Does the minimum wage drive teenagers out of the labor force?

Labor force participation is directly related to the value of being in the labor force. The effect of the minimum wage on labor force participation thus measures how the minimum wage affects the welfare of labor force participants. In contrast, a decline in employment tells us little about welfare, because of the offsetting wage increase. Only changes in labor force participation can directly measure the welfare effects of the minimum wage. Despite this, most literature about the minimum wage has been focused on employment. My empirical results show that the minimum wage has a significant negative effect on teenage labor force participation. Thus, a minimum wage reduces the value of entering the labor market.     

LABOR MARKETS, INDUSTRIAL MONOPOLIZATION, WELFARE, AND IMPRISONMENT:

Various theorists posit that the rate of unemployment is linked to the rates of both welfare and imprisonment. This assumes a competitive labor market tied to specific controls of surplus populations. This article argues that contemporary labor markets lie on a continuum between competitive (secondary) and relatively non-competitive (primary) structures which creates a pattern of labor market segmentation. Such segmentation is linked with specific policies of incarceration or welfare, depending on the competitiveness of the labor market. Data from a cross-section of urban, industrial U.S. counties test the relationship between labor market segmentation, monopolization of industries, and the rates of welfare and imprisonment, controlling for a variety of other relevant variables. Regression analyses results suggest that as labor market structures become less competitive (i.e., move from predominantly secondary toward predominantly primary labor market characteristics), rates of welfare recipients and welfare benefits rise and rates of imprisonment fall. They also suggest that increasing industrial monopolization raises rates of imprisonment and lowers rates of welfare benefits. These findings indicate that the two major dimensions of economic segmentation (industrial competition and labor market competition) oppositely affect levels of welfare benefits and rates of imprisonment.     

Welfare-to-Work Programs and the Dynamics of TANF Use

This study examines the effects of participation in Welfare-to-Work programs on the dynamics of TANF recipients’ welfare use. Using the Survey of Program Dynamics and the Welfare Rules Database, the study analyzes how participation in Human Capital Development and Labor Force Attachment programs affects the probabilities of TANF exit and re-entry, while holding the effects of the state economy and various TANF rules constant. The analyses reveal that LFA programs are not associated with a higher probability of TANF exit than HCD programs. Instead, TANF recipients’ employment status and the local labor market conditions are more important predictors of TANF exit. It also reveals that, for TANF leavers, severe poverty and economic insecurity are significantly related to their welfare recidivism.     

State TANF Time Limit and Work Sanction Stringencies and Long-Term Trajectories of Welfare Use,Labor Supply,and Income

While the 1996 welfare reform increased employment and reduced the participation of the Temporary Assistance for Needy Families (TANF) program immediately after its inception, little is known about the extent to which the reform and stringencies of time limit and work sanction policy features have impacted individuals in the long term. This study used the Survey of Income and Program Participation 1996, 2001, and 2004 panels (1996–2007) and a difference-in-difference-in-difference design to follow low-skilled single mothers’ trajectories of welfare use, labor supply, and income for 10 years after the welfare reform and compare how these trajectories differ by stringencies of state work sanction and time limit policies. The findings indicate that welfare reform had sustained impacts on reducing welfare use (TANF and the Supplemental Nutrition Assistance Program [SNAP] program) and increasing employment. Stringent work sanction and time limit policies were associated with lower TANF participation rates in the long term, but only short time limit policies were associated with reduced SNAP participation. Neither stringent policy feature increased employment nor income. The differential effects by race were also examined and discussed.

     

Female Labor Force Participation in Urban and Rural China1

Abstract The objective of this study is to examine female labor force participation and its determinants in rural and urban China. The sociological literature has demonstrated that participation tends to increase in urban and industrialized places where women have higher levels of education and fewer children, where more workers are engaged in service pursuits, and where family structure is less traditional. With the use of data on counties and cities (N = 2,377) from the I-percent sample of the 1982 census of the People's Republic of China, it was found that female labor force participation is likely to rise in areas with increased agricultural employment, educational levels, proportion of female-headed households, and higher male-to-female sex ratios. Both the size of the service sector and the fertility rate had negligible effects on female labor force participation. Although, on average, rural places have slightly higher levels of female labor force participation, when other variables are controlled, urban places have a higher rate of female participation. In addition, the findings suggest that market factors (i.e., education) are more likely to determine the rate of female labor force participation in urban areas; whereas demographic and social factors (i.e., sex ratio and household structure) play a more important role in explaining the female labor force participation in rural counties.     

Predictors of late adolescent delinquency: The protective role of after-school activities in low-income families

Research suggests an important link between maternal welfare and employment, lack of after-school care, and a child's propensity to engage in increased levels of delinquency. Indeed, with welfare reform, many disadvantaged families, typically single-mother households, face increased pressures to move off of welfare and into employment or risk losing their benefits, which decreases the mother's ability to provide adequate after-school care and supervision. Using longitudinal data from Welfare, Children, and Families: A Three-City Study, this study assessed how changes in maternal welfare and employment status, as well as participation in after-school activities influence rates of adolescents' delinquency 4 years later. Results show that early and increased participation in after-school activities served as a protective factor against late adolescent delinquency during a mother's transition off of welfare. Youth who increased their after-school activity participation from early to late adolescence had lower rates of delinquency at wave 3. Policy implications are discussed.     

Parity of participation in liberal welfare states: human rights,neoliberalism, disability and employment

Governments continue to face challenges in implementing effective strategies to increase social and economic participation of people with disabilities. In a recent OECD high-level policy forum on Sickness, Disability and Work, the main policy message was the need for a culture of inclusion; with a dual focus on short-term active policy interventions and long-term structural reform. This paper examines policies in liberal welfare states that encourage people receiving disability benefits to participate in the labor market. Examples from the United States, the United Kingdom and Australia of active labor market programs aimed at moving people with disabilities from workfare are analyzed in the context of international disability rights and neoliberal discourse. The paper explores the extent to which new approaches to activation policies are facilitating parity of participation and factors that impact the effectiveness of these policies.     

Commitment to Work Among Welfare‐Reliant Women

The purpose of this article is to describe the work of welfare‐reliant women and to reveal commitment to work in the experiences of 84 welfare‐reliant, rural women interviewed for this study. Understanding the domains where welfare‐reliant women exhibit commitment to work may help policy makers, trainers, and employers design and implement interventions that enhance chances of success for these women in the formal, paid workforce. Discussion focuses on the women's formal labor force participation in the past and desire for wage work in the future; barriers to labor force participation, both personal and in the rural job market; informal work and the work of care; support networks; survival strategies for making ends meet while receiving welfare; and the stigma of welfare receipt.     

The measurement of gender wage discrimination: the distributional approach revisited

This paper presents the advantages of taking into account the distribution of the individual wage gap when analyzing female wage discrimination. Several limitations of previous approaches such as the classic Oaxaca–Blinder and the recent distributive proposals using quantile regressions or counterfactual functions are thoroughly discussed. The methodology presented here relies on Jenkins’ (J Econom 61:81–102, 1994) work and supports the use of poverty and deprivation literature techniques that are directly applicable to the measurement of discrimination. In an empirical illustration, we quantify the relevance of the glass ceiling and sticky floor phenomena in the Spanish labor market.     

Occupational licensing and the transition from welfare to work

Occupational licensing laws erect barriers to entry into various labor markets, impeding the upward mobility of welfare recipients seeking to transition into employment. This paper, recognizing that labor market interventions have often been used precisely because of this effect, proceeds to examine various restrictions which directly affect low-skilled workers in the U.S. economy who now have stronger incentives to participate in labor markets in response to recent welfare policy reforms. Three distinct types of labor market restrictions are identified: (1) the licensing of professional, high-skilled occupations tends to crowd workers into lower-skilled occupations, lowering such wages and thus weakening work incentives among the welfare population; (2) quantity license restrictions (permits which set quotas limiting the overall number of suppliers in a market) suppress demand for low-skilled workers, and may substantially reduce work opportunities and, thus, incentives. Taxi license restrictions alone, for instance, may result in several hundreds of thousands of lost employment opportunities throughout the United States; and (3) quality license restrictions, where entrants face higher entry costs (typically through educational requirements above the requirements of the market), may paradoxically provide welfare recipients with enhanced opportunities for employment, particularly when coupled with job-training subsidies typically extended to welfare recipients. This we call a “de facto liberalization” of occupational licensure. While incumbent workers are certain to resist enhanced entry by welfare recipients into licensed occupations, vocational schools should aggressively support such entry, affording a possible realpolitik to the migration path envisioned. More interestingly, once entry has accelerated under de facto liberalization, occupational license rents will predictably decline, thus increasing the likelihood of explicit liberalization, and further opening labor markets to competitive entry.     

Failing to Make Ends Meet: Dubious Financial Success Among Employed Former Welfare to Work Program Participants

To many, declining caseloads and increased labor market entry substantiate welfare reform’s success. This study examines how Louisiana welfare to work program participants who succeeded by leaving assistance and obtaining employment are making ends meet, if their needs are met and which characteristics are associated with having their needs met. Telephone survey data reveal low wages, informal labor market activity, government, community, and social support use, and notable levels of unmet needs. A multivariate analysis shows workers with higher earnings and regular nonmonetary help from family and friends are likely to have more needs met. Those likely to have fewer needs met report lower wages, more young children, use of government support programs and informal labor market activity.     

Decomposing culture: an analysis of gender,language, and labor supply in the household

Despite broad progress in closing many dimensions of the gender gap around the globe, recent research has shown that traditional gender roles can still exert a large influence on female labor force participation, even in developed economies. This paper empirically analyzes the role of culture in determining the labor market engagement of women within the context of collective models of household decision making. In particular, we use the epidemiological approach to study the relationship between gender in language and labor market participation among married female immigrants to the U.S. We show that the presence of gender in language can act as a marker for culturally acquired gender roles and that these roles are important determinants of household labor allocations. Female immigrants who speak a language with sex-based grammatical rules exhibit lower labor force participation, hours worked, and weeks worked. Our strategy of isolating one component of culture reveals that roughly two thirds of this relationship can be explained by correlated cultural factors, including the role of bargaining power in the household, and the impact of ethnic enclaves and that at most one third is potentially explained by language having a causal impact.     

The impact of childbirth on Spanish women’s decisions to leave the labor market

The present paper analyzes the effect of childbirth on Spanish women??s decisions to withdraw from paid work, defined here as the transition from employment to out of the labor force due to the requirements of household production. Decisions regarding fertility and labor market participation are interrelated and depend on individual and household characteristics, as well as external variables such as the availability of childcare services. We postulate that a female??s decision to leave the labor market is taken in a household context, and thus is the outcome which maximizes household welfare after taking into account the employment and earnings characteristics of all household members. We pay special attention to the effect of the male partner??s characteristics upon the female??s decision to withdraw from the labor market. Our empirical results show that in order to better define social and labor market policies on work and family reconciliation, increased attention should be paid to the job characteristics of males given their effect on the optimal assignment of tasks within the household following childbirth.     

Family labor supply,taxation and saving in an imperfect capital market

This paper combines income and expenditure with time use data to provide a unique picture of the labor supply, household production, saving and consumption decisions of two-adult households over a life cycle defined in terms of the presence and ages of children. The study also draws on data for household borrowing and lending, direct and indirect benefits and taxes to calibrate a “family” life cycle model at the core of which is the hypothesis that households face a borrowing interest rate that rises with the amount of non-collateral based borrowing. The household members jointly choose time paths of time use, consumption and saving over their life cycle in the face of this capital market imperfection. Importantly, households are shown to differ significantly in their saving behavior in a way that depends on secondary earner labor supply, with a strong positive association between saving and the income of the second earner. The results differ sharply from those of the existing literature.     

The Politics of Women's Economic Independence

We identify the political conditions that shape the economicposition of married/cohabiting women and of the economicallymost vulnerable group of women—single mothers. Specifically,we examine the determinants of reductions in single mothers'poverty rate due to taxes and transfers, and women's wages relativeto spouses'/ partners' wages. The Luxembourg Income Study archiveyields an unbalanced panel with 71 observations on 15 countries.The principal determinants of poverty reduction due to taxesand transfers are left government, constitutional veto points,and welfare generosity. The relative wage of women in couplesis a function mainly of female labor force participation, parttime work among women, and women's mobilization. In explainingthe causal pathways to these outcomes, we highlight the interrelationshipsof welfare state, care, and labor market policies.     

Labor force exit decisions of new mothers

Using unique administrative data from the state of Georgia, this paper investigates women’s decisions to exit the labor market upon the birth of a child. Exits rates and their changes over time varies dramatically between married and single women giving birth. Only the pattern among single, less educated women can be considered consistent with changing labor force participation rates of women over the period of analysis. Potential policy implications of these changes are discussed.     

Alternative Economic Strategies in Low‐Income Rural Communities: TANF,Labor Migration,and the Case of the Pine Ridge Indian Reservation*

Abstract The premise of current welfare policies is that recipients are avoiding work and that requiring work will end welfare dependency. Unemployment is equated with labor market inexperience and economic inactivity. The Pine Ridge Indian Reservation, a poor rural community with high unemployment, contradicts these assumptions. Many Lakota individuals have off‐reservation wage work experience; there simply are not enough local jobs to absorb their human capital. Lakota households, however, are involved in a complex combination of socially embedded economic activities outside wage work. Imposing the premises of TANF on Pine Ridge results in indirect pressures toward urban migration and cultural assimilation. Furthermore, by imposing rigid notions of work, TANF runs the risk of destroying the economic flexibility that makes survival possible for poor households in Pine Ridge. Welfare and development policies need to reflect the real economies of rural American Indian reservations rather than those of superficially assimilated and economically imagined communities.     

THE FUN GOD: SPORTS,RECREATION, LEISURE,AND AMUSEMENT IN THE UNITED STATES

Twenty‐five Caribbean and Latin American nations were examined to determine the relationship between potential female headed families and other social indicators. Regression analysis reveals that women's labor market participation is associated with the proportion of families potentially headed by women. The share of girls in secondary school is also associated with the dependent variable. Social indicators of modernization and dependency were regressed on potential female‐headed households. Neither approach alone explains the formation of female‐headed families in the region.     

De facto immigration enforcement,ICE raid awareness,and worker engagement

We explore whether fear of apprehension affects immigrants' labor market engagement by examining how Immigration and Customs Enforcement (ICE) removals due to immigration violations and increased awareness of immigration raids impact their labor market outcomes. We find that ICE deportations are associated with reductions in the labor force participation and employment of likely undocumented immigrants when compared to similarly skilled foreign-born US citizens. Effects are particularly strong among women, especially those with children, as well as in industries likely targeted by ICE raids. Controlling for perceived threats and de jure immigration policies has little impact on these results.     

What Makes Single Mothers Expand or Reduce Employment?

To explore single mothers’ labor market participation we analyzed specific circumstances and dynamics in their life courses. We focused on the question which individual and institutional factors determine both professional advancement and professional descent. The German Socio-Economic Panel (1984–2010) provides all necessary information identifying episodes of single motherhood and analyzing restrictions and interruptions of employment during life courses. Since family statuses of single mothers are partially endogenous and can end in multiple ways, we used semi-parametric survival models. Competing risks estimations showed that occupational careers of single mothers are influenced by individual factors such as appointed and reliable working hours, and further by the institutional determinants childcare or welfare benefits.