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AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions vs. Caseload Shifting

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Abstract

Welfare reform has made receipt of cash benefits more difficult and less attractive for single mothers. We examine whether reforms of AFDC affected caseloads of another program - Supplemental Security Income (SSI). We exploit state variation in welfare reform over time, and find that female-headed households in states aggressively pursuing welfare reform were 21.6 percent more likely to receive SSI. This implies that a decrease in caseloads in one program cannot be interpreted as an equal-sized decrease in the number of families receiving public assistance. In addition, our results have policy implications for the well-being of families affected by welfare reform time limits.

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  • Lucie Schmidt & Purvi Sevak, 2000. "AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions vs. Caseload Shifting," Department of Economics Working Papers 2002-03, Department of Economics, Williams College.
  • Handle: RePEc:wil:wileco:2002-03
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    1. Cheshire, Paul & Sheppard, Stephen, 1998. "Estimating the Demand for Housing, Land, and Neighbourhood Characteristics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 357-382, August.
    2. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, vol. 62(246), pages 247-267, May.
    3. Paul Cheshire & Stephen Sheppard, 1997. "Welfare Economics of Land Use Regulation," Urban/Regional 9702001, EconWPA.
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    Cited by:

    1. Lukas Inderbitzin & Stefan Staubli & Josef Zweimüller, 2016. "Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution," American Economic Journal: Economic Policy, American Economic Association, pages 253-288.
    2. Cancian, Maria & Han, Eunhee & Noyes, Jennifer L., 2014. "From multiple program participation to disconnection: Changing trajectories of TANF and SNAP beneficiaries in Wisconsin," Children and Youth Services Review, Elsevier, vol. 42(C), pages 91-102.
    3. Stefan Staubli, 2009. "Tightening the purse strings: the effect of stricter DI eligibility criteria on labor supply," IEW - Working Papers 458, Institute for Empirical Research in Economics - University of Zurich.
    4. Chatterji, Pinka & Meara, Ellen, 2010. "Consequences of eliminating federal disability benefits for substance abusers," Journal of Health Economics, Elsevier, vol. 29(2), pages 226-240, March.
    5. Lex Borghans & Anne C. Gielen & Erzo F. P. Luttmer, 2014. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 34-70, November.
    6. Slack, Kristen Shook & Magnuson, Katherine A. & Berger, Lawrence M. & Yoo, Joan & Coley, Rebekah Levine & Dunifon, Rachel & Dworsky, Amy & Kalil, Ariel & Knab, Jean & Lohman, Brenda J. & Osborne, Cynt, 2007. "Family economic well-being following the 1996 welfare reform: Trend data from five non-experimental panel studies," Children and Youth Services Review, Elsevier, vol. 29(6), pages 698-720, June.
    7. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income (SSI) Program," NBER Working Papers 21209, National Bureau of Economic Research, Inc.
    8. Austin Nichols & Lucie Schmidt & Purvi Sevak, 2014. "Economic Conditions and SSI Applications," Working Papers wp318, University of Michigan, Michigan Retirement Research Center.
    9. Lynn A. Karoly & Paul S. Davies, 2004. "The Impact of the 1996 SSI Childhood Disability Reforms: Evidence from Matched SIPP-SSA Data," Working Papers wp079, University of Michigan, Michigan Retirement Research Center.
    10. Nancy E. Reichman & Hope Corman & Kelly Noonan, 2004. "Effects of Child Health on Sources of Public Support," NBER Working Papers 10762, National Bureau of Economic Research, Inc.
    11. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Norwegian School of Economics, Department of Economics.
    12. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income Program," NBER Chapters,in: Economics of Means-Tested Transfer Programs in the United States, volume 2, pages 1-58 National Bureau of Economic Research, Inc.
    13. Mazzolari, Francesca & Ragusa, Giuseppe, 2012. "Time Limits: The Effects on Welfare Use and Other Consumption-Smoothing Mechanisms," IZA Discussion Papers 6993, Institute for the Study of Labor (IZA).
    14. Lucie Schmidt, 2013. "The New Safety Net? Supplemental Security Income after Welfare Reform," Department of Economics Working Papers 2013-07, Department of Economics, Williams College.
    15. Mark Duggan & Perry Singleton & Jae Song, 2005. "Aching to Retire? The Rise in the Full Retirement Age and its Impact on the Disability Rolls," NBER Working Papers 11811, National Bureau of Economic Research, Inc.
    16. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.

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