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

Hanming Fang () and Dan Silverman

No 13375, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We empirically implement a dynamic structural model of labor supply and welfare program participation for never-married mothers 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.

JEL-codes: I38 J22 (search for similar items in EconPapers)
Date: Written
Note: LS PE
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w13375.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Time-inconsistency and Welfare Program Participation: Evidence from the NLSY (2004)
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:nbr:nberwo:13375

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w13375
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().