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Empirical Analysis of Joint Decisions on Labor Supply and Welfare Participation, An

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

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

  • Gi Choon Kang & Sonya Kostova Huffman & Helen H. Jensen, 2004. "Empirical Analysis of Joint Decisions on Labor Supply and Welfare Participation, An," Center for Agricultural and Rural Development (CARD) Publications 04-wp361, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:04-wp361
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    3. Paul A. Hagstrom, 1996. "The Food Stamp Participation and Labor Supply of Married Couples: An Empirical Analysis of Joint Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 383-403.
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    Cited by:

    1. Cyrine Hannafi & Rémi Le Gall & François Legendre, 2022. "Recours et non-recours à la prime d’activité : une évaluation en termes de bien-être," Revue économique, Presses de Sciences-Po, vol. 73(5), pages 841-873.
    2. Peter Haan, 2006. "Much ado about nothing: conditional logit vs. random coefficient models for estimating labour supply elasticities," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 251-256.
    3. Hui Li & Mukti Upadhyay, 2008. "Has the 1996 Welfare Reform Reduced the U.S. Poverty Rate? An Empirical Analysis Using Panel Data," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-4.

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