scholarly journals Bounding the Labor Supply Responses to a Randomized Welfare Experiment: A Revealed Preference Approach

2015 ◽  
Author(s):  
Patrick Kline ◽  
Melissa Tartari
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)


2013 ◽  
Vol 44 (2) ◽  
pp. 169-193 ◽  
Author(s):  
Paul B. Ellickson ◽  
Stephanie Houghton ◽  
Christopher Timmins

2019 ◽  
Vol 130 (627) ◽  
pp. 587-622
Author(s):  
Laurens Cherchye ◽  
Sam Cosaert ◽  
Thomas Demuynck ◽  
Bram De Rock

Abstract We propose a novel approach to model joint consumption decisions of individuals who care for each other. The model encompasses a continuum of group consumption models situated between the fully co-operative model and the non-cooperative model without caring. We also define a measure for the degree of intragroup cooperation that quantifies how close the observed group behaviour is to fully co-operative behaviour. Following a revealed preference approach, we derive testable implications of the model for empirical data. We use our model to analyse decisions made by children in an experimental setting.


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