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The Correlates of Work in a Post-AFDC World: The Results from a Longitudinal State-Level Analysis

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  • Lewis, Dan

    ()
    (Northwestern University)

  • Konstantopoulos, Spyros

    ()
    (Michigan State University)

  • Altenbernd, Lisa

    ()
    (Northwestern University)

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    Abstract

    Much of the research that has followed welfare reform and new policies such as the Temporary Assistance for Needy Families (TANF) has focused on identifying the variations in how different states have put the new policy into practice. Less is known however, about how this new policy affects the ability of recipients to earn a living through work. We use panel data from the state of Illinois and examine what explains labor force participation and performance among current and recent TANF recipients. We use both cross-sectional and longitudinal methods to analyze our data. Our results indicate that human capital factors such as education, job skills, and health are important determinants of labor market participation and performance. In addition, we find that long term welfare recipients are equally likely to participate and perform well in the labor market as shorter term welfare recipients. Finally, government housing subsidy appeared to have a positive effect on labor force participation and performance.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1626.

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    Length: 35 pages
    Date of creation: Jun 2005
    Date of revision:
    Handle: RePEc:iza:izadps:dp1626

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    Keywords: welfare; employment; earnings;

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    1. Sanders Korenman & David Neumark, 1991. "Does Marriage Really Make Men More Productive?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 282-307.
    2. Harry J. Holzer & Michael A. Stoll, 2003. "Employer Demand for Welfare Recipients by Race," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 21(1), pages 210-241, January.
    3. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz & Lisa Sanbonmatsu, 2004. "Moving To Opportunity And Tranquility: Neighborhood Effects On Adult Economic Self-Sufficiency And Health From A Randomized Housing Voucher Experiment," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing. 247, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    4. Smith, James P & Welch, Finis R, 1989. "Black Economic Progress after Myrdal," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 27(2), pages 519-64, June.
    5. Sheldon Danziger & Colleen M. Heflin & Mary E. Corcoran & Elizabeth Oltmans & Hui-Chen Wang, 2002. "Does it pay to move from welfare to work?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 671-692.
    6. Jeffrey R. Kling & Jens Ludwig & Lawrence F. Katz, 2004. "Neighborhood Effects on Crime for Female and Male Youth: Evidence from a Randomized Housing Voucher Experiment," NBER Working Papers 10777, National Bureau of Economic Research, Inc.
    7. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(1), pages 1-61, March.
    8. Sheldon Danziger & Colleen M. Heflin & Mary Corcoran & Elizabeth Oltmans, 2002. "Does it Pay to Move from Welfare to Work?," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 254, Northwestern University/University of Chicago Joint Center for Poverty Research.
    9. Lawrence Katz & Jeffrey R. Kling & B. Jeffrey Liebman & Lisa Sanbonmatsu, 2004. "Moving to Opportunity and Tranquility: Neighborhood Effects on Adult Economic Self-Sufficiency and Health From a Randomized Housing Voucher Experiment," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 860, Princeton University, Department of Economics, Industrial Relations Section..
    10. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 4(4), pages 25-45, Fall.
    11. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, Springer, vol. 24(4), pages 135-143, June.
    12. Laura Stander Connolly, 2000. "The Effect of Welfare Reform on the Incomes and Earnings of Low-Income Families: Evidence from the Current Population Survey," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 181, Northwestern University/University of Chicago Joint Center for Poverty Research.
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