Regional welfare program and labour force participation

Sonya K. Huffman and Maureen Kilkenny

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

Abstract: This paper investigates regional variations in household welfare program and labour force participation behaviour in the United States. A choice-theoretic model is developed and estimated for each of the major census regions (Northeast, Midwest, South and West) using cross-section data on households, labour markets, and state policies. We show how the observable heterogeneity across U.S. census regions explains different welfare program participation and workforce outcomes. We find little evidence of differences in behaviour with respect to welfare program policies across regions. This finding undermines some of the efficiency rationale for the devolution of authority over welfare programs to the states. We also find evidence that welfare program participation still reduces labour supply in some regions. That finding supports the incentive rationale for the imposition of work requirements.

Date: 2007-06-01
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Related works:
Journal Article: Regional welfare program and labour force participation* (2007)
Working Paper: Regional Welfare Program and Labor Force Participation (2007)
Working Paper: Regional Welfare Programs and Labor Force Participation (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:200706010700001351

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