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The effects of local labour market conditions on welfare programme participation

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A fractional imputation method is applied to Iowa administrative data to deal with a problem of missing data. The effects of local labour market conditions and mobility of household heads on Family Investment Program (FIP) participation are evaluated. Results show that mobility increases the opportunity for employment and decreases the FIP participation rate for low-income families. An increase in predicted unemployment rates decreases labour force participation and increases programme participation; an increase in unpredicted unemployment rates increases labour force participation and decreases programme participation. Overall, the effects are relatively larger in rural areas than in nonrural areas in Iowa.

Document Type: Research Article


Affiliations: 1: Department of Agricultural & Applied Economics, Texas Tech University, Lubbock, TX 79409, USA 2: Department of Economics, Iowa State University, Ames, IA 50011, USA 3: Department of Statistics, Iowa State University, Ames, IA 50011, USA

Publication date: April 10, 2006

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