Reassessing the "Race to the bottom" in state welfare policy

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dc.contributor.authorBerry, WD
dc.contributor.authorFording, RC
dc.contributor.authorHanson, RL
dc.contributor.otherState University System of Florida
dc.contributor.otherFlorida State University
dc.contributor.otherUniversity of Kentucky
dc.contributor.otherIndiana University System
dc.contributor.otherIndiana University Bloomington
dc.contributor.otherUniversity of Alabama Tuscaloosa
dc.date.accessioned2021-05-24T20:09:48Z
dc.date.available2021-05-24T20:09:48Z
dc.date.issued2003
dc.description.abstractOn the assumption that poor people migrate to obtain better welfare benefits, the magnet hypothesi. predicts that a state's poverty rate increases when its welfare benefit rises faster than benefits in surrounding states. The benefit competition hypothesis proposes that states lower welfare benefits to avoid attracting the poor from neighboring states. Previous investigations, which yield support for these propositions. suffer from weaknesses in model specification and methodology. We correct these deficiencies in a simultaneous equation model including a state's poverty rate and its benefit level for AFDC (Aid to Families with Dependent Children) as endogenous variables. We estimate the model using pooled annual data for the American states from 1960 to 1990 and find that a state's poverty rate does not jump significantly when its welfare payments outpace benefits in neighboring states. Further-more, there is no evidence of vigorous benefit competition among states states respond to decreases in neighboring states' welfare benefits with only small adjustments in their own.en_US
dc.format.mimetypeapplication/pdf
dc.identifier.citationBerry, W., Fording, R., Hanson, R. (2003): Reassessing the “Race to the Bottom” in State Welfare Policy. The Journal of Politics, 65(2).
dc.identifier.doi10.1111/1468-2508.t01-2-00003
dc.identifier.urihttp://ir.ua.edu/handle/123456789/7734
dc.languageEnglish
dc.language.isoen_US
dc.publisherBlackwell
dc.subjectAMERICAN-STATES
dc.subjectUNITED-STATES
dc.subjectINCOME-REDISTRIBUTION
dc.subjectCOMPETITION
dc.subjectGOVERNMENT
dc.subjectMIGRATION
dc.subjectMODEL
dc.subjectPolitical Science
dc.subjectGovernment & Law
dc.subject.lcshPublic welfare
dc.subject.lcshPublic welfare administration
dc.titleReassessing the "Race to the bottom" in state welfare policyen_US
dc.typetext
dc.typeArticle
dc.typeProceedings Paper

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