Helping the Working Poor: Employer- vs. Employee-Based Subsidies

In the United States and Europe there has been renewed interest in subsidizing firms that employ disadvantaged workers as a means of addressing poverty and other social problems. In contrast, the prevailing practice is largely to provide social welfare benefits directly to individuals. Which approach is better? We re-examine the relative merits of employee- versus employer-based labor market subsidies and conclude there are good reasons to continue to rely on the direct, employee-based approach. In practice, low-wage workers are seldom either low-skill or low-income workers. Furthermore, workers who might quality for a firm-based subsidy are reluctant to so identify themselves for fear of being stigmatized or labeled as needy. Thus, employer-based subsidy programs have lower participation rates and correspondingly higher per capita expenditures than employee-based subsidy programs

The Role of Media Outreach and Program Modernization in the Growth of the SNAP Caseload

This research seeks to understand the role of information, in the form of media campaigns, and changes in transaction costs, in the form of online applications and call centers, in the growth in county-level SNAP caseloads. We find that SNAP radio advertisements are associated with a small increase in the SNAP caseload, though the magnitude of the estimates are sensitive to the econometric specification. The SNAP television ads, which were run only in 2006, are negatively correlated with caseloads. We find evidence of endogeneity in the placement of the advertising campaigns, leading to a positive bias in the estimated effect of the radio ad campaigns and a negative bias in the estimated effect of the TV ad campaigns. We also find the modernization policies are generally negatively correlated with caseloads, suggesting that providing information via the web and call centers did not successfully lower transaction costs in a uniform way that lead to higher SNAP participation.Supplemental Nutrition Assistance Program, SNAP, food stamps, food assistance, outreach, advertising, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, H53, I3,

Love at What Price? Estimating the Value of Marriage

Using a law within Social Security that provides clear financial incentives to delay marriage, we estimate the financial value of a month of marriage. Specifically, the law provides that widows who are eligible for Social Security benefits on their deceased spouse\u27s earnings records are eligible for benefits at age 60, unless they remarry before that age. If they remarry before that age, they cannot claim widow benefits and must wait until at least age 62 to claim spousal benefits on their new husband\u27s record, which are typically less generous than widow benefits. To generate an estimate of what this behavior implies about the value of marriage, we use data from five panels of the Survey of Income and Program Participation linked to administrative data from Social Security. We estimate the cost of marrying before age 60 imposed by the Social Security program. We develop a model that reflects the institutional details of Social Security and generate a likelihood function that reflects that model. By taking advantage of the variation in these costs and when or whether widows remarry before age 60, we estimate the benefit of marriage to be $8000/month. These estimates appear to be reasonable in the context of the short length of time widows are willing to wait and the high value of Social Security benefits

Social Security and the Timing of Divorce

The Social Security system contains many features designed to provide an adequate retirement income for familes, rather than just individual retired workers. The most important of these features is the spousal benefit, under which secondary earners are entitled to receive a monthly payment of 50 percent of their spouse's monthly Social Security benefit. However, shifts in family structure since the creation of the Social Security program have led to criticisms of the spousal benefit on equity grounds. Using the Panel Study of Income Dynamics (PSID) Marital History File, this paper focuses on one specific implication: Social Security's divorce rules. We find that vulnerable couples are more likely to delay divorce in order to recieve spousal benefits, however the difference is small and statistically insignificant.Social Security, divorce, spousal benefit

Earnings Losses for Injured Workers

This article address the question "What proportion of all injured workers received adequate wage replacement?

The Future of Government Financing of Higher Education

[Excerpt] Outline of a presentation to be made to the American Enterprise Institute Conference on “Higher Education After the Spelling Commission: An Assessment” in Washington DC, March 13, 2007

Stepping Stone or Dead End? The Effect of the EITC on Earnings Growth

While many studies have found that the EITC increases the employment rates of single mothers, no study to date has examined whether the jobs taken by single mothers as a result of the EITC incentives are "dead-end" jobs or jobs that have the potential for earnings growth. Using a panel of administrative earnings data linked to nationally representative survey data, we find no evidence that the EITC expansions between 1994 and 1996 induced single mothers to take "dead-end" jobs. If anything, the increase in earnings growth during the mid-to-late 1990s for single mothers who were particularly affected by the EITC expansion was higher than it was for other similar women. The EITC encourages work among single mothers, and that work continues to pay off through future increases in earnings.earned income tax credit, earnings, single mothers

How Well Can We Track Cohabitation Using the SIPP? A Consideration of Direct and Inferred Measures

Cohabitation is an alternative to marriage and to living independently for an increasing number of Americans. Despite this fact, research exploring links between living arrangements and economic behavior is limited by a lack of data that explicitly identify cohabiting couples. To aid researchers in using the Survey of Income and Program Participation (SIPP) rich data for cohabitation issues, our paper considers direct and inferred measures of cohabitation. Our findings suggest that: (1) the best inferred measures in pre-1966 SIPP depends upon a researcher\u27s goals, and (2) the SIPP counts a larger number of cohabiting couples than the widely used CPS

Safety Regulation in Professional Football: Empirical Evidence of Intended and Unintended Consequences

In response to increasing public awareness and negative long-term health effects of concussions, the National Football League implemented the “Crown-of-the-Helmet Rule” (CHR). The CHR imposes penalties on players who initiate contact using the top of the helmet. This paper examines the intended effect of this policy and its potential for unintended consequences. We find evidence supporting the intended effect of the policy- a reduction in weekly concussion reports among defensive players by as much as 32% (34% for all head and neck injuries), but also evidence of an increase in weekly lower extremity injury reports for offensive players by as much as 34%