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Car ownership and welfare‐to‐work
Author(s) -
Ong Paul M.
Publication year - 2002
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/pam.10025
Subject(s) - odds , welfare , simultaneity , metropolitan area , demographic economics , instrumental variable , business , work (physics) , population , labour economics , public economics , economics , demography , geography , logistic regression , econometrics , sociology , medicine , mechanical engineering , physics , archaeology , classical mechanics , engineering , market economy
This study examines the role of car ownership in facilitating employment among recipients under the currentwelfare‐to‐work law. Because of a potential problem with simultaneity, the analysis uses predictedcar ownership constructed from two instrumental variables, insurance premiums and population density for carownership. The data come from a 1999–2000 survey of TANF recipients in the Los Angeles metropolitan area.The empirical results show a significant independent contribution of car ownership on employment. The presence ofan predicted ownership is associated with a 9 percentage point increase in the odds of being employed. Moreover,the results indicate that lowering insurance premiums by $100 can increase the odds of employment by 4percentage points. © 2002 by the Association for Public Policy Analysis and Management.