Policy analysts Frances Fox Piven and Richard A. Cloward have put forth a bargaining power model of earnings. More specifically, they have argued that the higher workers' bargaining power, the higher their earnings and the higher the level of welfare benefits, the higher workers' bargaining power. Thus, based on Piven and Cloward's model, one would predict a positive relationship between welfare benefit levels and earnings. Using time series data I test Piven and Cloward's model and find support for it. The policy implications of my findings are discussed.
Lewis, Michael Anthony
"A Time Series Analysis of the Effect of Welfare Benefits on Earnings,"
The Journal of Sociology & Social Welfare: Vol. 28
, Article 9.
Available at: http://scholarworks.wmich.edu/jssw/vol28/iss4/9