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AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions versus Caseload Shifting

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  • Lucie Schmidt
  • Purvi Sevak

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 femaleheaded 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.

Suggested Citation

  • Lucie Schmidt & Purvi Sevak, 2004. "AFDC, SSI, and Welfare Reform Aggressiveness: Caseload Reductions versus Caseload Shifting," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:3:p792-812
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    References listed on IDEAS

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    1. Rebecca M. Blank, 2001. "What Causes Public Assistance Caseloads to Grow?," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 85-118.
    2. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    3. Alberto Martini & Michael Wiseman, 1997. "Explaining the Recent Decline in Welfare Caseloads," Challenge, Taylor & Francis Journals, vol. 40(6), pages 6-20, November.
    4. Bowen Garrett & Sherry Glied, 2000. "Does state AFDC generosity affect child SSI participation?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 275-295.
    5. 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.
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