RT Journal Article
SR Electronic
T1 Welfare Use when Approaching the Time Limit
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 596
OP 618
DO 10.3368/jhr.XLII.3.596
VO XLII
IS 3
A1 Francesca Mazzolari
YR 2007
UL http://jhr.uwpress.org/content/XLII/3/596.abstract
AB Time limits reduce caseloads directly by cutting off benefits after a time-limited usage, but may also provide families with an incentive to reduce welfare use in order to conserve their benefits. Both effects depend on the stock of remaining months of eligibility. This is the first empirical study to incorporate information on this crucial determinant of takeup and eligibility under time limits. Accounting for the potential endogeneity of an individual’s past use, time limits are estimated to have decreased welfare use by 25 percent between 1996 and 2003. Roughly one-fifth of this reduction is due to behavioral responses.