“Welfare Magnets” and Benefit Decline: Symbolic Problems and Substantive Consequences

Abstract

In response to concern about migration, some states have been freezing benefit levels and trying to institute lower benefits for newly arrived out-of-state applicants. There is also evidence that rising welfare rolls lead states not to raise benefits. Yet, interstate variation in welfare benefits has narrowed over the last two decades. There is also evidence that while interstate competition, or comparison of benefit levels, discourages high-benefit states from raising benefits, states look more at themselves then they look at each other. The most significant factor affecting AFDC benefit-levels appears to lie in the intergovernmental arrangements forfinancing public assistance (i.e., states often allow Food Stamps and Medicaid to substitute for AFDC). In addition, the migration ofpoorfemaleheaded families is patterned after the migration of the population in general; they move to where there isjob growth. A major political consequence ofstressing welfare migration may be its symbolic value in reinforcing prejudices against welfare recipients.