Welfare Reform in Agricultural California
When welfare reforms were enacted in 1996, a higher than average percentage of residents in the agricultural heartland of California, the San Joaquin Valley, received cash assistance. Average annual unemployment rates during the 1990s ranged from 12% to 20%, and 15% to 20% of residents in major farming counties received cash benefits. This analysis develops and estimates a two-equation cross-sectionally correlated and timewise autoregressive model to test the hypothesis that in agricultural areas, seasonal work, low earnings, and high unemployment, as well as few entry-level jobs that offer wages and benefits equivalent to welfare benefits, promote welfare use and limit the potential of local labor markets to absorb ex-welfare recipients.
Volume (Year): 28 (2003)
Issue (Month): 01 (April)
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- Lawrence F. Katz & Kevin M. Murphy, 1992.
"Changes in Relative Wages, 1963–1987: Supply and Demand Factors,"
The Quarterly Journal of Economics,
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- Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
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