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Can work alter welfare recipients' beliefs?

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  • Peter Gottschalk

    (Boston College)

Abstract

A common argument in support of work-based welfare reform is that exposure to work will lead welfare recipients to revise their beliefs about how they will be treated in the labor market. This paper explores the analytical and empirical basis for this argument. The difficulty in testing the assumption that work leads to a change in beliefs is that there is an inherent simultaneity between work and beliefs. Welfare recipients who work may have different beliefs because they learn about the world of work once they enter the labor market. Alternatively, welfare recipients who have a more positive view of work are the ones who are more likely to work. We use a unique data set that helps solve this simultaneity problem. We find that exogenous increases in work induced by an experimental tax credit led to the predicted change in beliefs among younger workers. © 2005 by the Association for Public Policy Analysis and Management

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File URL: http://hdl.handle.net/10.1002/pam.20111
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

Volume (Year): 24 (2005)
Issue (Month): 3 ()
Pages: 485-498

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Handle: RePEc:wly:jpamgt:v:24:y:2005:i:3:p:485-498

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Web page: http://www3.interscience.wiley.com/journal/34787/home

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  1. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 35(4), pages 815-29, October.
  2. Greg J. Duncan & James N. Morgan, 1981. "Sense of Efficacy and Subsequent Change in Earnings-A Replication," Journal of Human Resources, University of Wisconsin Press, vol. 16(4), pages 649-657.
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Cited by:
  1. Barón, Juan D. & Cobb-Clark, Deborah A., 2010. "Are Young People's Educational Outcomes Linked to their Sense of Control?," IZA Discussion Papers 4907, Institute for the Study of Labor (IZA).
  2. Jill Marie Gunderson & Julie L. Hotchkiss, 2006. "Welfare recipiency, job separation outcomes, and postseparation earnings: insight from linked personnel and state administrative data," Working Paper, Federal Reserve Bank of Atlanta 2006-07, Federal Reserve Bank of Atlanta.
  3. James Heckman & Tim Kautz, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," Working Papers, Human Capital and Economic Opportunity Working Group 2013-019, Human Capital and Economic Opportunity Working Group.
  4. James J. Heckman & Tim D. Kautz, 2012. "Hard Evidence on Soft Skills," NBER Working Papers 18121, National Bureau of Economic Research, Inc.
  5. Schurer, Stefanie, 2014. "Bouncing Back from Health Shocks: Locus of Control, Labor Supply, and Mortality," IZA Discussion Papers 8203, Institute for the Study of Labor (IZA).
  6. Robert Kaestner & Elizabeth Tarlov, 2006. "Changes in the welfare caseload and the health of low-educated mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 25(3), pages 623-643.
  7. Barón, Juan D. & Cobb-Clark, Deborah A. & Erkal, Nisvan, 2008. "Cultural Transmission of Work-Welfare Attitudes and the Intergenerational Correlation in Welfare Receipt," IZA Discussion Papers 3904, Institute for the Study of Labor (IZA).
  8. Deborah Cobb-Clark & Stefanie Schurer, 2011. "Two Economists' Musings on the Stability of Locus of Control," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2011n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  9. Mendolia, Silvia & Walker, Ian, 2014. "The Effect of Personality Traits on Subject Choice and Performance in High School: Evidence from an English Cohort," IZA Discussion Papers 8269, Institute for the Study of Labor (IZA).
  10. Lindsey Jeanne Leininger & Ariel Kalil, 2008. "Cognitive and non-cognitive predictors of success in adult education programs: Evidence from experimental data with low-income welfare recipients," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 27(3), pages 521-535.
  11. Zabel, Jeffrey & Schwartz, Saul & Donald, Stephen, 2006. "An Econometric Analysis of the Impact of the Self-Sufficiency Project on the Employment Behaviour of Former Welfare Recipients," IZA Discussion Papers 2122, Institute for the Study of Labor (IZA).
  12. Ayala, Luis & Rodríguez, Magdalena, 2013. "Health-related effects of welfare-to-work policies," Social Science & Medicine, Elsevier, Elsevier, vol. 93(C), pages 103-112.

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