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Regional Welfare Programs And Labor Force Participation

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  • Huffman, Sonya Kostova
  • Kilkenny, Maureen

Abstract

Welfare recipiency declined and labor force participation increased differentially across the United States over the past decade. This paper investigates whether this is due to the differences in opportunities, behavior, or state welfare program parameters. A model of labor force and program participation choice is developed and estimated. The welfare and labor force participation of midwestern families categorically eligible for Temporary Assistance for Needy Families (TANF) income support is compared to participation choices by families in the rest of the United States. We find that midwestern labor force participation does differ from that of other regions nationwide, and we show how participation in TANF depends on state-level differences in welfare programs.

Suggested Citation

  • Huffman, Sonya Kostova & Kilkenny, Maureen, 2002. "Regional Welfare Programs And Labor Force Participation," Hebrew University of Jerusalem Archive 18352, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18352
    DOI: 10.22004/ag.econ.18352
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    References listed on IDEAS

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    1. W. Michael Cox & Jason L. Saving, 2000. "Some pleasant economic side effects," Southwest Economy, Federal Reserve Bank of Dallas, issue Jul, pages 7-9.
    2. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
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