Welfare Dynamics under Time Limits

Abstract

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Welfare reform, time limits, and infant health

“…Using this monthly caseload (stock) data from the DHHS, Danielson and Klerman (2004) find evidence of an anticipatory drop in welfare participation in short time-limit states. Such a drop is consistent with the forward-looking behavior of welfare participants first highlighted by Grogger (2002) and Grogger and Michalopoulos (2003). The authors conclude that a relatively small share of the decline in caseloads during a period including the 1990's boom can be accounted for by changes in welfare policy.…”

The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit

“…To assign all single mothers a subsidy would introduce measurement error to child care prices that far exceeds the error from leaving prices unadjusted. 15 Building on research by Grogger (2003) and Grogger and Michalopoulos (2003), I capture the effects of time limits through the dummy variable and its interaction with the age of the mother. Allowing the effect of time limits to vary by age accounts for the possibility that mothers save their welfare benefits until an employment shock occurs.…”

Welfare recipient work choice and in-kind benefits in Washington state

“…All three found that families with younger children were more affected by time limits than households with older children. Grogger's (2003) findings suggest that time limits cause a 13% drop in welfare use -much lower than the 16-19% reported in Grogger (2004) and Grogger and Michalopoulos (2003) or the 28% reported by Kaushal and Kaestner. Moreover, variables such as the EITC also influence welfare participation.…”

“…Grogger and Michalopoulos (2003), Kaushal and Kaestner (2001), Keng et al (2002) and Grogger (2003Grogger ( , 2004a estimated the impact of a time limit dummy variable on labour supply decisions. Kaushal and Kaestner (2001) used a difference-in-difference method to estimate the impact of time limits on welfare caseloads and found that time limits increased employment and induced higher work effort.…”

“…As a result, it is difficult to determine whether changes in labour supply decisions are directly attributable to time limits or other reforms . To remedy this, Grogger and Michalopoulos (2003) and Grogger (2003Grogger ( , 2004a estimated the 'age-dependent effects of time limits'. Grogger and Michalopoulos (2003) interacted a categorical variable describing the age of the youngest child in a household with a welfare reform dummy variable, while Grogger (2003Grogger ( , 2004a interacted a time limit dummy with the age of the youngest child.…”