Article ID Journal Published Year Pages File Type
5052815 Economic Analysis and Policy 2011 19 Pages PDF
Abstract

:Researchers have analyzed whether US welfare reform has induced interstate migration. Empirical results are inconclusive because methodologies are based on pre-reform thinking. This paper presents a post-reform migration model. We find that recipients move to avoid harsh sanction policies, seek lenient work requirements, and extend time limits. Unlike the first two behavioral responses, the latter is controversial. Critics will argue that such moves are illegal, and violators can be prosecuted because states share data. However, only active cases are being shared, meaning violators cannot be caught. Our model produces testable hypotheses which are consistent with (and reconcile) previous empirical results.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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