The transition from welfare-to-work: How cars and human capital facilitate employment for welfare recipients

Using a rich panel of data on welfare recipients in Alameda, Los Angeles, and San Joaquin Counties in California, this paper examined the relationship between transportation, human capital, family obstacles, socioeconomic constraints, and employment outcomes for welfare recipients. This paper reports the multinomial logit results that test the spatial mismatch hypothesis, car ownership thesis, and human capital thesis for employment outcome for welfare recipients. First, with respect to the spatial mismatch hypothesis, our work suggests that spatial proximity to jobs was not particularly important in explaining employment outcomes. Second, the private mobility measures, especially car ownership, were found to be significant predictors of employment and exiting welfare. Finally, human capital played an important role for welfare mothers who obtained a job and left the welfare system, and the number of children and their physical and mental challenges were significant barriers to economic self-sufficiency.

Research highlights
► First, with respect to the spatial mismatch hypothesis, our work suggests that spatial proximity to jobs was not particularly important in explaining employment outcomes.
► Second, the private mobility measures, especially car ownership, were found to be significant predictors of employment and exiting welfare.
► Finally, human capital played an important role for welfare mothers who obtained a job and left the welfare system, and the number of children and their physical and mental challenges were significant barriers to economic self-sufficiency.