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Does means-testing welfare discourage saving? Evidence from the National Longitudinal Survey of Women

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  • Elizabeth T. Powers

Abstract

An empirical test of AFDC's asset limit, finding that after correcting for the potential endogeneity of policy, a $1 difference in limits implies a difference in potential AFDC recipients' wealth of 30 cents. ; This paper uses a stochastic cost frontier to examine the scale economies, cost efficiencies, and technological change of three payments instruments--check, automated clearinghouse (ACH) transfers, and Fedwire processing--provided by the Federal Reserve over the period 1990-94.

Suggested Citation

  • Elizabeth T. Powers, 1995. "Does means-testing welfare discourage saving? Evidence from the National Longitudinal Survey of Women," Working Papers (Old Series) 9519, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9519
    DOI: 10.26509/frbc-wp-199519
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    References listed on IDEAS

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    1. Jonathan S. Skinner, 1996. "Is Housing Wealth a Sideshow?," NBER Chapters, in: Advances in the Economics of Aging, pages 241-272, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    2. Hubbard, R Glenn & Skinner, Jonathan & Zeldes, Stephen P, 1995. "Precautionary Saving and Social Insurance," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 360-399, April.
    3. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
    4. Jonathan Gruber, 1999. "The Wealth of the Unemployed: Adequacy and Implications for Unemployment Insurance," NBER Working Papers 7348, National Bureau of Economic Research, Inc.
    5. Gruber, Jonathan, 2000. "Cash welfare as a consumption smoothing mechanism for divorced mothers," Journal of Public Economics, Elsevier, vol. 75(2), pages 157-182, February.
    6. David Neumark & Elizabeth T. Powers, 1996. "Consequences of means testing Social Security: evidence from the SSI program," Working Papers (Old Series) 9618, Federal Reserve Bank of Cleveland.

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    Keywords

    Saving and investment; Welfare;

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