HOLDING THE CHECK HOSTAGE - REPRESENTATIVE PAYEES, CLIENTS, AND THE UNDERGROUND ECONOMY

This article examines how the institutional, the informal, and the und erground economy converge within the representative payee system, a fe deral program designed to provide needed income to poor, inner-city re sidents. Data from participant observation and unstructured interviews reveal how supplemental security income (SSI) entitlements help fuel the inner-city economy in two major ways: (1) through intended payment s to individuals defined by the system as disabled and (2) through uni ntended payments to individuals using the role of payee to generate pr ofit within the hidden economy. The analysis describes the representat ive payee system and how it operates. Subsections examine the processe s of becoming a payee or client and the relationships between the two. Finally, the article analyzes how the payee system is integrated with in the underground economy.