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Does state AFDC generosity affect child SSI participation?

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Author Info

  • Bowen Garrett

    (Health Policy Center of the Urban Institute.)

  • Sherry Glied

    (Division of Health Policy and Management, Joseph L. Mailman School of Public Health at Columbia University.)

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    Abstract

    This article examines the extent of interactions or spillovers between the Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC) programs for children. In the early 1990s, the Social Security Administration substantially relaxed child eligibility criteria for SSI benefits. Since the changes, the number of U.S. children receiving cash and medical benefits through SSI tripled to nearly 1 million. The article describes a family's decision to participate in SSI and|or AFDC, and uses state-level data for three years before, and three years after, the Zebley decision to estimate the effect of state program generosity on child program participation. The expansions in child SSI eligibility increased child SSI participation and contributed to increased total program participation by children in the early 1990s. Child SSI participation increased more in states with lower AFDC payments and higher state SSI supplementation payments. These results suggest that families use SSI and AFDC as substitutes. At least 32 percent of the Zebley increase in SSI is likely attributable to the SSI-AFDC benefit gap for the median AFDC benefit state. © 2000 by the Association for Public Policy and Management.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

    Volume (Year): 19 (2000)
    Issue (Month): 2 ()
    Pages: 275-295

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    Handle: RePEc:wly:jpamgt:v:19:y:2000:i:2:p:275-295

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    Web page: http://www3.interscience.wiley.com/journal/34787/home

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    References

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    1. David M. Cutler & Jonathan Gruber, 1995. "Does Public Insurance Crowd Out Private Insurance?," NBER Working Papers 5082, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:
    1. Dahlia K. Remler & Jason E. Rachlin & Sherry A. Glied, 2001. "What can the take-up of other programs teach us about how to improve take-up of health insurance programs?," NBER Working Papers 8185, National Bureau of Economic Research, Inc.
    2. Borghans, Lex & Gielen, Anne C. & Luttmer, Erzo F.P., 2010. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," IZA Discussion Papers 5412, Institute for the Study of Labor (IZA).
    3. Lucie Schmidt, 2013. "The New Safety Net? Supplemental Security Income after Welfare Reform," Department of Economics Working Papers 2013-07, Department of Economics, Williams College.
    4. Elizabeth T. Powers & David Neumark, 2003. "The Supplemental Security Income Program and Incentives to Claim Social Security Retirement Early: Empirical Evidence from Matched SIPP and Social Security Administrative Files," Working Papers wp036, University of Michigan, Michigan Retirement Research Center.
    5. Stefan Staubli, 2009. "Tightening the purse strings: the effect of stricter DI eligibility criteria on labor supply," IEW - Working Papers 458, Institute for Empirical Research in Economics - University of Zurich.
    6. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
    7. Slack, Kristen Shook & Magnuson, Katherine A. & Berger, Lawrence M. & Yoo, Joan & Coley, Rebekah Levine & Dunifon, Rachel & Dworsky, Amy & Kalil, Ariel & Knab, Jean & Lohman, Brenda J. & Osborne, Cynt, 2007. "Family economic well-being following the 1996 welfare reform: Trend data from five non-experimental panel studies," Children and Youth Services Review, Elsevier, vol. 29(6), pages 698-720, June.
    8. Nancy E. Reichman & Hope Corman & Kelly Noonan, 2004. "Effects of Child Health on Sources of Public Support," NBER Working Papers 10762, National Bureau of Economic Research, Inc.
    9. Mark Duggan & Melissa Schettini Kearney, 2005. "The Impact of Child SSI Enrollment on Household Outcomes: Evidence from the Survey of Income and Program Participation," NBER Working Papers 11568, National Bureau of Economic Research, Inc.
    10. Hungerman, Daniel M., 2009. "Crowd-out and diversity," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 729-740, June.
    11. Mark G. Duggan & Melissa Schettini Kearney, 2007. "The impact of child SSI enrollment on household outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(4), pages 861-886.
    12. Mark Duggan & Perry Singleton & Jae Song, 2005. "Aching to Retire? The Rise in the Full Retirement Age and its Impact on the Disability Rolls," NBER Working Papers 11811, National Bureau of Economic Research, Inc.
    13. Purtell, Kelly M. & Gershoff, Elizabeth T. & Aber, J. Lawrence, 2012. "Low income families' utilization of the Federal “Safety Net”: Individual and state-level predictors of TANF and Food Stamp receipt," Children and Youth Services Review, Elsevier, vol. 34(4), pages 713-724.
    14. Marcia K. Meyers & Janet C. Gornick & Laura R. Peck, 2001. "Packaging Support for Low-Income Families: Policy Variation across the United States," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(3), pages 457-483.
    15. Elizabeth Powers & David Neumark, 2001. "The Supplemental Security Income Program and Incentives to Take Up Social Security Early Retirement: Empirical Evidence from Matched SIPP and Social.," NBER Working Papers 8670, National Bureau of Economic Research, Inc.
    16. Lynn A. Karoly & Paul S. Davies, 2004. "The Impact of the 1996 SSI Childhood Disability Reforms: Evidence from Matched SIPP-SSA Data," Working Papers wp079, University of Michigan, Michigan Retirement Research Center.

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