Car ownership and welfare‐to‐work | Zendy

Ong Paul M. | Zendy

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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.

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