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Welfare Payments and Work Incentive: Some Determinants of the Rates of General Assistance Payments

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  • Hirschel Kasper

Abstract

Recently the subject of the relation between the level of welfare payments and the number of people receiving welfare has attracted renewed interest. This paper presents an analysis of the determinants of the proportion of people receiving one form of public assistance, General Assistance Payments. We develop a model which is somewhat more complete than those of earlier studies by including more appropriate measures of the economic forces which affect the likelihood of people receiving GAP. Our results suggest that labor market conditions, particularly the unemployment rate during the recent past, is the most consistent explanation of variations in the rate of assistance. The level of the payments themselves seem to play a distinctly secondary role. These conclusions hold for both the numbers of families and individuals on General Assistance. In addition, we show that the recent controversy regarding the effect of the level of GAP on the demand for assistance is likely to be a matter of model specification rather than matters of definition or theory.

Suggested Citation

  • Hirschel Kasper, 1968. "Welfare Payments and Work Incentive: Some Determinants of the Rates of General Assistance Payments," Journal of Human Resources, University of Wisconsin Press, vol. 3(1), pages 86-110.
    • Handle: RePEc:uwp:jhriss:v:3:y:1968:i:1:p:86-110
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    Cited by:

    1. K. A. Kost, "undated". ""A man without a job is a dead man": The meaning of work and welfare in the lives of young men," Institute for Research on Poverty Discussion Papers 1112-96, University of Wisconsin Institute for Research on Poverty.
    2. Bieker, Richard F., 1979. "Forecasting Aid To Families With Dependent Children Caseloads And Payments In Delaware," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-4, April.
    3. Lowell Gallaway & Daniel G. Garrett, 2016. "The Unintended Consequences of the War on Poverty," Cato Journal, Cato Journal, Cato Institute, vol. 36(1), pages 33-45, Winter.
    4. Bieker, Richard F., 1979. "Forecasting Aid To Families With Dependent Children Caseloads And Payments In Delaware," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 8(1), pages 1-4, April.
    5. J P Jones III & J E Kodras, 1986. "The Policy Context of the Welfare Debate," Environment and Planning A, , vol. 18(1), pages 63-72, January.

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