Download this Paper Open PDF in Browser

How Costly is Welfare Stigma? Separating Psychological Costs from Time Costs

41 Pages Posted: 1 Feb 2010  

Colleen Flaherty Manchester

University of Minnesota

Kevin J. Mumford

Purdue University

Date Written: December 1, 2009

Abstract

This paper empirically decomposes the costs of welfare participation using a model of labor supply and participation in multiple welfare programs. Prior estimates of the cost of welfare participation have not differentiated psychological costs, or stigma, from the effort required to become eligible and maintain eligibility (time costs). The relative size of these two costs has implications for policy. We find that psychological costs are at least as large as the time costs associated with participation in food assistance programs. In addition, we find that the incidence of psychological costs is inconsistent with these costs acting as an effective screening mechanism.

Keywords: Program Participation, Welfare Stigma, Labor Supply, Structural Estimation

JEL Classification: I3, J2

Suggested Citation

Manchester, Colleen Flaherty and Mumford, Kevin J., How Costly is Welfare Stigma? Separating Psychological Costs from Time Costs (December 1, 2009). Available at SSRN: https://ssrn.com/abstract=1544601 or http://dx.doi.org/10.2139/ssrn.1544601

Colleen Flaherty Manchester

University of Minnesota ( email )

3-300R CarlSMgmt
Minneapolis, MN 55455
United States
612 625-9667 (Phone)

Kevin J. Mumford (Contact Author)

Purdue University ( email )

West Lafayette, IN 47907-1310
United States
7654966773 (Phone)
7654967434 (Fax)

HOME PAGE: http://www.mgmt.purdue.edu/faculty/kjmumfor/home.asp

Paper statistics

Downloads
162
Rank
154,276
Abstract Views
953