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

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Author Info
James P. Ziliak
David N. Figlio

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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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Publisher 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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  1. 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. [Downloadable!]
  2. Timothy J. Bartik & Randall W. Eberts, 1999. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Staff Working Papers 99-54, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
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  3. Figlio, David N & Gundersen, Craig & Ziliak, James P, 2000. " The Effects of the Macroeconomy and Welfare Reform on Food Stamp Caseloads," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(3), pages 635-41, August. [Downloadable!] (restricted)
  4. 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.
  5. Rebecca M. Blank, 1997. "What Causes Public Assistance Caseloads to Grow?," NBER Working Papers 6343, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
  7. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Saxonhouse, Gary R, 1976. "Estimated Parameters as Dependent Variables," American Economic Review, American Economic Association, vol. 66(1), pages 178-83, March. [Downloadable!] (restricted)
  10. Jonathan Gruber, 1996. "Cash Welfare as a Consumption Smoothing Mechanism for Single Mothers," NBER Working Papers 5738, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. 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.
  12. 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.
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