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Author: Huynh, Minh Tuong
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Huynh, Minh Tuong |
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Labor Supply Decision of Transfer Recipients Ph.D. Dissertation, Boston College, 1999 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Aid for Families with Dependent Children (AFDC); Human Capital; Labor Economics; Transfers, Public; Welfare; Work Experience This dissertation examines the labor supply behavior of Aid to Families with Dependent Children (AFDC) participants. It shows that AFDC participants work, and among those who work, a majority work consistently. It also examines National Longitudinal Survey of Youth data to elaborate on this patterns of employment, first to understand whether or not this employment is income-supplementing--i.e., consumption--or whether it is an investment in long-term prospects. Next, this data is used to investigate whether working while on welfare is an investment in future earnings (which suggests a human capital model in which experience acts as a substitute for education), or whether it is an investment in better job prospects (which suggests a job-market signaling model in which experience acts as a signal to employers of potential productivity). Under the assumption that work experience can be used as an investment in future job prospects, a variation of the Spence job-market signaling model is developed to investigate this possibility. In addition to presenting and testing a Spence model, a different view of signaling in the job market is proposed. In traditional models that use education as a signal, the presence of signaling alters the private and social returns to initial investment, and the signal serves as a mechanism to allocate jobs under incomplete information. In the case of AFDC recipients, work experience is proposed to have the additional role of being an alternative to education as a signal. The final chapter provides an overview of various federal and state efforts to date to require welfare participants to work. The success or failure of these efforts are then examined in light of the earlier findings. |
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Bibliography Citation
Huynh, Minh Tuong. Labor Supply Decision of Transfer Recipients. Ph.D. Dissertation, Boston College, 1999. |