Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172412 
Year of Publication: 
2002
Series/Report no.: 
Upjohn Institute Working Paper No. 02-78
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
By increasing the labor supply of welfare recipients, welfare reform may reduce wages and increase unemployment among other less-educated groups. These "spillover effects" are difficult to estimate because welfare caseloads decrease in response to improvements in the economy, which leads caseload reductions to be associated with improvements in labor market outcomes. This paper corrects for the endogeneity of caseloads by using instruments that reflect policy. The estimates suggest that welfare reform has significant spillover effects: welfare reform reduces employment of male high school dropouts, and reduces wages of single mothers and male high school dropouts.
Subjects: 
welfare
reform
spillover
effects
wages
employment
Bartik
JEL: 
J68
J38
I38
J31
H53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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