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AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions vs. Caseload Shifting

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Abstract

Welfare reform has made receipt of cash benefits more difficult and less attractive for single mothers. We examine whether reforms of AFDC affected caseloads of another program - Supplemental Security Income (SSI). We exploit state variation in welfare reform over time, and find that female-headed households in states aggressively pursuing welfare reform were 21.6 percent more likely to receive SSI. This implies that a decrease in caseloads in one program cannot be interpreted as an equal-sized decrease in the number of families receiving public assistance. In addition, our results have policy implications for the well-being of families affected by welfare reform time limits.

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File URL: http://web.williams.edu/Economics/wp/schmidtssimay2002.pdf
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Bibliographic Info

Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2002-03.

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Length: 25 pages
Date of creation: Dec 2000
Date of revision:
Publication status: published in Journal of Human Resources 39(3): 792-812.
Handle: RePEc:wil:wileco:2002-03

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Cited by:
  1. 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.
  2. 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.
  3. Lukas Inderbitzin & Stefan Staubli & Josef Zweimüller, 2013. "Extended unemployment benefits and early retirement: program complementarity and program substitution," ECON - Working Papers 119, Department of Economics - University of Zurich.
  4. Mazzolari, Francesca & Ragusa, Giuseppe, 2012. "Time Limits: The Effects on Welfare Use and Other Consumption-Smoothing Mechanisms," IZA Discussion Papers 6993, Institute for the Study of Labor (IZA).
  5. 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.
  6. Pinka Chatterji & Ellen Meara, 2007. "Consequences of Eliminating Federal Disability Benefits for Substance Abusers," NBER Working Papers 13407, National Bureau of Economic Research, Inc.
  7. 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.
  8. 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).
  9. 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.

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