Abstract
AbstractWe present evidence on the long-term relationship between the breadth (the proportion of households) and depth (the amount per household) of public assistance and the prevalence of self-employment in US neighbourhoods. The analysis of decennial data of 71,437 census tracts over four decades (1970 to 2000) shows that the poverty ratio lowers self-employment, and that breadth (but not depth) of public assistance mitigates the negative relationship between the poverty ratio and self-employment. The results are robust to alternate model specifications and are informative about the distributional effects of welfare spendings.
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,General Business, Management and Accounting
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