Assessing Public Support for State Government Social Welfare Expenditures

Abstract

This study compared two different approaches to assessing the level of public support for social welfare spending at the state government level. The first approach focuses on the degree to which the public supports state government's involvement in public welfare spending. The second approach identifies the importance the public places on social welfare spending when compared to other possible functions of state government. Using Alabama data, the paper examined changes in general and comparative public support for state budget expenditures from 1980 to 2000 in Alabama. In addition, we examined the effectiveness of sociodemographic and attitudinal characteristics of respondents as predictors of both general and comparative support for three social welfare functions of state government. Support for “benefits for poor people” grew both generally and comparatively in the 20-year period; support for programs for older people remained steady; and support for mental health services declined. Sociodemographic predictors of general and comparative sup port were generally consistent with a self-interest model     

Shadow Welfare

Abstract

Corporate tax expenditures are a growing problem, although most contemporary analysts of traditional welfare programs ignore this policy area. The publicity surrounding Enron highlights this expanding segment of our welfare system. Corporate tax expenditures constitute a shadow welfare state that hides behind the complexities of our tax laws. This paper describes this often-neglected segment of the American welfare state.     

The relationship between child welfare financing,screening, and substantiation

This study examines the relationship between state-level child welfare spending and two important decision points in the child welfare system: the decision to screen out a referral and the decision to substantiate. The model is estimated using a pooled fractional probit estimator that controls for year effects and state-level clustering. The findings suggest that decreases in state-level child welfare expenditures predict increases in the proportion of referrals that are screened out and decreases in the proportion of maltreatment claims that are substantiated. The results are robust to the inclusion of caseload and federal spending as control variables, to the exclusion of states known to have changed their screening or funding practices during the sample period, and to the use of combined state and local child welfare expenditures as an explanatory variable in lieu of state-level child welfare expenditures. The findings imply that the amount of money a state spends on child welfare may influence important decisions in the child welfare process.     

Political Advocacy in the 1980s

Abstract

Government support for human services programs de creased considerably during the 1980s while defense spending rose dras tically. The shift in spending priorities is thought by some to be due to insufficiently active or incapable social welfare lobbyists. This paper ar gues that human services advocacy groups were as active as supporters of defense programs. Human services advocates were shut out of the de cision-making process primarily due to the lack of public support for their ideas. The implication, that social welfare advocates must build a solid base of public support for their proposals, can be applied to current issues.     

Income Inequality,Globalization, and the Welfare State: Evidence from 23 Industrial Countries, 1990–2009

The debate regarding the welfare state–weakening effect and the income inequality‐increasing effect of globalization remains a contentious issue among stratification scholars. For some, globalization increases income inequality, while for others, globalization has no, or a negligible, effect on income inequality. This study brings new evidence to bear on this debate by separately investigating effects of multiple indicators of globalization (international trade, foreign direct investment [FDI] and immigration), and of welfare state generosity (government social‐protection spending) on (1) income inequality before taxes and transfers and (2) income inequality after taxes and transfers, using data from 23 Organisation for Economic Co‐operation and Development (OECD) countries over 1990–2009. First, results show a positive effect of international trade, a negative effect of immigration, but no effect of FDI and government social‐protection spending on income inequality before taxes and transfers. Second, results show no effect of the globalization indicators but a negative effect of government social‐protection spending on income inequality after taxes and transfers. These findings suggest that (1) globalization has inequality‐increasing effects depending on measures of income inequality; (2) the welfare state, in many OECD countries, continues to shape income distribution; and (3) in contrast with the popular narrative, immigration may decrease income inequality.     

Empowering Domestic Discretionary Spending in Federal Budget Deliberations

Abstract

Federal domestic discretionary spending (DDS) funds a large portion of human services in the American welfare state including mental health, child welfare, childcare, public health, job training, and education programs. Yet relatively little research has been conducted on this small but important part of the federal budget. This article examines a number of factors that have limited the size of DDS and that may imperil its existence in coming decades. The article suggests that policy theorists and researchers need to devote more attention to DDS and that policy advocates need to develop effective strategies for protecting DDS from unwarranted assaults in the budget-making process.     

A Cross‐National Look at How Welfare States Reduce Inequality

A major shift in welfare state research occurred at the turn of the century as researchers moved from explaining the development of welfare states and variations in spending across welfare states to a focus on welfare state outcomes. One of the key outcomes examined in the literature is inequality. While much of the early literature examined overall spending, followed by analysis of specific taxes and transfers related to old age, unemployment, disability, health, and families, more recent research has included a broader range of welfare state policies including work‐family policies and flexicurity. This essay highlights some important developments in the research on welfare states and inequality.     

Home Ownership, Social Insurance, and the Welfare State

Home ownership has potentially significant consequences for welfare state policy. High owner-occupancy rates may function as private insurance where social spending is low (a substitution effect). Alternatively, state income redistribution policies could raise the number of home owners (an income effect). Cross-national time-series data show that social spending is negatively related to home ownership, and mediates the positive relationship between income inequality and owner-occupancy rates. This suggests that owner-occupancy acts as a form of social insurance over the life course. Future welfare state researchers should consider the issue of home ownership in analyses of inequality and the social safety net.

THE WELFARE COSTS OF DEFICIT FINANCE

We analyze the welfare consequences of deficit finance in a general equilibrium model fit to the US. economy. Current spending may be financed with current and/or future distortionary taxes. The economy is open to international capital flows. The welfare costs of financing marginal current spending are substantial and are sensitive to the timing of the required taxes; postponing a tax on labor income is advantageous but postponing a tax on asset income is not. Ricardian equivalence poorly approximates the economy we consider.     

Strengthening Senior Tax Credit Programs in Massachusetts

Summary

In the last decade, property taxes have increased, creating a financial burden on senior homeowners. In Massachusetts, senior property tax credit programs have arisen to address this problem, as well as to provide cost-effective volunteer assistance for municipal departments, offer seniors meaningful work that otherwise would not have been attempted, and foster involvement in municipal government among seniors. The success of the programs in retaining senior homeowners in the community remains to be evaluated. Program specifics are detailed, policy options are considered, and recommendations are made to strengthen existing programs and assist replication.     

Assessing the Differences in Distance of Interstate Migration, 1980

Abstract

Distance is an integral dimension of migration; yet, in recent years, ignored in migration research except as a control variable. This study examines distance of 1975–80 interstate migration and several explanations for the relations between distance and characteristic of migrants and locations. While earlier research provides only a few findings to replicate, the literature is replete with suggestions concerning the relation between distance and both areal and individual characteristics. These include that distance represents transportation costs, psychic costs — e.g., separation from family and friends and cultural dissimilarity of areas — intervening opportunities and competing migrants, geographic scope of labor market and diminishing information about opportunities.

Observations are individual records from the 1980 one-in-ten-thousand PUMS files. The sample is restricted to nonblack, noninstitutionalized head of households, age 25 to 64 in 1980. Respondents must be civilians and residing in the contiguous 48 states in both 1975 and 1980. Individual characteristics include distance of migration, sex, age, marital status, nativity, education, personal income, occupation, employment status and student status. Most location characteristics are from County Statistics File 2. These characteristics include average wage, per capita income, unemployment, average number of days per year below freezing and variables on local government taxes, educational expenditures, health expenditure and welfare expenditures. Additionally, we use proportion of the population born in state of origin residing at destination as a measure of information flow between origin and destination. We correct for sample selection bias in restricting the study to migrants.

We find outmigration is shaped by characteristics of individuals; however, distance of migration is shaped by characteristics at locations. Findings lend support to an interpretation of distance reflecting psychic costs and information and are consistent with a cost/benefit view of factors contributing to distance of migration.     

PRODUCTIVITY EFFECTS OF PUBLIC CAPITAL MAINTENANCE: EVIDENCE FROM U.S. STATES

This article assesses the productivity effects of infrastructure operation and maintenance (O&M) spending by state and local governments in the 48 contiguous U.S. states over the period 1978–2000. We explicitly account for transboundary spillovers of capital and O&M spending and follow a semiparametric methodology that allows us to estimate state‐specific output elasticities. We find strong evidence that in all 48 states the cross‐state spillover effects of O&M outlays on productivity exceed their within‐state impacts and are substantially higher than the spillover effects of capital expenditure. (JEL C14, E22, E62, H76, O11, O47, R11)     

From decentralization to integration: the development of social welfare services for disabled veterans in China

China's current social preferential treatment system for disabled veterans began in the war years and has developed during periods of peace. However, there are multiple barriers, such as decentralized cooperation between central and local governments, which prevent the state from providing effective welfare services. The establishment of the Ministry of Veterans Affairs can be seen as an effective attempt to resolve the decentralization of management, similar to relevant legislative work and establishing provincial-level institutions in local governments. This article focuses on how central and local governments attempt to break though the barriers to providing effective welfare services for disabled veterans in China and integrate decentralized responsibility to cooperate in the management system of welfare services for disabled veterans. The integration of welfare services and the rational use of social security as a platform can build a new mechanism of preferential treatment.     

Weighing the Success of a National Alzheimer's Disease Service Demonstration

Summary

As the need for long-term care services within the United States has grown dramatically, Congress has consistently deflected the primary responsibility for such care to state governments, local organizations, and, ultimately, the family. This paper examines the impact of the Alzheimer's Disease Demonstration Grants to States (ADDGS) program, a small federally funded initiative within the context of this trend. Although the demonstration can be deemed a huge success relative to the goals of creating new services for an underserved target population, questions are raised about the merits of the program relative to the exploding need for an effective network of long-term care services.     

Diffusion of the Property Tax Work-Off Program for Senior Homeowners in Massachusetts

Property tax work-off programs (TWOPs) provide senior homeowners with relief from some of their property tax obligations in exchange for services provided to local governments. These programs are offered by some county and municipal governments at their own discretion in a number of states. Through a qualitative study comparing municipalities in Massachusetts that participate in the program with similar communities that do not participate, the authors sought to learn the reasons for both participation and nonparticipation. They interviewed local officials in eight participating and six nonparticipating communities. Mohr's theory for adoption and Roger's theory for diffusion are used for the conceptual framework of the study. Local leaderships' motivation, financial or political resources and obstacles, senior homeowners' awareness, communication between communities, and perceived benefits of the program were the major factors in adoption and diffusion of TWOPs in Massachusetts.     

The Policy Transfer Model

ABSTRACT

“New” social welfare policies are often actually policies borrowed from other states or nations. This paper reviews the recent theoretical developments in understanding the processes of policy transfer and presents a “policy transfer” model that can be a useful heuristic tool for social workers engaged in policy making. It discusses how the field of social work can benefit from understanding the factors underlying successful and unsuccessful policy transfer, and argues for the inclusion of the study of policy transfer in social welfare policy courses.     

Does Institutional Trust Increase Willingness to Pay More Taxes to Support the Welfare State?

We evaluate the effect of institutional trust on the willingness to pay more taxes to support the welfare state. We found a positive effect of institutional trust on the willingness to pay more taxes to support the welfare state irrespective of the empirical approach used. Our instrumental variable analysis shows that causality run from institutional trust to welfare state support. A one-unit increase in institutional trust leads to a 15 percentage point increase in the willingness to pay more taxes to help the needy. Similarly, a one-unit increase in institutional trust leads to a 16 percentage point increase in the willingness to pay more taxes to support public health care and education. Consequently, institutional trust should be viewed as one of the most important mechanisms that protect the welfare state from dismantling and retrenchment. We also found a stronger effect of support for more universal programs such as public health care and education than for helping the needy.     

Ethnic Organizations and the Welfare State: The Impact of Social Welfare Programs on the Formation of Indochinese Refugee Associations

The expansion of the welfare state during the 20th century has altered the conditions shaping the formation of ethnic organizations. Drawing upon research in the divergent fields of social policy, immigrant communities, and social movements, this article argues that social welfare programs promote or suppress ethnic organizations depending on how they affect an ethnic community's institutional completeness. This welfare state channeling theory is contrasted with ethnic competition and resource mobilization explanations for the formation of ethnic organizations. An analysis of 800 Indochinese refugee associations finds that public assistance has no effect on the prevalence of these organizations, but that privatization of federal social service expenditures does, thus partially supporting the welfare state channeling theory.     

Welfare Reform on American Indian Reservations

Abstract

In this article we document trends in welfare caseloads and some initial experiences of service providers and welfare recipients on reservations within Arizona under Temporary Assistance for Needy Families (TANF). We document the issues and concerns of state and tribal service providers as they implement the legislation on reservations that are often geographically isolated and which lack infrastructure, jobs, childcare and transportation. We also record experiences of women with children on reservations with the 1996 federal welfare legislation. These families experience similar barriers when trying to move from welfare to work as do their counterparts across the country; however, these barriers are magnified on reservations. The welfare recipients' barriers include: a shortage of employment opportunities on reservations; a lack of transportation and childcare facilities; low levels of education and job experience; and, individual and family problems. Poor families in Indian communities face additional barriers to employment because of their geographic isolation, lack of access to basic necessities (like telephones), as well as stereotypes and discrimination by employers due to ethnicity or personal/family histories.