Time-inconsistency and welfare program participation
Subtitle: evidence from the NLSY
By: Hanming Fang, Dan Silverman.
Contributors: Silverman, Dan; National Bureau of Economic Research.
Series: NBER working paper series -- no. 13375.; Working paper series (National Bureau of Economic Research) -- working paper no. 13375.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 56
Subjects: Single mothers -- United States; Welfare recipients -- Employment -- United States -- Econometric models; Labor supply -- United States
Description: We empirically implement a dynamic structural model of labor supply and welfare program participation for never-married mothers with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the 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 the utility loss stemming from the inability to commit to future decisions, and the potential utility gains from commitment mechanisms such as welfare time limits and work requirements.
Notes: "September 2007"

Includes bibliographical references (p. 31-35).

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