Midwest Welfare Program and Labor Force Participation

Sonya Kostova Huffman
March 2001  [01-WP 272]

The author examines family welfare and labor force participation of families potentially eligible for the new Temporary Assistance for Needy Families (TANF) program in the Midwest region. High wage rates and low unemployment rates decrease the probability of welfare participation. For these low-wealth families, labor supply is shown to be highly responsive to the wage rate.

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