Regional Welfare Program and Labor Force Participation
AbstractThis paper investigates regional variations in household welfare program and labor force participation behavior in the United States. A choice-theoretic model is developed and estimated for each of the major census regions (Northeast, Midwest, South and West) using cross-section data on households, labor markets, and state policies. We show how the observable heterogeneity across U.S. census regions explains different welfare program participation and workforce outcomes. We find little evidence of differences in behavior with respect to welfare program policies across regions. This finding undermines some of the efficiency rationale for the devolution of authority over welfare programs to the states. We also find evidence that welfare program participation still reduces labor supply in some regions. That finding supports the incentive rationale for the imposition of work requirements.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12589.
Date of creation: 01 Jun 2007
Date of revision:
Publication status: Published in Papers in Regional Science, June 2007, vol. 86 no. 2
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Web page: http://www.econ.iastate.edu
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Other versions of this item:
- Sonya Kostova Huffman & Maureen Kilkenny, 2007. "Regional welfare program and labour force participation," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 215-239, 06.
- Sonya Kostova Huffman & Maureen Kilkenny, 2003. "Regional Welfare Programs and Labor Force Participation," Center for Agricultural and Rural Development (CARD) Publications 02-wp296, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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- Andr�s Rodr�guez-Pose & Vassilis Tselios, 2012.
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- Rodríguez-Pose, Andrés & Tselios, Vassilis, 2011. "Welfare regimes and the incentives to work and get educated," CEPR Discussion Papers 8187, C.E.P.R. Discussion Papers.
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- Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(3), pages 231-247, September.
- Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute for the Study of Labor (IZA).
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