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Mixing Welfare and Work: Evidence from the PSID, 1980-87

Author

Listed:
  • Richard Chapman

    (Westminster College)

  • Kevin Duncan

    (University of Southern Colorado)

  • Jerry Gray

    (Willamette University)

Abstract

Evidence from the Panel Survey of Income Dynamics (PSID) suggests that those with a history of mixing welfare and work are more likely to continue mixing rather than be in another welfare or labor market state. This finding supports the view that, without a welfare subsidy, jobs held by working welfare recipients will not provide for self sufficiency. We find no evidence supporting the notion that time spent mixing welfare and work alters individuals' tastes in favor of receiving AFDC (only) relative to working (only). Finally, as conventional theory suggests, the tax changes introduced by OBRA in 1981 discouraged the mixing of welfare and work.

Suggested Citation

  • Richard Chapman & Kevin Duncan & Jerry Gray, 1998. "Mixing Welfare and Work: Evidence from the PSID, 1980-87," Eastern Economic Journal, Eastern Economic Association, vol. 24(1), pages 51-62, Winter.
  • Handle: RePEc:eej:eeconj:v:24:y:1998:i:1:p:51-62
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/eeconj/Volume24/V24N1P51_62.pdf
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    Cited by:

    1. Joseph S. Falzone, 2017. "Labor Force Participation and Educational Attainment in the United States," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 23(3), pages 321-332, August.

    More about this item

    Keywords

    Welfare;

    JEL classification:

    • 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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