 5816, Institute of Labor Economics (IZA).
    9. David Powell, 2020. "Does Labor Supply Respond to Transitory Income? Evidence from the Economic Stimulus Payments of 2008," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 1-38.
    10. Stephanie Riegg Cellini & Signe-Mary McKernan & Caroline Ratcliffe, 2008. "The dynamics of poverty in the United States: A review of data, methods, and findings," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 577-605.

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