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Do welfare magnets attract?

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Author Info
R. L. Hanson
J. T. Hartman
Abstract

Some scholars and many policymakers claim that poor people, in order to improve their lot, move to states that offer high welfare benefits. The authors test the validity of this claim using data from six Current Population Surveys: 1982-1984 and 1986-1988. They find no evidence to support the so-called welfare magnet hypothesis. Poor people do not move from one state to another to receive more public assistance. In fact, the poor hardly move from their home state at all. True, low-income persons who move to states with generous welfare benefits are more likely to go on welfare than are poor people who move to low benefit states, but their numbers are too small to affect a state's welfare expenditures. The authors also find that low-income people who already live in high benefit states are no more likely than the poor who live in low benefit states to participate in welfare programs.

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Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1028-94.

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Handle: RePEc:wop:wispod:1028-94

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Barr, Nicholas A & Hall, Robert E, 1981. "The Probability of Dependence on Public Assistance," Economica, London School of Economics and Political Science, vol. 48(190), pages 109-23, May. [Downloadable!] (restricted)
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  2. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August. [Downloadable!] (restricted)
  3. Robins, Philip K, 1986. "Child Support, Welfare Dependency, and Poverty," American Economic Review, American Economic Association, vol. 76(4), pages 768-88, September. [Downloadable!] (restricted)
  4. Blank, Rebecca M., 1985. "The impact of state economic differentials on household welfare and labor force behavior," Journal of Public Economics, Elsevier, vol. 28(1), pages 25-58, October. [Downloadable!] (restricted)
  5. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September. [Downloadable!] (restricted)
  6. G. Acs, . "The impact of AFDC on young women's childbearing decisions," Institute for Research on Poverty Discussion Papers 1011-93, University of Wisconsin Institute for Research on Poverty.
  7. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
  8. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct. [Downloadable!] (restricted)
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  1. Pranab Bardhan & Dilip Mookherjee, 2002. "Relative Capture of Local and Central Governments: An Essay in the Political Economy of Decentralization," Center for International and Development Economics Research, Working Paper Series 1013, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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  2. Phillip B. Levine & David J. Zimmerman, 1995. "An Empirical Analysis of the Welfare Magnet Debate Using the NLSY," NBER Working Papers 5264, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall. [Downloadable!] (restricted)
  4. P. B. Levine & D. J. Zimmerman, . "An empirical analysis of the welfare magnet debate using the NLSY," Institute for Research on Poverty Discussion Papers 1098-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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This page was last updated on 2009-12-2.


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