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)
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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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Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number
050628.
Find related papers by JEL classification: H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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