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Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration
1University of Colorado-Boulder, 303-492-6770.
Summary
Welfare magnets attract recipients. States with higher Aid to Families with Dependent Children (AFDC) benefits see increased participation in border counties compared to interior ones, suggesting welfare-induced migration.
Area of Science:
- Economics
- Public Policy
- Sociology
Background:
- Welfare magnets theory suggests that generous social assistance programs attract recipients.
- State-level variations in welfare benefits may influence migration patterns.
Purpose of the Study:
- To investigate welfare-induced migration by comparing Aid to Families with Dependent Children (AFDC) participation in border versus interior counties.
- To determine if proximity to higher-benefit states influences welfare enrollment.
Main Methods:
- Comparative analysis of AFDC participation rates.
- Utilized county-level data from 1970-1990.
- Compared border counties to interior counties within the same state.
Main Results:
- Border counties adjacent to lower-benefit states exhibited lower AFDC participation relative to interior counties.
- A $100 decrease in neighboring state benefits correlated with a 4.0-6.8% increase in AFDC expenditures in border counties.
- Findings support the welfare-induced migration hypothesis.
Conclusions:
- Geographic proximity to differing welfare benefit levels significantly impacts AFDC participation.
- Migration decisions are influenced by state-level differences in social assistance.
- Policy implications for state welfare benefit levels and interstate migration.
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