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The effect of work and training programs on entry and exit from the welfare caseload

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  • R. A. Moffitt

Abstract

To policymakers, the major attraction of work and training programs for welfare recipients is that they hold out the prospect that recipients can be moved off the rolls and into self-sufficiency in the private labor market, thereby decreasing welfare costs and caseloads. This paper considers the possibility that such programs may also affect the attractiveness of welfare in the first place, either by making welfare less desirable because the work- training program is viewed as a burden, or by making it more desirable because the program is viewed favorably by potential applicants. Such responses are termed "entry-rate effects." Some empirical estimates of these effects are presented which suggest that entry-rate responses, whether positive or negative, may affect the caseload more than the direct effect of the programs in moving recipients off the rolls.

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  • R. A. Moffitt, "undated". "The effect of work and training programs on entry and exit from the welfare caseload," Institute for Research on Poverty Discussion Papers 1025-93, University of Wisconsin Institute for Research on Poverty.
    • Handle: RePEc:wop:wispod:1025-93
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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. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
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    Cited by:

    1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    2. Yelowitz, Aaron S., 1998. "Why did the SSI-disabled program grow so much? Disentangling the effect of Medicaid," Journal of Health Economics, Elsevier, vol. 17(3), pages 321-349, June.

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