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Geographic Differences in AFDC and Food Stamp Caseloads in the Welfare Reform Era

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  • James P. Ziliak
  • David N. Figlio

Abstract

The substantial economic expansion of the 1990s, coupled with the dramatic changes in the delivery of cash assistance in America, may have had differential impacts on welfare caseloads across geographic areas because of spatial differences in the composition of labor-market skills and welfare caseloads. We examine urban and rural differences in the impact of the macroeconomy and welfare reform on AFDC/TANF and Food Stamp caseloads using county level data from the states of Oregon and Wisconsin for 1990-1999. These states are credited with being early major innovators in the area of welfare reform, so it is of great interest to examine whether the business cycle and welfare reform have had a different geographic impact in these states. With the exception of Oregon's food stamp caseload, we find no statistically significant urban and rural differences in the long-run impact of the macroeconomy. However, we do find important geographic differences in the impacts of welfare reform on AFDC/TANF and food stamp caseloads across both states-the 1996 federal welfare reform legislation resulted in a more pronounced leveling down of urban caseloads relative to rural caseloads.

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Bibliographic Info

Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 180.

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Date of creation: 05 Jun 2000
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Handle: RePEc:wop:jopovw:180

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Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637
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Web page: http://www.jcpr.org/wp/ByDate.html
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References

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  1. Michael Wiseman, 1996. "State strategies for welfare reform: The Wisconsin story," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(4), pages 515-546.
  2. Rebecca M. Blank, 2000. "What Causes Public Assistance Caseloads to Grow?," JCPR Working Papers 18, Northwestern University/University of Chicago Joint Center for Poverty Research.
  3. J. P. Ziliak & D. N. Figlio & E. E. Davis & L. S. Connolly, . "Accounting for the Decline in AFDC Caseloads: Welfare Reform or Economic Growth?," Institute for Research on Poverty Discussion Papers 1151-97, University of Wisconsin Institute for Research on Poverty.
  4. Timothy J. Bartik & Randall W. Eberts, 199. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Book chapters authored by Upjohn Institute researchers, in: Sheldon H. Danziger (ed.), Economic Conditions and Welfare Reform, chapter 5, pages 119-157 W.E. Upjohn Institute for Employment Research.
  5. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  6. Jonathan Gruber, 1996. "Cash Welfare as a Consumption Smoothing Mechanism for Single Mothers," NBER Working Papers 5738, National Bureau of Economic Research, Inc.
  7. David N. Figlio & Craig Gundersen & James P. Ziliak, 2000. "The Effects of the Macroeconomy and Welfare Reform on Food Stamp Caseloads," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 635-641.
  8. J. P. Ziliak & C. Gundersen & D. N. Figlio, . "Welfare Reform and Food Stamp Caseload Dynamics," Institute for Research on Poverty Discussion Papers 1215-00, University of Wisconsin Institute for Research on Poverty.
  9. Harry J. Holzer & Michael A. Stoll, 2000. "Employer Demand for Welfare Recipients By Race," JCPR Working Papers 197, Northwestern University/University of Chicago Joint Center for Poverty Research.
  10. James P. Ziliak & David N. Figlio & Elizabeth E. Davis & Laura S. Connolly, 2000. "Accounting for the Decline in AFDC Caseloads: Welfare Reform or the Economy?," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 570-586.
  11. David N. Figlio & James P. Ziliak, 1999. "Welfare Reform, the Business Cycle, and the Decline in AFDC Caseloads," JCPR Working Papers 77, Northwestern University/University of Chicago Joint Center for Poverty Research.
  12. Saxonhouse, Gary R, 1976. "Estimated Parameters as Dependent Variables," American Economic Review, American Economic Association, vol. 66(1), pages 178-83, March.
  13. James P. Ziliak & Beth A. Wilson & Joe A. Stone, 1999. "Spatial Dynamics And Heterogeneity In The Cyclicality Of Real Wages," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 227-236, May.
  14. Rebecca M. Blank, 1999. "What Goes Up Must Come Down? Explaining Recent Changes in Public Assistance Caseloads," JCPR Working Papers 78, Northwestern University/University of Chicago Joint Center for Poverty Research.
  15. Robert A. Moffitt, 1999. "The Effect of Pre-PRWORA Waivers on AFDC Caseloads and Female Earnings, Income, and Labor Force Behavior," JCPR Working Papers 89, Northwestern University/University of Chicago Joint Center for Poverty Research.
  16. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
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Cited by:
  1. Mills, Bradford F., 2002. "Changes In The Well-Being Of Nonmetropolitan Single-Mother Families: A Semi-Parametric Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.

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