Locational choice of AFDC recipients within California: a conditional logit analysis |
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| Institution: | 1. Senior Researcher, Economía Aplicada, Instituto Nacional de Investigación Agropecuaria (INIA), Uruguay;2. Researcher, Agroclima y Sistemas de Información (GRAS), Instituto Nacional de Investigación Agropecuaria (INIA), Uruguay;1. Department of Economics and Finance, Tallinn University of Technology, Akadeemia tee 3-482, 12618 Tallinn, Estonia;2. Eesti Pank, Estonia;1. Department of Seismotectonics, Institute of Rock Structure and Mechanics, Czech Academy of Sciences, Prague, Czech Republic;2. Department of Geophysics, Faculty of Mathematics and Physics, Charles University, Prague, Czech Republic |
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| Abstract: | This paper examines factors that influence migration of AFDC recipients within California. A county level conditional logit model is used to analyze the impact of cost adjusted benefits on intrastate moves during recipients’ first year of welfare participation. Costs of living, particularly housing costs, differ considerably across counties of California, yet the welfare benefit is set at the state level. This creates the potential for variation in the purchasing power of the welfare benefit if a family chooses to move. Variation in cost of living is shown to have a significant effect on migration patterns of AFDC recipients. Estimates suggest that a $150 decrease in fair market rent results in 15% more migration to the county. Recipients’ migration is more responsive to cost of living than migration of the general population. |
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