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The Effects of Local Labour Market Conditions on Welfare Program Participation

Suwen Pan, Helen H. Jensen () and Wayne A Fuller

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: 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.

Keywords: welfare; labour; imputation methods; missing data (search for similar items in EconPapers)
JEL-codes: J2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo
Date: Written

Published in Applied Economics, 2006, Vol. 38, pp. 649-659.

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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:12447

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