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AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions versus Caseload Shifting

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  • Lucie Schmidt
  • Purvi Sevak

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 femaleheaded 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.

Suggested Citation

  • Lucie Schmidt & Purvi Sevak, 2004. "AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions versus Caseload Shifting," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:3:p792-812
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    References listed on IDEAS

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    1. Bowen Garrett & Sherry Glied, 2000. "Does state AFDC generosity affect child SSI participation?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 275-295.
    2. repec:mes:challe:v:40:y:1997:i:6:p:6-20 is not listed on IDEAS
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    Cited by:

    1. Chatterji, Pinka & Meara, Ellen, 2010. "Consequences of eliminating federal disability benefits for substance abusers," Journal of Health Economics, Elsevier, vol. 29(2), pages 226-240, March.
    2. Regis Barnichon & Andrew Figura, 2016. "Declining Desire to Work and Downward Trends in Unemployment and Participation," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 449-494.
    3. Lukas Inderbitzin & Stefan Staubli & Josef Zweimüller, 2016. "Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 253-288, February.
    4. Stefan Staubli, 2009. "Tightening the Purse Strings: The Effect of Stricter DI Eligibility Criteria on Labor Supply," NRN working papers 2009-30, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    5. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income (SSI) Program," NBER Working Papers 21209, National Bureau of Economic Research, Inc.
    6. 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.
    7. James P. Ziliak, 2015. "Recent developments in antipoverty policies in the United States," Chapters,in: Social Policies in an Age of Austerity, chapter 9, pages 235-262 Edward Elgar Publishing.
    8. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
    9. Cancian, Maria & Han, Eunhee & Noyes, Jennifer L., 2014. "From multiple program participation to disconnection: Changing trajectories of TANF and SNAP beneficiaries in Wisconsin," Children and Youth Services Review, Elsevier, vol. 42(C), pages 91-102.
    10. repec:eee:pubeco:v:149:y:2017:i:c:p:20-34 is not listed on IDEAS
    11. Narain, Kimberly & Bitler, Marianne & Ponce, Ninez & Kominski, Gerald & Ettner, Susan, 2017. "The impact of welfare reform on the health insurance coverage, utilization and health of low education single mothers," Social Science & Medicine, Elsevier, vol. 180(C), pages 28-35.
    12. Gijs Roelofs & Daniel Vuuren, 2017. "The Decentralization of Social Assistance and the Rise of Disability Insurance Enrolment," De Economist, Springer, vol. 165(1), pages 1-21, March.
    13. Hartley, Robert Paul & Lamarche, Carlos & Ziliak, James P., 2017. "Welfare Reform and the Intergenerational Transmission of Dependence," IZA Discussion Papers 10942, Institute for the Study of Labor (IZA).
    14. Slack, Kristen Shook & Magnuson, Katherine A. & Berger, Lawrence M. & Yoo, Joan & Coley, Rebekah Levine & Dunifon, Rachel & Dworsky, Amy & Kalil, Ariel & Knab, Jean & Lohman, Brenda J. & Osborne, Cynt, 2007. "Family economic well-being following the 1996 welfare reform: Trend data from five non-experimental panel studies," Children and Youth Services Review, Elsevier, vol. 29(6), pages 698-720, June.
    15. Hungerman, Daniel M., 2009. "Crowd-out and diversity," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 729-740, June.
    16. Austin Nichols & Lucie Schmidt & Purvi Sevak, 2014. "Economic Conditions and SSI Applications," Working Papers wp318, University of Michigan, Michigan Retirement Research Center.
    17. 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.
    18. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Norwegian School of Economics, Department of Economics.
    19. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income Program," NBER Chapters,in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 1-58 National Bureau of Economic Research, Inc.
    20. 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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