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Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients

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  • Coelli, Michael B.
  • Green, David A.
  • Warburton, William P.

Abstract

We examine the impact of high school graduation on the probability individuals from welfare backgrounds use welfare themselves. Our data consists of administrative educational records for grade 12 students in a Canadian province linked with their own and their parents' welfare records. We address potential endogeneity problems by: 1) controlling for ability using past test scores; 2) using an instrument for graduation based on school principal fixed effects; and 3) using a Heckman- Singer type unobserved heterogeneity estimator. Graduation would reduce welfare receipt of dropoutsby ?to 3/4. Effects are larger for individuals from troubled family backgrounds and low income neighbourhoods.
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  • Coelli, Michael B. & Green, David A. & Warburton, William P., 2007. "Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1369-1398, August.
  • Handle: RePEc:eee:pubeco:v:91:y:2007:i:7-8:p:1369-1398
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    Citations

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    Cited by:

    1. Berg, Nathan & Gabel, Todd, 2010. "New Reform Strategies and Welfare Participation in Canada," MPRA Paper 26591, University Library of Munich, Germany.
    2. Elizabeth Dhuey & Justin Smith, 2014. "How important are school principals in the production of student achievement?," Canadian Journal of Economics, Canadian Economics Association, vol. 47(2), pages 634-663, May.
    3. Coelli, Michael & Green, David A., 2012. "Leadership effects: school principals and student outcomes," Economics of Education Review, Elsevier, vol. 31(1), pages 92-109.
    4. James J. Heckman & John Eric Humphries & Sergio Urzua & Gregory Veramendi, 2010. "The effects of educational choices on labor market, health, and social outcomes," Working Papers 2011-002, Human Capital and Economic Opportunity Working Group.
    5. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
    6. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    7. Rebecca N. Warburton & William P. Warburton, 2004. "Canada Needs Better Data for Evidence-Based Policy: Inconsistencies Between Administrative and Survey Data on Welfare Dependence and Education," Canadian Public Policy, University of Toronto Press, vol. 30(3), pages 241-256, September.
    8. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.

    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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