Author(s): Ong, Paul M
Published: 2002 by Journal of Policy Analysis and Management, Vol. 21, No. 2, pp 255-268
Online Access: http://www.uctc.net/papers/540.pdf
Abstract: This study examines the role of car ownership in facilitating employment among recipients under the current welfare-to-work law. Because of a potential problem with simultaneity, the analysis uses predicted car ownership constructed from two instrumental variables, insurance premiums and population density for car ownership. The data come from a 1999-2000 survey of TANF recipients in the Los Angeles metropolitan area. The empirical results show a significant independent contribution of car ownership on employment. The presence of an predicted ownership is associated with a 9 percentage point increase in the odds of being employed. Moreover, the results indicate that lowering insurance premiums by $100 can increase the odds of employment by 4 percentage points.
Category: Transportation Access and Equity Transportation, Employment, and Poverty
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