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Title: Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY
Resulting in 1 citation.
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Fang, Hanming Silverman, Daniel Susman |
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Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY Cowles Foundation Discussion Paper No. 1465, Cowles Foundation for Research in Economics, Yale University, July 2005. Cohort(s): NLSY79 Publisher: Cowles Foundation for Research and Economics, Yale University Keyword(s): Aid for Families with Dependent Children (AFDC); Labor Supply; Maternal Employment; Time Inconsistency; Time Preference; Welfare Permission to reprint the abstract has not been received from the publisher. 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 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. |
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Bibliography Citation
Fang, Hanming and Daniel Susman Silverman. "Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY." Cowles Foundation Discussion Paper No. 1465, Cowles Foundation for Research in Economics, Yale University, July 2005. |