The relation between public assistance and self-employment in census tracts: a long-term perspective

Pankaj C. Patel, CA (Niels) Rietveld*, Igor Pereira

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
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Abstract

We 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.

Original languageEnglish
Number of pages37
JournalJournal of Evolutionary Economics
Early online date15 Oct 2021
DOIs
Publication statusPublished - 15 Oct 2021

Bibliographical note

JEL codes: H5 · L26 · R13

Publisher Copyright:
© 2021, The Author(s).

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