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The Effects of Local Labour Market Conditions on Welfare Program Participation

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  • Pan, Suwen
  • Jensen, Helen H.
  • Fuller, Wayne A.

Abstract

A fractional imputation method is applied to Iowa administrative data to deal with a problem of missing data. The effects of local labour market conditions and mobility of household heads on Family Investment Program (FIP) participation are evaluated. Results show that mobility increases the opportunity for employment and decreases the FIP participation rate for low-income families. An increase in predicted unemployment rates decreases labour force participation and increases programme participation; an increase in unpredicted unemployment rates increases labour force participation and decreases programme participation. Overall, the effects are relatively larger in rural areas than in nonrural areas in Iowa.

Suggested Citation

  • Pan, Suwen & Jensen, Helen H. & Fuller, Wayne A., 2006. "The Effects of Local Labour Market Conditions on Welfare Program Participation," Staff General Research Papers Archive 12447, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12447
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    as
    1. Butler, Margaret A. & Beale, Calvin L., 1994. "Rural-Urban Continuum Codes for Metro and Nonmetro Counties, 1993," Staff Reports 278774, United States Department of Agriculture, Economic Research Service.
    2. repec:mpr:mprres:1934 is not listed on IDEAS
    3. P. D. Brandon, "undated". "Vulnerability to future dependence among former AFDC mothers," Institute for Research on Poverty Discussion Papers 1055-95, University of Wisconsin Institute for Research on Poverty.
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