TY - JOUR
T1 - Time-inconsistency and welfare program participation
T2 - Evidence from the nlsy
AU - Fang, Hanming
AU - Silverman, Dan
PY - 2009/11
Y1 - 2009/11
N2 - 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 National Longitudinal Surveys (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 a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements.
AB - 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 National Longitudinal Surveys (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 a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements.
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U2 - 10.1111/j.1468-2354.2009.00559.x
DO - 10.1111/j.1468-2354.2009.00559.x
M3 - Article
AN - SCOPUS:70350491388
SN - 0020-6598
VL - 50
SP - 1043
EP - 1077
JO - International Economic Review
JF - International Economic Review
IS - 4
ER -