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Understanding the Effects of Workfare Policies on Child Human Capital

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  • Jorge Rodríguez

Abstract

Workfare can impact child development by inducing parents to spend less time at home. I study the mechanisms by which workfare policies affect children using the New Hope workfare experiment. The program randomly assigned individuals to a policy bundle including income and childcare subsidies conditional on full-time work. For families with young children, the program had positive effects on child academic performance and classroom behavior. Counterfactual experiments from a dynamic discrete choice model indicate that most of the effect of New Hope on young children is explained by parents enrolling their children in center-based childcare.

Suggested Citation

  • Jorge Rodríguez, 2023. "Understanding the Effects of Workfare Policies on Child Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 39-75.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/718564
    DOI: 10.1086/718564
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