Research by Author & Topic

Publications by Sheila R. Zedlewski on Economy

This brief, part of the Urban Institute's "Recession and Recover" series, examines how the TANF program (formerly AFDC) responds during a recession and how that response may differ in the current recession from its response in the past.

Americans save for retirement by building wealth in personal accounts, home equity, pension plans, retirement accounts and Social Security. We use data from the Survey of Consumer Finances (SCF) and methods to estimate the wealth values of Social Security and pension plans to show how wealth builds over the life cycle. We find that the typical household accrues wealth throughout the life cycle. Households in the bottom income quintile, those that did not complete high school and minorities accumulate much less wealth than their counterparts, and Social Security accounts for a large share of their preretirement wealth.

The slumping stock market, falling housing prices, and weakening economy have serious repercussions for older Americans who are approaching retirement or already retired. Seniors have little time to recoup the values of their homes, 401(k) plans, and individual retirement accounts-all important parts of their retirement nest eggs. More and more older adults are working to bolster their retirement incomes, but the rising unemployment rate limits their prospects. This fact sheet examines the impact of the ongoing economic turmoil on retirement savings, home values, and retirement decisions.

Retirees who want to stay in their homes can tap into home equity through a reverse annuity mortgage that pays them a tax-free monthly payment. We show that conversion of home equity into a reliable income stream could provide a significant boost in retirement income, particularly for low-income homeowners with significant equity. The cost of initiating a RAM, however, and many older adults' concerns about borrowing against this asset have limited interest in RAMs. Recent turmoil in the mortgage market and declines in home prices raise additional uncertainties about the potential for using home equity to boost retirement incomes.

Tax rates can affect decisions regarding work, investment in human capital, and wealth accumulation, each of which modulates intra- and intergenerational economic mobility. Similarly, government spending affects mobility either by purchasing goods that may drive mobility, such as education and health, or by effectively lowering the cost of mobility-enhancing goods through tax deductions and credits. This review summarizes the literature on the effects of government tax and spending policy on economic mobility, with a focus on the impacts of changes in marginal tax rates, the tax treatment of wealth, and government spending on health care, education, and Social Security. (Review 10 of 11.)

Federal and state spending on work supports for low-income families grew between 2002 and 2005, with Medicaid accounting for most of the spending growth. After 2002 states spent less on child care, and federal EITC spending declined slightly as the number of employed parents decreased. Yet, food stamp spending increased as family incomes declined and program changes expanded eligibility and participation. The weaker economy also explained a large share of the increase in Medicaid spending. Differences in the design of programs and needs among families led to wide variation in the amount of support received by families across states.

The Food Stamp Program, a cornerstone of income security policy in the US since 1961, was designed to ensure that all Americans have enough to eat. Yet the program is falling farther and farther short of this mission. Many families are leaving the food stamp program even though many report difficulties paying for food and are eligible to receive benefits.

There are two Highlights for each state. The income support and social services Highlights look at basic income support programs, employment and training programs, child care, child support enforcement, and the last-resort safety net. The Highlights capture policies in place and planned in 1996 and early 1997.

This paper examines how a budget reconciliation bill under the Balanced Budget Act of 1995 would affect social welfare programs, taxes, and family income by using the Urban Institute's TRIM2 microsimulation model. Topics covered include (1) how current government programs assist families; (2) how the reconciliation bill would affect families; (3) the aggregate effects of changes in government spending and taxes; (4) effects on total family income; and (5) effects on poverty. The study does not consider the bill's proposed changes in government health programs nor does it include the effects of reductions in capital gains taxes.

This paper examines the issue of employer versus individual mandates, which is seen as a stumbling block to health care reform. It reviews the advantages and disadvantages of both approaches. Also reviewed is a compromise proposal that divides the mandate between employers and individuals. The current system for financing health care is compared with six alternative employer and individual mandate proposals. In their findings, the authors take into consideration several assumptions about required premium shares: incidence of employer contributions, subsidy schedules, employer maintenance, and tax treatment of health insurance contributions.