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An Empirical Analysis Of Joint Decisions On Labor Supply And Welfare Participation

Author

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  • Kang, Gi
  • Huffman, Sonya Kostova
  • Jensen, Helen H.

Abstract

Economic and welfare program factors affect the well-being of low-income families and their labor supply decisions. This study uses data from the U.S. Survey of Income and Program Participation. A nested logit model is estimated to explain the joint decisions to participate in Temporary Assistance for Needy Families (TANF) and the labor market for the population of families potentially eligible for TANF. The empirical findings indicate that higher wages increase labor and decrease welfare program participation; an increase in nonlabor income decreases both labor market and welfare participation.

Suggested Citation

  • Kang, Gi & Huffman, Sonya Kostova & Jensen, Helen H., 2004. "An Empirical Analysis Of Joint Decisions On Labor Supply And Welfare Participation," Hebrew University of Jerusalem Archive 18360, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18360
    DOI: 10.22004/ag.econ.18360
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