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A Stock-Flow Analysis of the Welfare Caseload

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  • Jacob Alex Klerman
  • Steven J. Haider

Abstract

This paper reconsiders the methods used in previous studies to assess the welfare caseload movements during the 1990s. We develop a model in which the welfare caseload is the net outcome of past flows onto and off of the caseload and show that such a stock-flow model can explain some of the anomalous findings in previous studies. We then estimate the stock-flow model using California administrative data. We find that approximately 50 percent of the caseload decline in California can be attributed to the declining unemployment rate. These estimates are more robust and larger than those obtained when applying more typical methods to the same California data.

Suggested Citation

  • Jacob Alex Klerman & Steven J. Haider, 2004. "A Stock-Flow Analysis of the Welfare Caseload," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:4:p865-886
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    References listed on IDEAS

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    1. Michael J. Boskin & Frederick C. Nold, 1975. "A Markov Model of Turnover in Aid to Families with Dependent Children," Journal of Human Resources, University of Wisconsin Press, vol. 10(4), pages 467-481.
    2. Rebecca M. Blank, 2001. "What Causes Public Assistance Caseloads to Grow?," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 85-118.
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