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SSI, Labor Supply, and Migration

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  • David Neumark

    ()
    (Department of Economics, University of California-Irvine)

  • Elizabeth T. Powers

    ()
    (Institute of Government and Public Affairs and Department of Economics, University of Illinois)

Abstract

The Supplemental Security Income (SSI) program in the United States creates incentives for potential aged recipients to reduce labor supply prior to becoming eligible, and past research finds evidence of such behavior for older men. There may be a migration response to across-state variation in SSI benefits, which is of interest in its own right and can bias estimates of the effects of SSI benefits on labor supply. We fail to find evidence that older individuals migrate in response to SSI benefits, or that the labor supply disincentive effects of SSI are spurious and instead reflect migration behavior.

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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 050628.

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Length: 41 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:irv:wpaper:050628

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Keywords: Supplemental Security Income; Migration; Labor supply;

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References

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  1. Powers, Elizabeth T. & Neumark, David, 2005. "The Supplemental Security Income Program and Incentives to Claim Social Security Retirement Early," National Tax Journal, National Tax Association, vol. 58(1), pages 5-26, March.
  2. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
  3. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer, Springer, vol. 12(3), pages 391-409.
  4. David Neumark & Elizabeth T. Powers, 2003. "The Effects of Changes in State SSI Supplements on Pre-Retirement Labor Supply," NBER Working Papers 9851, National Bureau of Economic Research, Inc.
  5. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(1), pages 1-61, March.
  6. David Neumark & Elizabeth Powers, 1998. "Welfare for the Elderly: The Effects of SSI on Pre-Retirement Labor Supply," NBER Working Papers 6805, National Bureau of Economic Research, Inc.
  7. David Neumark & Elizabeth Powers, 1997. "The Effect of Means-Tested Income Support for the Elderly on Pre-Retirement Saving: Evidence from the SSI Program in the U.S," NBER Working Papers 6303, National Bureau of Economic Research, Inc.
  8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 119(1), pages 249-275, February.
  9. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  10. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 29, Board of Governors of the Federal Reserve System (U.S.).
  11. Jonah B. Gelbach, 2004. "Migration, the Life Cycle, and State Benefits: How Low Is the Bottom?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 112(5), pages 1091-1130, October.
  12. Figlio, David N. & Kolpin, Van W. & Reid, William E., 1999. "Do States Play Welfare Games?," Journal of Urban Economics, Elsevier, vol. 46(3), pages 437-454, November.
  13. Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 66(2), pages 505-525, January.
  14. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages 529-54, July.
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Cited by:
  1. David Neumark & Joanne Song, 2011. "Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?," NBER Working Papers 17467, National Bureau of Economic Research, Inc.

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