Time-inconsistency and Welfare Program Participation: Evidence from the NLSY

Hanming Fang () and Dan Silverman

No 1465, Cowles Foundation Discussion Papers from Cowles Foundation, Yale University

Abstract: We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the NLSY 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify the utility loss stemming from the inability to commit to future decisions, and the potential utility gains from commitment mechanisms such as welfare time limits and work requirements.

Keywords: Time inconsistent preferences; Welfare reform; Labor supply (search for similar items in EconPapers)
JEL-codes: J22 I38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu
Date: 2004-06
View list of references View citations in EconPapers

Downloads: (external link)
http://cowles.econ.yale.edu/P/cd/d14b/d1465.pdf (application/pdf)

Related works:
Working Paper: Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cwl:cwldpp:1465

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation, Yale University
Address: Yale University, Box 208281, New Haven, CT 06520-8281 USA
Contact information at EDIRC.
Series data maintained by Glena Ames ().