Welfare Effects on Female Headship with Area Effects

Abstract

The existing literature on welfare effects on female headship in the United States shows significant positive correlations in cross-section, possibly increasing over time. However, when geographic, or area, effects are permitted in the estimation, these correlations either disappear or reverse in sign. The results have implications for the study of welfare effects in other countries, including Canada, where benefits vary considerably across provinces and localities within them.

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