This paper examines the welfare and labor force participation of families potentially eligible for the new Temporary Assistance for Needy Families (TANF) program. Higher wage rates, lower unemployment rates, and lower TANF benefits decrease the probability of welfare participation. For these families, labor supply is moderately responsive to the wage rate.
Huffman, Sonya Kostova, "Welfare and Labor Force Participation of Low-Wealth Families: Implications for Labor Supply" (2001). CARD Working Papers. 316.