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Demographic Change and Public Assistance Expenditures

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  • Robert A. Moffitt

Abstract

Growth in overall real welfare expenditures per capita has been a noted trend in the last thirty years in the U.S. The influence of demographic forces in contributing to this growth is considered in this paper. It is found that the growth of female-headed families is the strongest and dominant force in contributing to trends in real AFDC expenditures per capita over the long run. The influence of demographic growth is especially strong for the black population. For the Food Stamp and Medicaid programs, increases in participation rates, on the other hand, have been more important. Projections of future trends in the age, race, and sex composition of the U.S. population show that expenditures in none of these programs is likely to respond to such basic demographic trends, however.

Suggested Citation

  • Robert A. Moffitt, 1999. "Demographic Change and Public Assistance Expenditures," NBER Working Papers 6995, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6995
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    References listed on IDEAS

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    1. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-1035, December.
    2. Moffitt, Robert & Ribar, David & Wilhelm, Mark, 1998. "The decline of welfare benefits in the U.S.: the role of wage inequality," Journal of Public Economics, Elsevier, vol. 68(3), pages 421-452, June.
    3. Hilary Williamson Hoynes, 1996. "Work, Welfare, and Family Structure: What Have We Learned?," NBER Working Papers 5644, National Bureau of Economic Research, Inc.
    4. Jonathan Gruber, 1997. "Policy Watch: Medicaid and Uninsured Women and Children," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 199-208, Fall.
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    Cited by:

    1. Pankaj C. Patel & Cornelius A. Rietveld & Jack I. Richter, 2022. "The relation between public assistance and self-employment in census tracts: a long-term perspective," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 891-927, July.
    2. Robert Moffitt, 1999. "Explaining Welfare Reform: Public Choice and the Labor Market," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 289-315, August.
    3. Pablo D. López Zadicoff & Jorge A. Paz, 2003. "El Programa Jefes de Hogar. Eligibilidad, participación y trabajo," CEMA Working Papers: Serie Documentos de Trabajo. 242, Universidad del CEMA.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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