An empirical analysis of joint decisions on labour supply and welfare participation
Economics, Center for Agricultural and Rural Development
Journal or Book Title
Applied Economics Letters
First Page or Article ID Number
Economic and welfare programme factors affect the wellbeing of low-income families and their labour supply decisions. This study uses recent data from the US Survey of Income and Programme Participation. A nested logit model is estimated to explain the joint decisions to participate in Temporary Assistance for Needy Families (TANF) and the labour market for the population of families potentially eligible for TANF. The empirical findings indicate that higher wages increase labour and decrease welfare programme participation; an increase in non-labour income decreases both labour market and welfare participation.
Kang, Gi Choon; Huffman, Sonya K.; and Jensen, Helen H., "An empirical analysis of joint decisions on labour supply and welfare participation" (2004). Economics Publications. 204.