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The causal effects of education on welfare participation in the US

Fabrice Kämpfen

Education Economics, 2021, vol. 29, issue 6, 580-596

Abstract: This study provides new evidence on the long-term impact of education on welfare participation in the US. I exploit historical changes in child labor laws as an instrumental variable for education to estimate the causal effects of education on the probability of receiving social welfare benefits. I find large and statistically significant negative effects of education on welfare participation among persons who obtained additional education due to increased schooling requirements induced by child labor laws. The findings are robust across different sample selection and model specifications.

Date: 2021
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DOI: 10.1080/09645292.2021.1923661

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Handle: RePEc:taf:edecon:v:29:y:2021:i:6:p:580-596