Research Report Welfare Reform and Interstate Welfare Competition
Theory and Evidence
Jan K. Brueckner
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This paper evaluates the evidence in favor of a downward bias in benefits created by moving from federal matching grants to block grants. The evidence is mixed. Benefit levels in nearby states appear to affect a given state's benefit choice. Policymakers act as if welfare migration is a significant phenomenon. This may result in a downward bias in benefits. The paper also raises several issues about this theory which require additional research.
Research Areas Social safety net
Tags Temporary Assistance for Needy Families (TANF) State programs, budgets