Working Paper: NBER ID: w16659
Authors: Dhaval M. Dave; Nancy E. Reichman; Hope Corman; Dhiman Das
Abstract: Exploiting variation in welfare reform across states and over time and using relevant comparison groups, this study estimates the effects of welfare reform on an important source of human capital acquisition among women at risk for relying on welfare: vocational education and training. The results indicate that welfare reform reduced enrollment in full-time vocational education and had no significant effects on part-time vocational education or participation in other types of work-related courses, though there is considerable heterogeneity across states with respect to the strictness of educational policy and the strength of work incentives under welfare reform. In addition, we find heterogeneous effects by prior educational attainment. We find no evidence that the previously-observed negative effects of welfare reform on formal education (including college enrollment), which we replicated in this study, have been offset by increases in vocational education and training.
Keywords: No keywords provided
JEL Codes: I3; I38; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Welfare reform (I38) | Reduced full-time vocational education enrollment (I21) |
| Welfare reform (I38) | No significant effects on part-time vocational education (I21) |
| Welfare reform (I38) | No significant effects on other work-related courses (J29) |
| Welfare reform (I38) | Greater barriers to educational engagement among women with less than a high school education (I24) |
| Stricter educational policies (I28) | Larger declines in vocational training participation (J24) |
| Welfare reform (I38) | No offsetting increases in vocational education and training (J24) |
| Welfare reform (I38) | Adverse impact on educational attainment among vulnerable populations (I24) |