Car ownership and welfare-to-work

Paul M. Ong

Journal of Policy Analysis and Management, 2002, vol. 21, issue 2, 239-252

Abstract: This study examines the role of car ownership in facilitating employment among recipients under the current welfare-to-work law. Because of a potential problem with simultaneity, the analysis uses predicted car ownership constructed from two instrumental variables, insurance premiums and population density for car ownership. The data come from a 1999-2000 survey of TANF recipients in the Los Angeles metropolitan area. The empirical results show a significant independent contribution of car ownership on employment. The presence of an predicted ownership is associated with a 9 percentage point increase in the odds of being employed. Moreover, the results indicate that lowering insurance premiums by $100 can increase the odds of employment by 4 percentage points. © 2002 by the Association for Public Policy Analysis and Management.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jpamgt:v:21:y:2002:i:2:p:239-252

DOI: 10.1002/pam.10025

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