Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33600 
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers No. 1626
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Much of the research that has followed welfare reform and new policies such as the Temporary Assistance for Needy Families (TANF) has focused on identifying the variations in how different states have put the new policy into practice. Less is known however, about how this new policy affects the ability of recipients to earn a living through work. We use panel data from the state of Illinois and examine what explains labor force participation and performance among current and recent TANF recipients. We use both cross-sectional and longitudinal methods to analyze our data. Our results indicate that human capital factors such as education, job skills, and health are important determinants of labor market participation and performance. In addition, we find that long term welfare recipients are equally likely to participate and perform well in the labor market as shorter term welfare recipients. Finally, government housing subsidy appeared to have a positive effect on labor force participation and performance.
Subjects: 
welfare
employment
earnings
JEL: 
I38
J20
J24
J30
Document Type: 
Working Paper

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