U.S. Labor Market Dynamics in the 21st Century
نویسنده
چکیده
I investigate the trend reversal in the labor supply of single childless women that occurred at the turn of the 21st century and its continued decline over the last decade. I find that while traditional static labor supply theory and demographic transitions fall short in explaining this recent phenomenon, there is strong evidence that increased participation in the Supplemental Nutrition Assistance Program (SNAP) has contributed to the decline. I identify the impact of SNAP on both the extensive and intensive margins of labor supply with an instrumental variables approach that exploits the state-level variation of post-2000 policy reforms affecting SNAP eligibility and enrollment criteria. Adding more structure to the model by framing program participation as a latent variable discrete choice, I test whether or not this choice interacts with individual unobserved heterogeneity – in other words, if individuals decide to participate in SNAP based on expected idiosyncratic gains – and estimate the effect of SNAP on labor supply for the marginal participant. Estimation results from a normal selection model and the method of Local Instrumental Variables show that SNAP participation is largely detrimental to the labor market productivity of single childless women, for whom observable gains of participation are small but unobserved gains from participation are large, suggesting they perceive the transaction costs of participation to be low.
منابع مشابه
Struggling Against U.S. Labor's Decline Under Late Capitalism: Lessons for the Early 21st Century
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