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Time-inconsistency and welfare program participation: Evidence from the NLSY (2009)
| Content Provider | CiteSeerX |
|---|---|
| Author | Fang, Hanming Silverman, Dan |
| Abstract | We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the National Longitudinal Surveys (NLSY) 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements. |
| File Format | |
| Volume Number | 50 |
| Journal | INTERNATIONAL ECONOMIC REVIEW |
| Language | English |
| Publisher Date | 2009-01-01 |
| Access Restriction | Open |
| Subject Keyword | Welfare Program Participation Counterfactual Experiment Utility Loss Single Woman Future Decision Panel Data Time-inconsistent Preference Potential Gain Welfare Time Limit National Longitudinal Survey Work Requirement Labor Supply Welfare Take-up Decision Commitment Mechanism Dynamic Structural Model |
| Content Type | Text |
| Resource Type | Article |