2017
DOI: 10.1093/restud/rdx011
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Welfare Dependence and Self-Control: An Empirical Analysis

Abstract: We use data from Florida Transition Program, a welfare reform experiment in the 1990s, to estimate a discrete choice dynamic programming model of labor supply and welfare participation with potentially time-inconsistent individuals. The time preference parameters are identified through exclusion restrictions generated by welfare time limits. Around one-fourth of the individuals can be regarded as present-biased, and they exhibit a low degree of naivety.Time-inconsistency reduces income by 15 percent and the ne… Show more

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Cited by 32 publications
(27 citation statements)
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“…A vast array of decisions have been considered including consumption and savings decisions (e.g., Thaler and Shefrin 1981;Shefrin and Thaler 1988;Levin 1998), criminal behavior (Lee and McCray 2005), overeating (Ruhm 2012), consumer pricing decisions (Esteban et al 2007), welfare receipt (Chan 2014), and worker compensation (Kaur et al 2010(Kaur et al , 2011Parsons and Van Wesep 2013).…”
mentioning
confidence: 99%
“…A vast array of decisions have been considered including consumption and savings decisions (e.g., Thaler and Shefrin 1981;Shefrin and Thaler 1988;Levin 1998), criminal behavior (Lee and McCray 2005), overeating (Ruhm 2012), consumer pricing decisions (Esteban et al 2007), welfare receipt (Chan 2014), and worker compensation (Kaur et al 2010(Kaur et al , 2011Parsons and Van Wesep 2013).…”
mentioning
confidence: 99%
“…At the same time, analysis of the results of functioning of this modernization model shows a slow but steady comprisal by Westernization of countries that chose this model of development, which can be explained by the development of the modernization era to the era of globalization, which spread throughout the world in accordance with its own laws [12].…”
Section: Background Of Globalization and Modernization Potential Of Rmentioning
confidence: 97%
“…Education is necessary for the formation of the future society and the development of human capital assets. The new model of development and use of human capital assetsis based on importance of highly qualified personnel [13]. Training and retraining of professionals of new qualifications is necessary.…”
Section: Digital Transformation Of Urban Infrastructure-innovative Somentioning
confidence: 99%