The Effects of Local Labour Market Conditions on Welfare Program Participation
A fractional imputation method is applied to Iowa administrative data to deal with a problem of missing data. The effects of local labour market conditions and mobility of household heads on Family Investment Program (FIP) participation are evaluated. Results show that mobility increases the opportunity for employment and decreases the FIP participation rate for low-income families. An increase in predicted unemployment rates decreases labour force participation and increases programme participation; an increase in unpredicted unemployment rates increases labour force participation and decreases programme participation. Overall, the effects are relatively larger in rural areas than in nonrural areas in Iowa.
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|Date of creation:||01 Jan 2006|
|Date of revision:|
|Publication status:||Published in Applied Economics 2006, vol. 38, pp. 649-659|
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