Spillover Effects of Welfare Reforms in State Labor Markets
AbstractThis paper estimates the effects of welfare reforms on a state's employment and wage rates. Welfare reforms include: pushing welfare recipients into the labor force, financial incentives to recipients for working, wage subsidies to employers of recipients, and community service jobs for recipients. The effects of these policies are analyzed using a newly estimated model of state labor markets. Simulations show that jobs found by welfare reform participants cause sizable displacement effects for nonparticipants. Displacement effects of labor supply policies are highest when a state's unemployment is high, whereas displacement effects of labor demand policies are highest when a state's unemployment is low. Copyright 2002 Blackwell Publishers
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Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number tjb2002jrs.
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Note: Appears in Journal of Regional Science 42(4): 667-701
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welfare reform; states; labor markets; labor supply;
Other versions of this item:
- Timothy J. Bartik, 2002. "Spillover Effects of Welfare Reforms in State Labor Markets," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 42(4), pages 667-701.
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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- Peter Schaeffer & Tesfa Gebremedhin, 2004. "Labor Market Size and Unemployment Duration: A Theoretical Note," Working Papers 200408, Regional Research Institute, West Virginia University.
- Robert Pollin & Jeannette Wicks-Lim & Heidi Garrett-Peltier, 2009. "Green Prosperity: How Clean-Energy Policies Can Fight Poverty and Raise Living Standards in the United States," Published Studies, Political Economy Research Institute, University of Massachusetts at Amherst green_prosperity, Political Economy Research Institute, University of Massachusetts at Amherst.
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