IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Regional Welfare Programs and Labor Force Participation

  • Sonya Kostova Huffman
  • Maureen Kilkenny

Welfare program dependency and expenditures rise during recessions, while income tax revenues from working people fall. Thus, now that states are responsible for their own welfare programs, they need to know how responsive their citizens are to workplace and safety net opportunities. This paper investigates household welfare program and labor force participation behavior. A choice-theoretic model is developed and estimated for each of the four census regions (Northeast, Midwest, South, and West) using cross-sectional data on households, labor markets, and policies. We show that household responses to welfare program parameters do differ regionally. But we find that labor supply does not depend on welfare program participation or program payoffs. Furthermore, unlike under the previous welfare program, participation in Temporary Assistance for Needy Families (TANF) does not significantly reduce household labor supply. The finding of significant differences across regions justifies the efficiency rationale for the devolution of authority to the states. We also discuss how states may be able to contain expenditures on welfare programs.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/02wp296.pdf
File Function: Full Text
Download Restriction: no

File URL: http://www.card.iastate.edu/publications/synopsis.aspx?id=477
File Function: Online Synopsis
Download Restriction: no

Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 02-wp296.

as
in new window

Length:
Date of creation: May 2003
Date of revision:
Handle: RePEc:ias:cpaper:02-wp296
Contact details of provider: Postal: 578 Heady Hall, Ames, Iowa 50011-1070
Phone: (515) 294-1183
Fax: (515) 294-6336
Web page: http://www.card.iastate.edu/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:02-wp296. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.