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1 – 10 of 20Jorgen Hansen, Magnus Lofstrom, Xingfei Liu and Xuelin Zhang
This article analyzes transitions into and out of social assistance (SA) in Canada. We estimate dynamic probit models, controlling for endogenous initial conditions and unobserved…
Abstract
This article analyzes transitions into and out of social assistance (SA) in Canada. We estimate dynamic probit models, controlling for endogenous initial conditions and unobserved heterogeneity, using longitudinal data extracted from the Survey of Labour and Income Dynamics (SLID) for the years 1993–2010. The data indicate that there are substantial provincial differences in SA participation with higher participation rates in the eastern part of the country. However, since the mid-1990s, participation rates have fallen substantially in all provinces with only a modest increase at the end of the observation period. Results from the probit models suggest that there is a significant time dependency in social assistance, even after controlling for endogenous initial conditions and unobserved heterogeneity. The extent of this state dependence varies across provinces.
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Chunbei Wang and Magnus Lofstrom
The purpose of this paper is to examine the impact of the tragic events of 9/11 on the self‐employment entry/exit decisions of native‐born Hispanics.
Abstract
Purpose
The purpose of this paper is to examine the impact of the tragic events of 9/11 on the self‐employment entry/exit decisions of native‐born Hispanics.
Design/methodology/approach
The paper uses the difference‐in‐differences approach with native Whites as the control group. The dynamics of entry and exit decisions are examined using data from 1999‐2003 CPS‐ORG.
Findings
The estimates reveal a negative impact of 9/11 on Hispanics' self‐employment entry decisions, which is mainly the result of less entry from the wage sector, and it has increased Hispanics' self‐employment exit, which is mainly the result of increased exit to the wage sector.
Research limitations/implications
The results suggest that native Hispanics may have experienced increased job opportunities in the wake of 9/11 and hence became less likely to be “pushed” into self‐employment and more likely to be “pulled” out of self‐employment. The improved labor market opportunities stem from government increased sanctions against undocumented immigrants, which reduced the demand for illegal immigrant workers, many of whom are Hispanic immigrants, and that native‐born Hispanics are likely to be relatively close substitutes for immigrants Hispanics. A limitation of the research is that the estimates are statistically insignificant, possibly due to the relatively small sample size.
Originality/value
Existing studies that examine the impact of 9/11 on the Hispanic's labor market outcomes are all focused on immigrants or wage‐employment. The paper complements the literature by examining the impact of 9/11 on native‐born Hispanics and in particular their self‐employment decisions, and thus provides a more complete picture of the impact of 9/11 on Hispanics.
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This paper utilizes the self-employed to analyze the observed increase in the educational earnings premium in the 1980s. The paper compares the predictions of the signaling and…
Abstract
This paper utilizes the self-employed to analyze the observed increase in the educational earnings premium in the 1980s. The paper compares the predictions of the signaling and human capital models in response to an exogenous demand shock such as a skill-biased technological change. Since the self-employed have no incentive to invest in a costly signal to show to employers their productivity, a change in the schooling equilibrium should not affect their earnings. Four testable hypotheses are derived. The findings suggest that the signaling model may indeed predict the observed changes in the schooling premium that are not consistent with the predictions of the human capital model.
Magnus Lofstrom and Chunbei Wang
This paper analyzes causes of the low self-employment rate among Mexican-Americans by studying self-employment entry and exits utilizing panel data from the Survey of Income and…
Abstract
This paper analyzes causes of the low self-employment rate among Mexican-Americans by studying self-employment entry and exits utilizing panel data from the Survey of Income and Program Participation (SIPP). Our results indicate that differences in education and financial wealth are important factors in explaining differences in entrepreneurship across groups. Importantly, we analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital intensiveness, or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups.
Magnus Lofstrom and John Tyler
In this paper, we develop a simple model of the signaling value of the General Educational Development certificate (GED) credential. The model illustrates necessary assumptions…
Abstract
In this paper, we develop a simple model of the signaling value of the General Educational Development certificate (GED) credential. The model illustrates necessary assumptions for a difference-in-differences estimator that uses a change in the GED passing standard to yield unbiased estimates of the signaling value of the GED for marginal passers. We apply the model to the national 1997 passing standard increase, which affected GED test takers in Texas. We utilize unique data from the Texas Schools Micro Data Panel (TSMP) that contain demographic and GED test score information from the Texas Education Agency linked to pre- and post-test-taking Unemployment Insurance quarterly wage records from the Texas Workforce Commission. Comparing Texas dropouts who acquired a GED before the passing standard was raised in 1997 to dropouts with the same test scores who failed the GED exams after the passing standard hike, we find no evidence of a positive GED signaling effect on earnings. However, we find some evidence suggesting that our finding may be due to the low GED passing threshold that existed in Texas for an extended period.
The purpose of this paper is to provide an overview of the issue of social assistance receipt among immigrants to Sweden and compare to receipt by natives.
Abstract
Purpose
The purpose of this paper is to provide an overview of the issue of social assistance receipt among immigrants to Sweden and compare to receipt by natives.
Design/methodology/approach
The paper describes the institutional background, reports statistical information and surveys the literature on the immigrant‐native disparity in social assistance receipt.
Findings
Most out‐payment for social assistance in Sweden refers to foreign‐born persons, a category comprising 14 percent of the population. Immigrants tend to assimilate out of social assistance receipt. However, receipt continues to be higher many years after immigration among immigrants from non‐rich countries than for natives with several identical characteristics. The elevated probabilities of social assistance receipt among immigrants from non‐rich countries are interpreted to be mainly due to failed integration into the labor market at the destination.
Practical implications
Policies for integrating immigrants into the labor market are also policies for reducing social assistance receipt among immigrants and reducing immigrant‐native social assistance disparity. However, other factors such as the structure of Swedish welfare policy play a role as well.
Originality/value
This is the first survey of the literature on disparities in social assistance receipt between immigrants and natives in Sweden.
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