Fiscal Federalism and Welfare Policy: The Role of States in the Growth of Child Ssi

Posted: 31 Jul 2003

See all articles by Jeffrey D. Kubik

Jeffrey D. Kubik

Syracuse University - Department of Economics

Abstract

The liberalization of the Supplemental Security Income (SSI) program in 1990 allowed many children receiving assistance from AFDC to enroll in SSI instead. Because of differences in the federal funding rules for these two programs, many state governments saved money by steering children from AFDC to SSI. I calculate this financial gain to states and present evidence that state fiscal considerations influenced the movement of children between welfare programs; states experiencing negative fiscal shocks were more likely to encourage these moves. These findings are important for predicting state responses to future adverse fiscal shocks in this post-welfare reform era.

Suggested Citation

Kubik, Jeffrey D., Fiscal Federalism and Welfare Policy: The Role of States in the Growth of Child Ssi. Available at SSRN: https://ssrn.com/abstract=396883

Jeffrey D. Kubik (Contact Author)

Syracuse University - Department of Economics ( email )

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Syracuse, NY 13244-1020
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