Evaluating a Structural Model of Labor Supply and Welfare Participation: Evidence from State Welfare Reform Experiments

Author(s):  
Eleanor Choi
2016 ◽  
Vol 106 (4) ◽  
pp. 972-1014 ◽  
Author(s):  
Patrick Kline ◽  
Melissa Tartari

We study the short-term impact of Connecticut's Jobs First welfare reform experiment on women's labor supply and welfare participation decisions. A nonparametric optimizing model is shown to restrict the set of counterfactual choices compatible with each woman's actual choice. These revealed preference restrictions yield informative bounds on the frequency of several intensive and extensive margin responses to the experiment. We find that welfare reform induced many women to work but led some others to reduce their earnings in order to receive assistance. The bounds on this latter “ opt-in” effect imply that intensive margin labor supply responses are nontrivial. (JEL H23, H75, I38, J16, J22)


2021 ◽  
Vol 111 (8) ◽  
pp. 2417-2443
Author(s):  
Neil Thakral ◽  
Linh T. Tô

This paper provides field evidence on how reference points adjust, a degree of freedom in reference-dependence models. Examining this in the context of cabdrivers’ daily labor-supply behavior, we ask how the within-day timing of earnings affects decisions. Drivers work less in response to higher accumulated income, with a strong effect for recent earnings that gradually diminishes for earlier earnings. We estimate a structural model in which drivers work toward a reference point that adjusts to deviations from expected earnings with a lag. This dynamic view of reference dependence reconciles conflicting “neoclassical” and “behavioral” interpretations of evidence on daily labor-supply decisions. (JEL J22, J31, L94)


1980 ◽  
pp. 101-123
Author(s):  
DAVID BETSON ◽  
DAVID GREENBERG ◽  
RICHARD KASTEN
Keyword(s):  

1992 ◽  
Vol 27 (1) ◽  
pp. 166 ◽  
Author(s):  
Charles Michalopoulos ◽  
Philip K. Robins ◽  
Irwin Garfinkel

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