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Empirical Analysis of the Effects of Joint Decisions on Food Stamp Program, Temporary Assistance for Needy Families, and Labor Force Participation (An

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Huffman, Sonya Kostova
Jensen, Helen H.

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Abstract

This study examines the interaction between Food Stamp Program (FSP) and Temporary Assistance for Needy Families (TANF) program participation, provides a model of joint decisions made by households on FSP, TANF, and labor force participation, and explains why households choose different alternatives. We use the first Survey of Program Dynamics (SPD) longitudinal data and the 1998 SPD experimental data files. The modeling component consists of estimating equations to predict the probability of particular choices made by households. The households choose the alternative that gives the highest utility. The results show that the program parameters do matter. Variations across states in payment standards, benefit reduction rates, and income disregards help to identify household choices. Keywords: labor force participation, Food Stamp Program, FSP, TANF, Temporary Assistance for Needy Families.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10045.

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Date of creation: 24 Sep 2002
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Handle: RePEc:isu:genres:10045

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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  1. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October. [Downloadable!] (restricted)
  2. Fraker, Thomas & Moffitt, Robert, 1988. "The effect of food stamps on labor supply : A bivariate selection model," Journal of Public Economics, Elsevier, vol. 35(1), pages 25-56, February. [Downloadable!] (restricted)
  3. Robert F. Schoeni & Rebecca M. Blank, 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Working Papers 00-02, RAND Corporation Publications Department. [Downloadable!]
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  4. Hoynes, Hilary Williamson, 1996. "Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation under AFDC-UP," Econometrica, Econometric Society, vol. 64(2), pages 295-332, March. [Downloadable!] (restricted)
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  5. M. Keane & R. Mofitt, 1995. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," Working Papers 95-4, Brown University, Department of Economics.
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  6. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
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