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The Welfare Magnate Debate Revisited in the Context of Welfare Reform

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  • Traci Mach
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    This paper re-examines the welfare magnet hypothesis in the context of welfare reform by redefining both migration and generosity. Due to the intrastate variation in program parameters, migration is defined at the county, rather than state level, and the typical definition of generosity is expanded to control for differences in time limits. Using data from the National Longitudinal Survey of Youth 1979 cohort (NLSY79), results indicate that time limits do play a significant role in cross-county migration decisions, although the effect is small and greatly diminished when the individual must travel at least 100 miles to avoid the time limit. Estimates also provide some evidence that benefit differentials also positively influence decisions.

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    Paper provided by University at Albany, SUNY, Department of Economics in its series Discussion Papers with number 00-07.

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    Date of creation: 2000
    Handle: RePEc:nya:albaec:00-07
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    Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.

    Phone: (518) 442-4735
    Fax: (518) 442-4736

    Order Information: Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
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