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An empirical analysis of joint decisions on labour supply and welfare participation

Author

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  • Kang, Gi Choon
  • Huffman, Sonya K.
  • Jensen, Helen H.

Abstract

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

Suggested Citation

  • Kang, Gi Choon & Huffman, Sonya K. & Jensen, Helen H., 2004. "An empirical analysis of joint decisions on labour supply and welfare participation," ISU General Staff Papers 200401010800001379, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200401010800001379
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    1. is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.

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