Thei Mplicationosf Differencebse Tweene Mployearn d Worker

8/12/2019 Thei Mplicationosf Differencebse Tweene Mployearn d Worker

1/7

ssociation for Public Policy nalysis and Management

Introduction to Research ArticlesAuthor(s): Maureen A. PirogSource: Journal of Policy Analysis and Management, Vol. 26, No. 4 (Autumn, 2007), pp. 731-736

Published by: Wileyon behalf of Association for Public Policy Analysis and ManagementStable URL: http://www.jstor.org/stable/30162800.

Accessed: 27/03/2014 04:21

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at.http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of

content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms

of scholarship. For more information about JSTOR, please contact [email protected].

.

WileyandAssociation for Public Policy Analysis and Managementare collaborating with JSTOR to digitize,

preserve and extend access toJournal of Policy Analysis and Management.

http://www.jstor.org

This content downloaded from 103.24.98.179 on Thu, 27 Mar 2014 04:21:07 AMAll use subject to JSTOR Terms and Conditions
http://www.jstor.org/action/showPublisher?publisherCode=blackhttp://www.jstor.org/action/showPublisher?publisherCode=appamhttp://www.jstor.org/stable/30162800?origin=JSTOR-pdfhttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/stable/30162800?origin=JSTOR-pdfhttp://www.jstor.org/action/showPublisher?publisherCode=appamhttp://www.jstor.org/action/showPublisher?publisherCode=black


2/7

Introduction to Research Articles MaureenA. Pirog

THE MPLICATIONSF DIFFERENCESETWEENMPLOYERND WORKEREMPLOYMENT/EARNINGSEPORTS OR POLICYEVALUATIONMany studies have examined the economic progress and well-being of femalewelfare-leavers. Because national survey data systematically and severely under-count public assistance receipt, most of these studies haverelied on state surveyandadministrative data. State survey data usually are obtained from surveys adminis-tered to a subset of a state's caseload at a particularpoint in time, with follow-upsurveys administered at subsequent intervals. Alternatively,administrative datafrom state welfare offices provide information on demographic characteristics andrecipiency status, with information on employment and earnings coming fromunemployment insurance (UI) reports. The extensive use of these alternativedata sources has made it difficult to compare outcomes within and across states.Moreover, because survey and administrative measures of employment andearnings may differ substantially, the reliability of any overall assessment of labormarketoutcomes based on these alternativeapproaches is open to question.In this article, the authors use data from the 1998 and 1999 waves of the ChildSupport Demonstration Evaluation Resident Parent Surveys (CSDE) to exploreindividual differences between surveyand UI employment and earnings reports forWisconsin sample of current and former welfare recipients. After providing evi-dence of misreports from both sources, the authors document the degree of dis-crepancy between survey and UI earnings and employment measures, and assessthe difference between the two earnings measures in estimates of simple humancapital (earnings) functions. Last, the authors evaluate the correspondence of thetwo measures with a hardship ndicator of economic well-being.Thereare substantial disparities between surveyand UI employment and earningsreports among low-skilled women that cannot be explained by differences in cover-age or characteristics of employment. However,with a few exceptions, estimates ofemployment and earnings growth within demographic groups differentiated byrace-ethnicity and education level are not sensitive to the source of data used. Theauthors find that there is a negative association between both UI and survey-basedincome-to-need ratios and the incidence of various hardships, but little evidencethat either survey or UI based income-to-needs ratios are more closely associatedwith the incidence of hardships than the other.Given the similarity of most of the results across the two sources of earnings-employment data, the fact that UI earnings seem to track hardship measures ofJournal of Policy Analysis and Management, Vol. 26, No. 4, 731-736 (2007)(c)2007 by the Association for Public Policy Analysis and ManagementPublished by Wiley Periodicals, Inc. Published online in Wiley InterScience(www.interscience.wiley.com)DOI: 10.1002/pam.20303

*WILEYUnterScience(R)DISCOVER SOMETHING GREAT

http://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsp


3/7

732 / Introduction to Research Articles

well-being at least as well as survey earnings, as well as the ready availability andconsistency of administrative data across states, the authors conclude that UI dataare preferredto surveydata for monitoring labor market outcomes and trackingtheeconomic well-being of welfare-affectedpopulations.CANADA'SVOLUNTARYRETPROGRAM: IMITEDUCCESSDESPITENDUSTRY OSPONSORSHIPVoluntary approaches to environmental protection are drawing increasing atten-tion from practitionersand scholars alike. Arguablythe most prominent example ofa public voluntaryprogram is the US EPAs 33/50 program,which encouraged facil-ities releasing 17 high-priority substances to voluntarily reduce their releases by33 percent by the end of 1992 and 50 percent by the end of 1995. Inspired by theapparentsuccess of 33/50, the ARET(AcceleratedReduction/Elimination of Toxics)program challenged facilities across Canada to reduce their discharges of 87 sub-stances by 50 percent and 30 others by 90 percent by the year 2000. A critical dif-ference between ARET and 33/50, however, was that the details of the voluntarychallenge were negotiated and jointly issued by government and industry, withthe rationale that industry co-sponsorship would yield a stronger commitment tovoluntary reductions.On the face of it, the ARETprogramwas a great success. ARETmembers met the50 percent reduction target for 87 substances three years ahead of schedule, andreducedtheiremissions of the 30 highestprioritysubstancesby 61 percent.To evaluatethe ARETprogram, the authors rely on data from the National Pollutant ReleaseInventory for a subset of substances also covered by ARET.They find that ARETmembers generally made greaterreductions than nonmembers. However,as with allvoluntaryprograms,the questionremains whether that is an artifactof self-selection,because facilities that planned to make reductions anyway,whether in response toregulatoryor marketforces, may have preferentiallysigned up for the program.After statistically controlling for self-selection, there is limited evidence ofARET'ssuccess. Analyzing releases of 17 chemicals individually, the authors findthat ARETprompted additional reductions of 5 substances, at most. Consideringfacilities' total releases of the same set of chemicals, ARET appears to haveincreased facilities' emissions. Recent studies of other public voluntary programs,including 33/50, the U.S. Climate Challenge, and the Canadian VoluntaryChallenge for greenhouse gases, similarly find limited or no impacts after control-ling for self-selection. This article offers further evidence that voluntaryprograms'claims of success warrant critical examination. Moreover, the limited impact ofARET offers no basis to conclude that that industry co-sponsorship acceleratesvoluntary emission reductions.THESTIGMAOF PUBLIC ROGRAMS: OESA SEPARATE-CHIPPROGRAM EDUCET?The notion that there is some level of stigma associated with public programs isone explanation for incomplete take-up among eligible children and, in turn, highlevels of uninsurance among low-income children. Even among those enrolled inpublic programs, stigma could contribute to differentialcare experiences across dif-ferent programs. However, differential care experiences can also be explained byunderlying socioeconomic differences across populations, as well as different carenetworks or provider reimbursement schedules. Isolating the stigma effect fromthese other determinants is difficult but important.

Journalof Policy Analysisand Management DOI:10.1002/pamPublished on behalf of the Association for Public Policy Analysisand Management



4/7


5/7


But car insurance rates can vary dramatically,with much higher premiums in poorand minority areas than elsewhere, even after accounting for individual character-istics, drivinghistory,and coverage. Animportantpolicy issue is whether the highercar insurance premiums faced by economically disadvantaged households arebased on de facto discrimination or on fair and legitimate risk factors.This article uses a unique data set assembled from numerous information sourcesto examine the relative influence of place-based socioeconomic characteristics andplace-based risk factors on the spatial pattern of automobile insurance premiumsin the city of Los Angeles.The authors use a novel approachof combining tract-levelcensus data and car insurance rate quotes from multiple companies for subsectionswithin the city of Los Angeles.The quotes are for an individual with identical demo-graphic and auto characteristics, driving records, and insurance coverage. Theyfind that both risk and redlining factors are associated with variations in insurancecosts in the place-based component, with black and poor neighborhoods beingadversely affected, although risk factors are stronger predictors. However, evenafter risk factors are taken into account in the model specification, SES factorsremain statistically significant. Moreover, simulations show that redlining factorsexplain more of the gap in auto insurance premiums between black (and Latino)and white neighborhoods and between poor and nonpoor neighborhoods. The find-ings do not appear sensitive to the individual characteristics of the hypotheticaldriver.Based on this analysis, the authors cannot determine the exact practices insur-ance companies use in setting rates. Regardless of how they are set, residents indisadvantaged neighborhoods suffer direct and indirect impacts of a higher insur-ance premium. The direct cost is the higher out-of-pocket expense for auto premi-ums, which can equal a thousand dollars per year for basic coverage, an extremelyhigh amount for those with low incomes. When insurance is prohibitively high,some residents drive without insurance, which places them and others at greaterpersonal financial risk. There are also indirect effects because higher premiums canbe a barrier o automobileownership,which, in turn,limits access to social activities,services, and economic opportunitiesthat are dispersedthroughoutthe metropolitanregion.PUBLICHOUSING,HEALTH,ND HEALTHEHAVIORS:STHERE CONNECTION?The potential social and economic consequences of low-income housing policy havebeen studied extensively.However,one outcome largely unaddressedby this litera-ture is health. It is widely believed that crime and deteriorating conditions posephysical safety and mental health risks for public housing residents. The lack ofaccess to nutritious fresh produce in dense urban areas where many public housingprojects are located and the dissemination of unhealthy behaviors because of thehigh concentration of poor neighbors are other reasons to doubt the health benefitsof public housing. In contrast to these popular conceptions of public housing, theprogram may provide higher-quality housing than a family can otherwise afford.The subsidized rent may allow strugglinghouseholds to affordan adequatediet andhealth care.Thehigh concentration of poor households may benefit a family'shealththrough importantsocial networksof supportand the proximity of governmentandother social service resources for the poor.

To estimate the health consequences of the public housing program, the authorsanalyze data from the Fragile Families and Child Wellbeing Study.Because publichousing residence is the choice of residents and administrators, results using

Journalof Policy Analysisand Management DOI:10.1002/pamPublished on behalf of the Association for Public Policy Analysis and Management



6/7

Introduction to Research Articles I 735

standardmethods are likelybiased, and theory does not provide a strong predictionabout the direction of this bias. The authors use instrumental variables estimationto minimize the effects of selection into public housing. Together, his analysis rep-resents one of the most comprehensive and systematic attempts to date to measurethe potential health effects of public housing subsidies and provides importantinsights on whether housing interventionsamong poor families can indirectlyeffecthealth outcomes.THE MPACT F CHILD SI ENROLLMENTN HOUSEHOLD UTCOMESThe 1996 welfare reform legislation fundamentallychanged the nature of cash wel-fare, replacing Aid to Families with Dependent Children (AFDC)with TemporaryAssistanceto Needy Families (TANF).Researchersand policy analysts have devotedmuch attention to studying the impact of welfare reform on household outcomes.But much less attention has been paid to the tremendous growth in child partici-pation in the federal Supplemental Security Income (SSI) program that occurredover the same time period. In particular, n contrast to the vast empirical literatureon welfare, there is verylittle empirical researchdocumenting the impact of the SSIprogram on household outcomes.From December 1989 to December 2006, the number of children receiving SSIbenefits increased from 0.26 to 1.08 million. This increase was made possible by a1990 Supreme Court decision that had the effect of liberalizing the medical eligi-bility criteria for children. As other researchers have noted, the timing of thischange in eligibility criteria facilitated the shifting of children from welfare to SSIin the era of welfare reform. In addition, over the same time period the number ofadults age 18 to 64-many with children in the household-receiving SSI benefitsincreased substantially.As a consequence of these coterminous trends, SSI has nowbecome a major source of cash assistance to low-income families with children. Infact, there are now substantially more children living in households with SSIincome than with TANF ncome.In this article, the authors investigate the impact of a child'senrollment in SSI onkey outcome measures such as poverty, parental earnings, and health insurancecoverage. In order to identify a causal relationship between SSI participation andhousehold outcomes, they utilize longitudinal household data from the Survey ofIncome and Program Participation (SIPP). Using data on over 20,000 householdswith children, the authors find that enrollment of a child on SSI leads to a sub-stantial increase in economic resources. For every $100 increase in household SSIincome, total household income increases by roughly $72. This reflects some mod-est offset of other transfer income and conditional household earnings. Also, forevery 100 children who enroll in SSI, 22 children and 37 people are lifted out ofpoverty. Aggregating these effects to the national level, the authors estimate thatthere are approximately 160,000 fewer children in poverty than there would havebeen absent the increase in child SSI enrollment since 1989.CHILDCAREQUALITYN DIFFERENTTATEOLICYCONTEXTSThis article focuses on the use by state governments of subsidies and regulationsto structure the distribution of high-quality child care provided by a fragmented,market-based,mixed-delivery system. Despite a growing body of research on childcarepolicy,little research has directlytested the association between these child carepolicy choices and the actual quality of care, most likely due to data limitations.




7/7


In this article, the authors capitalize on newly available data from the Child CareSupplement to the Fragile Families and ChildWellbeing Study.These data includeobservations of 777 child care settings, which include a range of types of care (forexample, kith and kin care, family child care, and both nonprofit and for-profitcenters) in 14states with different mixes of child care policies. The authors test asso-ciations between subsidy and regulation policies in these states and the quality andtype of child care that children experience.The findings support the claim that child care subsidy and regulation policies areassociated with the quality of care children experience, as well as with their use ofparticular types of care. However,these associations are modest in size and are lim-ited to particular types of care.Althoughthe policy discourseamong advocates oftenimplies that increasedregulationor largersubsidies will dramatically mprove qual-ity, the findings suggest that these policy levers play a more modest role. Further-more, although subsidy and regulation policies were both positively associated withquality (at least in some types of care), the two policy tools may actuallybe workingat cross-purposeswith regardto the availabilityof higher-qualitycare. The authorsfound that generous subsidies were associated with greater use of formal care(which tends to be of higher quality). However,in states with more stringent regu-lations, fewer children were enrolled in these types of care. These results suggestthat states must consider not only how individual child care policies may affect thequality and availabilityof child care, but also how the combination of policy choicesthey make may influence the quality of child care in their states. This caveat ishardlyconfined to child care; it no doubt applies to a wide range of policy goals inwhich states employ both sticks and carrots to influence the behavior of privatefirms, nonprofit organizations, and consumers.


This content downloaded from 103.24.98.179 on Thu, 27 Mar 2014 04:21:07 AMAll bj S O d C di i

Documents

Thei Mplicationosf Differencebse Tweene Mployearn d Worker