WELFARE EFFECTS ON FEMALE HEADSHIP WITH AREA EFFECTS

The existing literature on welfare effects on female headship in the U nited States shows significant positive correlations in cross-section, possibly increasing over time. However, when geographic, or area, eff ects are permitted in the estimation, these correlations either disapp ear 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.