Social Assistance and Labour Supply

CESifo Working Paper Series No. 225

46 Pages Posted: 16 Jun 2001

See all articles by Louis N. Christofides

Louis N. Christofides

University of Cyprus - Department of Economics; University of Guelph; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 1999

Abstract

The longitudinal, 1988-89, LMAS makes it possible to study the interaction between social assistance and labour supply while allowing for substantial time dependence. Tobit equations for hours worked on and off social assistance, which allow for endogenous selection of social assistance status, are estimated using FIML. Small, but statistically significant, effects for a social assistance benefit variable are obtained, particularly for females. A claw-back variable is not consistently useful. The wage rate has a consistently negative coefficient in the selection equations and is important in the Tobit equations. The paper attempts to reconcile results in earlier literature.

JEL Classification: I38, J22

Suggested Citation

Christofides, Louis N., Social Assistance and Labour Supply (December 1999). CESifo Working Paper Series No. 225. Available at SSRN: https://ssrn.com/abstract=269454

Louis N. Christofides (Contact Author)

University of Cyprus - Department of Economics ( email )

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University of Guelph ( email )

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IZA Institute of Labor Economics

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