Abstract
The purpose of this research is to provide a preliminary examination of the effects of per capita tribal payments on the decision making of tribal members. Standard microeconomic theory suggests that unearned income changes the labor-leisure tradeoff in utility maximization models. While the results of per capita payments on hours of work can be easily anticipated, the effects of these payments on human capital accumulation and family size are more ambiguous. Using Census data from 1990 and 2000 we shed some light on the impact of these per capita tribal payments on the lives of the recipients. We concentrate on three tribes in the state of Michigan: the Saginaw Chippewa Tribe, the Keweenaw Bay Indian Community, and the Pokagon Band of Potawatomi Indians of Michigan. The results lend support to the basic labor theory conclusion that an increase in nonlabor income causes individuals to decrease their work efforts. There is also weak evidence that the payment of per capita payments from casino profits is increasing the fertility rate of Saginaw Chippewa tribal families.
Highlights
From its modest beginnings in bingo halls among the Seminole tribe in Florida gambling on Indian Reservations has exploded into a several billion dollar industry
The other research questions to be answered are: 2.) Have per capita tribal payments caused a decline in educational attainment by recipients? 3.) Have per capita payments caused an increase in fertility among recipients?
The Keweenaw Bay Indian Community has had a casino in operation for as long as Saginaw Chippewa Tribe but does not pay a per capita payment to members
Summary
From its modest beginnings in bingo halls among the Seminole tribe in Florida gambling on Indian Reservations has exploded into a several billion dollar industry. The Keweenaw Bay Indian Community operates two casinos: the Ojibwa Casino Resort in Baraga, Michigan in a remote area of the Upper Peninsula and the Ojibwa II near the city of Marquette in the Upper Peninsula Neither of these casinos generates as much revenue as the Soaring Eagle Casino. The location of this tribe is not as remote as the Keweenaw Bay Indian Community. The Keweenaw Bay Indian Community has had a casino in operation for as long as Saginaw Chippewa Tribe but does not pay a per capita payment to members. 2012, Vol 2, No 2 period under study and has a similar location to the Saginaw tribe in terms of non-casino employment opportunities
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