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Migration and Income Redistribution Responsibilities

  • Edward M. Gramlich
  • Deborah S. Laren

The importance of migration of AFDC beneficiaries as a determinant of state benefit levels is examined in this paper. A pooled cross-section time-series model fit to state data over the seventies indicates that benefit levels in other states have a positive influence on own-state benefits and a negative influence on recipients. This evidence is supported by that from a transition matrix, which shows that while very few AFDC households make an interstate move in a year, when they do move they are much more likely to go to a high-benefit state than to a low-benefit state. Both pieces of evidence argue for more centralization of income redistribution responsibilities in the United States.

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File URL: http://www.jstor.org/stable/pdfplus/145944
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 19 (1984)
Issue (Month): 4 ()
Pages: 489-511

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Handle: RePEc:uwp:jhriss:v:19:y:1984:i:4:p:489-511
Contact details of provider: Web page: http://jhr.uwpress.org/

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