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Macroeconomic Conditions, Institutional Factors And Demographic Structure: What Causes Welfare Caseloads?

  • Luis Ayala

    ()

    (Instituto de Estudios Fiscales)

  • César Pérez

    ()

    (Instituto de Estudios Fiscales)

Some of the possible determinants of the changes observed in the welfare caseloads have been analysed in this study. Our model attempts to explain variations in the welfare caseloads on the basis of four different factors: macroeconomic conditions, interactions with other income maintenance programmes, changes in the programme’s parameters and changes in the demographic structure. The model was tested by applying different time series techniques. The data employed is of an administrative nature and covered the whole period the Madrid programme has been in operation. The results show that institutional factors carry more weight than macroeconomic factors concerning changes in the welfare caseloads. The results warn against the standardisation of political decisions given that the effects vary considerably among the different demographic groups.

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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 2-03.

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Handle: RePEc:hpe:wpaper:y:2003:i:2
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  1. H. W. Hoynes, . "Local Labor Markets and Welfare Spells: Do Demand Conditions Matter?," Institute for Research on Poverty Discussion Papers 1104-96, University of Wisconsin Institute for Research on Poverty.
  2. Timothy J. Bartik & Randall W. Eberts, 1999. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Upjohn Working Papers and Journal Articles 99-54, W.E. Upjohn Institute for Employment Research.
  3. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
  4. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
  5. Anne E. Winkler, 1991. "The Incentive Effects of Medicaid on Women's Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 308-337.
  6. Jeffrey Grogger, 2004. "Time Limits and Welfare Use," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
  7. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-93, January.
  8. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
  9. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, vol. 63(1), pages 1-25, December.
  10. David N. Figlio & James P. Ziliak, 1999. "Welfare Reform, the Business Cycle, and the Decline in AFDC Caseloads," JCPR Working Papers 77, Northwestern University/University of Chicago Joint Center for Poverty Research.
  11. Shroder, Mark, 1995. "Games the States Don't Play: Welfare Benefits and the Theory of Fiscal Federalism," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 183-91, February.
  12. Bernard Fortin & Guy Lacroix & Jean-François Thibault, 1999. "The Interaction of UI and Welfare, and the Dynamics of Welfare Participation of Single Parents," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 115-132, November.
  13. Michael P. Keane, 1995. "A new idea for welfare reform," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 2-28.
  14. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  15. Strauss, Robert P., 1977. "Information and participation in a public transfer program," Journal of Public Economics, Elsevier, vol. 8(3), pages 385-396, December.
  16. Rebecca M. Blank, 1989. "The Effect of Medical Need and Medicaid on AFDC Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 54-87.
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