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

Axelsen, Dan; Friesner, Daniel; Rosenman, Robert; Snarr, Hal W.

doi:10.1080/00036840500461865

Cited by 11 publications

(6 citation statements)

References 42 publications

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“…Although TANF outcomes were adopted simultaneously, only a handful of studies in the welfare reform literature have accounted for simultaneity (Stevans, 1996;Bartik, 2002;Ribar, 2005;Axelsen et al, 2007;Hill and Murray, 2008), but none, to my knowledge, account for possible simultaneity in all three TANF outcomes. The studies surveyed previously rely on single equation estimation, raising concerns over the validity of published estimates.…”

Section: Existing Researchmentioning

confidence: 98%

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Was it the economy or reform that precipitated the steep decline in the US welfare caseload?

Snarr

2013

Applied Economics

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Objectives of the 1996 overhaul of the US welfare system included reducing dependency, raising employment and de-incentivizing out-of-wedlock fertility. Using public use state-level panel data from 1990 to 2005, I analyse how state implementation of welfare reform simultaneously affects the caseload, employment and out-of-wedlock births (henceforth, Temporary Assistance for Needy Families (TANF) objectives). Because endogeneity and simultaneity could not be rejected, I use Three-Stage Least Squares (3SLS) method. Results indicated that most of the steep decline in the caseload is attributed to welfare reform, while the economy's overall effect paled in comparison. However, lagged and contemporaneous unemployment individually ranked second and third behind the Hispanic share of state population. The conservative tilt over the period studied ranked forth, followed in declining order by full family sanctions, Earned Income Tax Credit (EITC) payments, time limits (lagged by length), access to abortion clinics, lump-sum TANF diversion payments, and TANF benefit payments. Findings also suggest that policy does not always work as intended: caseloads are found to be higher in states that have highly regarded family formation and job retention TANF programs; and EITC payments are associated with lower not higher caseloads. The most compelling finding in this study is that low-income families likely turn first to unemployment insurance and then to TANF assistance.

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Section: Existing Researchmentioning

confidence: 98%

“…Studies accounting for simultaneity estimate models of employment and dependency (e.g Axelsen et al, 2007;Hill and Murray, 2008),. employment and fertility (e.g Xie, 1997),.…”

mentioning

confidence: 99%

Was it the economy or reform that precipitated the steep decline in the US welfare caseload?

Snarr

2013

Applied Economics

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“…The remaining 15% is enrolled in Tricare or some other government insurance program. Publicly insured subjects are deleted from the estimation sample, because Medicaid enrollees who also happen to work represent a unique population that has, itself, been the subject of a separate strand of literature in recent years (Axelsen et al 2007;Meara et al 2008). Incorporating insurance status and health care demand among this population would greatly complicate the estimation and identification strategies discussed below.…”

Section: Datamentioning

confidence: 99%

Health Insurance and Health Care Demand Among the Self-employed

Zimmer

2010

J Labor Res

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“…Axelsen et al (2007) develop a two-step procedure, where an individual chooses whether to enroll in TANF first and then decides how many hours to work conditional on the TANF use decision. 12 Huffman and Jensen (2005) use a threeequation simultaneous-equation system to study labour force participation, welfare use and work decisions.…”

Section: Reviewmentioning

confidence: 99%

The 1993 EITC expansion and low-skilled single mothers’ welfare use decision

Chyi

2012

Applied Economics

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Previous studies on low-skilled single mothers focus generally either on the binary welfare use or work decision. However, work among welfare participants has increased steadily since the mid-1990s. This study estimates the role of the 1993 Earned Income Tax Credit (EITC) expansion on the decline of welfare caseloads using a bivariate probit model. Using monthly Survey of Income and Program Participation (SIPP) information, I find that the 1993 EITC expansion has at least the same effect on reducing welfare use as the welfare reform initiatives. Moreover, the elasticity estimates indicate that single mothers, especially those who were not employed and dependent solely on welfare before the expansion, were the most responsive to the policy initiatives. Finally, the increase in work among welfare participants is due to the relative ineffectiveness of the policies in reducing the net population of those who are on welfare and work simultaneously.

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

Cited by 11 publications

References 42 publications

Was it the economy or reform that precipitated the steep decline in the US welfare caseload?

Was it the economy or reform that precipitated the steep decline in the US welfare caseload?

Health Insurance and Health Care Demand Among the Self-employed

The 1993 EITC expansion and low-skilled single mothers’ welfare use decision

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