Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration
I test for welfare-induced migration by comparing AFDC participation in border counties to interior counties within states. If migration costs are lower for border-county residents, border counties on the high-benefit side of a state border should have higher welfare participation relative to interior counties of the same state. Border counties on the low-benefit side should have lower welfare participation relative to interior counties of the same state. The results obtained using county-level data from 1970–90 indicate that having a neighbor with benefits that are $100 lower increases AFDC expenditures in border counties by 4.0–6.8 percent relative to interior counties.
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- Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
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- J. R. Walker, . "Migration amoung low-income households: Helping the witch doctors reach consensus," Institute for Research on Poverty Discussion Papers 1031-94, University of Wisconsin Institute for Research on Poverty.
- James P. Ziliak & David N. Figlio & Elizabeth E. Davis & Laura S. Connolly, 2000. "Accounting for the Decline in AFDC Caseloads: Welfare Reform or the Economy?," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 570-586.
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