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Evaluating the impacts of Washington state repeated job search services on the earnings of prime-age female TANF recipients

Listed author(s):
  • Yan Shen

    (China Center for Economic Research, Peking University, PR China)

  • Greg Weeks

    (Employment Security Department, Labor Market and Economic Analysis Branch, Olympia, Washington, USA)

  • Cheng Hsiao

    (Department of Economics, University of Southern California, California, USA; and Wang Yanan Institute for Studies in Economics, Xiamen University, PR China)

  • Boqing Wang

    (Department of Social and Health Services, Research and Data Analysis, Olympia, Washington, USA)

This paper uses an unbalanced panel dataset to evaluate how repeated job search services (JSS) and other personal characteristics affect the quarterly earnings of the prime-age female welfare recipients in the State of Washington. We propose a joint dependent framework for the probability of employment and potential earnings or hours or hourly wage rates to facilitate the investigation of the issues of joint determination of employment and potential earnings and to allow for factors to have different impacts on employment status and on quarterly earnings. We have also suggested formulae to compute the dynamic impact of JSS on duration and earnings. Both the maximum likelihood (ML) and semi-parametric estimates are provided. We find that the results are sensitive to the choice of models and estimation methods. For a randomly assigned individual, the first, second and three or more JSS raised the short-run and long-run earnings by (5%, 0%, 0%) and (1%, 0%, 0%), respectively, based on the MLE, and by (56.6%, 36.2%, 36.9%) and (50.7%, 36.2%, 36.9%), respectively, based on the semi-parametric Tobit model. We have also conducted specification analysis. The results appear to favor semi-parametric Type II Tobit model estimates. Copyright © 2007 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 22 (2007)
Issue (Month): 2 ()
Pages: 453-475

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Handle: RePEc:jae:japmet:v:22:y:2007:i:2:p:453-475
DOI: 10.1002/jae.949
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  1. Jacobson, Louis & LaLonde, Robert & G. Sullivan, Daniel, 2005. "Estimating the returns to community college schooling for displaced workers," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 271-304.
  2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
  3. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  4. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
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