Welfare and Labor Force Participation of Low-Wealth Families: Implications for Labor Supply
Sonya Kostova Huffman
March 2001 [01-WP 270]
Huffman, S.K. 2001. "Welfare and Labor Force Participation of Low-Wealth Families: Implications for Labor Supply." Working paper 01-WP 270. Center for Agricultural and Rural Development, Iowa State University.
The author examines the welfare and labor force participation of families potentially eligible for the new Temporary Assistance for Needy Families (TANF) program. Higher wage rates, lower unemployment rates, and lower TANF benefits decrease the probability of welfare participation. For these families, labor supply is moderately responsive to the wage rate.