The Decline of Welfare Benefits in the U.S.: The Role of Wage Inequality / Robert Moffitt, David Ribar, Mark Wilhelm.

Format:

Book

Author/Creator:

Moffitt, Robert.

Contributor:

National Bureau of Economic Research.

Ribar, David.

Wilhelm, Mark.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5774.

NBER working paper series no. w5774

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Decline of Welfare Benefits in the U.S

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1996.

Summary:

Welfare benefits in the U.S. have experienced a much-studied secular decline since the mid-1970s. We explore a new hypothesis for this decline related to the increase in wage inequality in the labor market and the decline of real wages at the bottom of the distribution: we posit that voters prefer benefits which are tied to low-skilled wages. We test the hypothesis using a 1969-1992 panel of state-level data. An additional contribution of" our analysis is the use of General Social Survey data on voter preferences for welfare which we combine with Current Population Survey data to determine the voter in each state who has the median preferred welfare benefit level. Our analysis reveals considerable evidence in support of a role for declining real wages in the decline of welfare benefits.

Notes:

Print version record

September 1996.