Efficient Training Programs for Workers on Welfare

Ofer Setty, Gianluca Violante and Nicola Pavoni
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Gianluca Violante: NYU

No 685, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: This paper extends the recent recursive contract literature on optimal unemployment insurance and optimal welfare-to-work programs in order to study the constrained-efficient dynamic contract between government and unemployed worker when a costly "training technology" is available. We first analyze qualitatively the features of the contract. Next, we derive some quantitative implications by calibrating our model through a novel data source, the National Evaluation of Welfare-to-Work Strategies (NEWWS), a detailed panel dataset following over 3,000 women enrolled in a variety of training programs in several U.S. locations during the 1990s.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed009:685

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