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The relation between public assistance and self-employment in census tracts: a long-term perspective

Pankaj C. Patel (), Cornelius A. Rietveld () and Jack I. Richter ()
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Pankaj C. Patel: Villanova School of Business, Villanova University
Cornelius A. Rietveld: Erasmus University Rotterdam
Jack I. Richter: Florida State University

Journal of Evolutionary Economics, 2022, vol. 32, issue 3, No 5, 927 pages

Abstract: Abstract We present evidence on the long-term relationship between the breadth (the proportion of households) and depth (the amount per household) of public assistance and the prevalence of self-employment in US neighbourhoods. The analysis of decennial data of 71,437 census tracts over four decades (1970 to 2000) shows that the poverty ratio lowers self-employment, and that breadth (but not depth) of public assistance mitigates the negative relationship between the poverty ratio and self-employment. The results are robust to alternate model specifications and are informative about the distributional effects of welfare spendings.

Keywords: Census tracts; Poverty; Public assistance; Self-employment; Welfare programs; H5; L26; R13 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s00191-021-00746-3

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