Labor Economics Commons^™

Strengthening Work Requirements? Forecasting Impacts Of Reforming Cash Assistance, Josep M. Nadal-Fernandez, Gabrielle Pepin, Kane Schrader

Upjohn Institute Working Papers

Work requirements are perhaps the most controversial aspect of the Temporary Assistance for Needy Families (TANF) program, America’s sole federal cash assistance program for low-income families with children. In 2025, for the first time in nearly 20 years, the Fiscal Responsibility Act of 2023 (FRA) will implement policy changes intended to strengthen states’ work requirements. However, researcher’ and policymakers’ understanding of how FRA will impact states’ compliance with federal requirements is hampered by a lack of research and publicly available data.

We tie information from reports submitted to the U.S. Department of Health and Human Services that are collected to …

Effects Of Child Care Vouchers On Price, Quantity, And Provider Turnover In Private Care Markets, Won Fy Lee, Aaron Sojourner, Elizabeth E. Davis, Jonathan Borowsky

Upjohn Institute Working Papers

Harnessing changes in funding for a voucher program that subsidizes consumers’ use of child care services at private providers, this study quantifies effects on local markets’ service capacity and prices. We also estimate how increased funding effects provider entry rate, exit rate, and highly rated provider market share. The evidence shows that an additional $100 in private voucher funding per local young child would 1) raise the number of private-provider slots by 0.026 per local young child, 2) raise average prices by $0.56 per week, mainly driven by a price increase among incumbent providers, and 3) induce new provider entry …

Effects Of Subsidies On The Child Care Market: Large Increases In Capacity, Small Increases In Price, Won Fy Lee, Aaron Sojourner, Elizabeth E. Davis, Jonathan Borowsky

Upjohn Institute Policy and Research Briefs

No abstract provided.

Employment, Income, And Poverty In Kalamazoo City Core Neighborhoods, Val Klomparens

Reports

This report employs a traditional methodology using American Community Survey data to examine employment, income, and poverty in three neighborhoods in Kalamazoo, Michigan: Eastside, Northside, and Edison. These neighborhoods are studied with an emphasis on eligibility status for the Distressed Area Recompete Pilot Program, administered through the U.S. Economic Development Administration. Eastside residents are unique in that a larger share earn income through wages or employment than do Michigan residents, yet their median income falls below those at the county and state levels in a statistically significant way. The Edison neighborhood is characterized by greater income inequality than the other …

Place-Based Consequences Of Person-Based Transfers, Brad J. Hershbein, Bryan A. Stuart

Upjohn Institute Policy and Research Briefs

No abstract provided.

Place-Based Consequences Of Person-Based Transfers: Evidence From Recessions, Brad J. Hershbein, Bryan A. Stuart

Upjohn Institute Working Papers

This paper studies how government transfers respond to changes in local economic activity that emerge during recessions. Local labor markets that experience greater employment losses during recessions face persistent relative decreases in earnings per capita. However, these areas also experience persistent increases in transfers per capita, which offset 16 percent of the earnings loss on average. The increase in transfers is driven by unemployment insurance in the short run, and medical, retirement, and disability transfers in the long run. Our results show that nominally place-neutral transfer programs redistribute considerable sums of money to places with depressed economic conditions.

Place-Based Consequences Of Person-Based Transfers, Brad J. Hershbein

Employment Research Newsletter

No abstract provided.

Nudges To Increase Completion Of Welfare Applications: Experimental Evidence From Michigan, Christopher J. O'Leary, Dallas Oberlee, Gabrielle Pepin

Upjohn Institute Working Papers

The Temporary Assistance for Needy Families (TANF) program provides cash assistance to very-low-income families with children. Application procedures to receive TANF benefits, however, often involve substantial transaction costs likely to reduce take-up. We estimate, through a randomized controlled trial design, the effects of a detailed telephone-call reminder to increase TANF application completion in southwest Michigan, where applicants must visit a regional public employment office at least four times to be eligible for benefits. We do not find that personalizing reminder calls increased participation in the initial appointment at the public employment office. However, conditional on attending the initial session, applicants …

Nudges To Increase Completion Of Welfare Applications, Christopher J. O'Leary, Dallas Oberlee, Gabrielle Pepin

Upjohn Institute Policy and Research Briefs

No abstract provided.

The Effects Of Welfare Time Limits On Access To Financial Resources: Evidence From The 2010s, Gabrielle Pepin

Upjohn Institute Working Papers

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 established the Temporary Assistance for Needy Families (TANF) program within the United States. TANF mandated 60-month lifetime time limits for federal cash assistance dollars. Because states reserve the right to set their own stricter or more generous time limits, the 60-month lifetime limit did not bind in all cases. In recent years, however, several states imposed TANF time limits for the first time or made existing time limits more stringent. Using administrative and survey data, I find that stricter time limits decrease annual TANF participation by 22 percent and annual …

Effects Of Welfare Time Limits, Gabrielle Pepin

Upjohn Institute Policy and Research Briefs

No abstract provided.

Strengths Of The Social Safety Net In The Great Recession: Supplemental Nutrition Assistance And Unemployment Insurance, Christopher J. O'Leary Editor, David W. Stevens Editor, Stephen A. Wandner, Michael Wiseman Editor

Upjohn Press

The contributors in this book use administrative data from six states from before, during, and after the Great Recession to gauge the degree to which Supplemental Nutrition Assistance (SNAP) and Unemployment Insurance (UI) interacted. They also recommend ways that the program policies could be altered to better serve those suffering hardship as a result of future economic downturns.

Longer-Run Effects Of Antipoverty Policies On Disadvantaged Neighborhoods, David Neumark, Brian J. Asquith, Brittany Bass

Upjohn Institute Working Papers

We estimate the longer-run effects of minimum wages, the Earned Income Tax Credit, and welfare on key economic indicators of economic self-sufficiency in disadvantaged neighborhoods. We find that the longer-run effects of the EITC are to increase employment and to reduce poverty and public assistance. We also find some evidence that higher welfare benefits had longer-run adverse effects, and quite robust evidence that tighter welfare time limits reduce poverty and public assistance in the longer run. The evidence on the long-run effects of the minimum wage on poverty and public assistance is not robust, with some evidence pointing to reductions …

Can Antipoverty Policies Change Neighborhood Outcomes In The Long Run?, Brian J. Asquith

Upjohn Institute Policy and Research Briefs

No abstract provided.

Increasing Beneficiary Retention In Food Assistance Programs, Colin Gray, Christopher J. O'Leary

Upjohn Institute Policy and Research Briefs

No abstract provided.

Do Snap Work Requirements Work?, Timothy F. Harris

Upjohn Institute Working Papers

The American Recovery and Reinvestment Act waived Supplemental Nutrition Assistance Program (SNAP) work requirements nationally in 2010 and broadened the eligibility for receiving waivers in subsequent years for Able-Bodied Adults without Dependents (ABAWD). From 2011 to 2016, many states voluntarily imposed work requirements, while other areas became ineligible for waivers because of improved economic conditions. Did the work requirements increase employment as intended, or did the policy merely remove food assistance for ABAWD who—despite an improving economy—still could not find employment? Using data from the American Community Survey from 2010 to 2016, I analyze the influence of work requirements on …

An Apple A Day? Adult Food Stamp Eligibility And Health Care Utilization Among Immigrants, Chloe N. East, Andrew I. Friedson

Upjohn Institute Working Papers

In this study, we document the effect of food stamp access on adult health care utilization. While the Food Stamp Program provides one of the largest safety nets in the United States today, the universal nature of the program across geographic areas and over time limits the potential for quasi-experimental analysis. To circumvent this, we use variation in documented immigrants’ eligibility for food stamps across states and over time due to welfare reform in 1996. Our estimates indicate that access to food stamps reduced physician visits. Additionally, we find that for single women, food stamps increased the affordability of specialty …

Food Stamps And The Working Poor, Peter R. Mueser, David C. Ribar, Erdal Tekin

Upjohn Press

The authors show that many households that are eligible for food stamps do not receive them, and that eligible individuals' enrollment is influenced by the states' administrative requirements. Highlighted are the procedures for certifying applicants and recertifying recipients, and policies for treatment of able-bodied adults without dependents.

The 2008 Economic Stimulus Payments Increased Emotional Well-Being, Marta Lachowska

Employment Research Newsletter

No abstract provided.

Are There Returns To Experience At Low-Skill Jobs? Evidence From Single Mothers In The United States Over The 1990s, Adam Looney, Dayanand S. Manoli

Upjohn Institute Working Papers

Policy changes in the United States in the 1990s resulted in sizable increases in employment rates of single mothers. We show that this increase led to a large and abrupt increase in work experience for single mothers with young children. We then examine the economic return to this increase in experience for affected single mothers. Despite the increases in experience, single mothers’ real wages and employment have remained relatively unchanged. The empirical analysis suggests that an additional year of experience increases single mothers’ wage rates by less than 2 percent, a percentage lower than previous estimates in the literature.

Using Linked Survey And Administrative Data To Better Measure Income: Implications For Poverty, Program Effectiveness And Holes In The Safety Net, Bruce D. Meyer, Nikolas Mittag

Upjohn Institute Working Papers

We examine the consequences of underreporting of transfer programs in household survey data for several prototypical analyses of low-income populations. We focus on the Current Population Survey (CPS), the source of official poverty and inequality statistics, but provide evidence that our qualitative conclusions are likely to apply to other surveys. We link administrative data for food stamps, TANF, General Assistance, and subsidized housing from New York State to the CPS at the individual level. Program receipt in the CPS is missed for over one-third of housing assistance recipients, 40 percent of food stamp recipients, and 60 percent of TANF and …

Should Ui Eligibility Be Expanded To Low-Earning Workers? Evidence On Employment, Transfer Receipt, And Income From Administrative Data, Pauline Leung, Christopher J. O'Leary

Upjohn Institute Working Papers

Recent efforts to expand unemployment insurance (UI) eligibility are expected to increase low-earning workers’ access to UI. Although the expansion’s aim is to smooth the income and consumption of previously ineligible workers, it is possible that UI benefits simply displace other sources of income. Standard economic models predict that UI delays reemployment, thereby reducing wage income. Additionally, low-earning workers are often eligible for benefits from means-tested programs, which may decrease with UI benefits. In this paper, we estimate the impact of UI eligibility on employment, means-tested program participation, and income after job loss using a unique individual-level administrative data set …

Use Of Unemployment Insurance And Public Employment Services After Leaving Welfare, Christopher J. O'Leary

Upjohn Institute Working Papers

In this paper I examine the rates at which adults in households recently receiving Temporary Assistance to Needy Families (TANF) become jobless, apply for and receive unemployment insurance (UI) benefits, and participate in publicly funded employment services. I also investigate the correlation of UI and employment services receipt with maintenance of self-sufficiency through return to work and independence from TANF. The analysis is based on person-level administrative program records from four of the nine largest states between 1997 and 2003. Evidence suggests that three-quarters of new TANF leavers experience joblessness within three years, and one-quarter of the newly jobless apply …

The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra

Upjohn Institute Working Papers

Using unique longitudinal administrative tax panel data for the District of Columbia (DC), we assess the combined effect of the DC supplemental earned income tax credit (EITC) and the federal EITC on poverty and income dynamics within Washington, DC, from 2001 to 2011. The EITC in DC merits investigation, as the DC supplement to the federal credit is the largest in the nation. The supplemental DC EITC was enacted in 2000, and has been expanded from 10 percent of the federal credit in 2001 to 40 percent as of 2009. To implement the study, we estimate least squares models with …

Economic Development Recommendations That Focus On The "Working Poor": Lessons From Waco, George Erickcek, Don Edgerly, Brian Pittelko, Claudette Robey, Bridget Timmeney, Jim Robey

Employment Research Newsletter

No abstract provided.

Use Of Supplemental Nutritional Assistance Program Benefits By Unemployment Insurance Applicants In Michigan During The Great Recession, Christopher J. O'Leary, Kenneth J. Kline

Upjohn Institute Working Papers

During the Great Recession, both the Supplementary Nutrition Assistance Program (SNAP) and the federal-state unemployment insurance (UI) program experienced dramatic increases in participation. Using Michigan program administrative data on all SNAP (2006–2011) recipients and all UI (2001–2010) applicants, we examine SNAP use before and after UI application. Both past and future receipts of SNAP are highly negatively correlated with meeting UI income and job separation eligibility requirements. Unemployment insurance applicants with insufficient wage credits or job separations because of quitting or employer discharge are much more likely to have received SNAP in the past. Furthermore, such UI applicants are also …

Mass Incarceration And Employment, Steven Raphael

Employment Research Newsletter

No abstract provided.

The New Scarlet Letter? Negotiating The U.S. Labor Market With A Criminal Record, Steven Raphael

Upjohn Press

This book explores the difficulties facing ex-offenders as they try to enter and remain in the U.S. labor market.

Do Minimum Wage Laws Affect People Who Are Not Covered? Evidence From Documented And Undocumented, Hourly And Piece Rate Workers In U.S. Agriculture, Anita Alves Pena

Upjohn Institute Working Papers

While a stated goal of minimum wage increases is to benefit low-income workers, some employers are not obligated to provide at least minimum wages to all employees. U.S. farm employers comprise one of these groups. Employees of large farms and H2-A workers (temporary nonimmigrant workers lawfully admitted to perform temporary or seasonal agricultural services) are protected by minimum wage legislation, while other migrant workers (especially those who are paid piece rate) are exempt. Furthermore, U.S. agriculture is characterized by a large percentage of illegal migrants, and workers who are illegal may or may not receive wages above minimum levels. This …

An Assessment Of The Bc Careers Employer Resource Network: Its Contributions To The Ern Model, Kevin Hollenbeck, George A. Erickcek, Bridget Timmeney

Reports

No abstract provided.