Volume 37, Number 3 (Summer) 2002
Keane, Michael P. and Kenneth I. Wolpin. 2002. "Estimating Welfare Effects Consistent with Forward-Looking Behavior. Part II: Empirical Results." Journal of Human Resources 37(3):600-622.
In this paper. we provide estimates of welfare benefit effects on a set of behaviors that includes welfare participation. fertility. marriage. work and schooling using approximations to the decision rules that would be derived from an explicit dynamic optimization problem. We use the stylized model and associated simulations from Part I as a guide in specifying the approximate decision rules that we estimate here. The estimates are based on data from the 1979 youth cohort of the National Longitudinal Surveys of Labor Market Experience (NLSY79).
Michael P. Keane is a professor of economics at Yale University. Kenneth I. Wolpin is a professor of economics at the University of Pennsylvania. The authors are grateful for support from NICHD under grant no. HD-34019. Morris Davis provided excellent research advice. The data used in this article can be obtained beginning November 2002 through October 2005 from Kenneth 1. Wolpin. Department of Economics. University of Pennsylvania. 3718 Locust Walk. Philadelphia. PA 19104.
© 2003 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X