An empirical analysis of the welfare magnet debate using the NLSY

This paper examines the extent to which differences in welfare generosity a cross states leads to interstate migration. Using microdata from the Nation al Longitudinal Survey of Youth (NLSY) between 1979 and 1992, we employ a q uasi-experimental design that utilizes the categorical eligibility of the w elfare system. The pattern of cross-state moves among poor single women wit h children, who are likely to be eligible for benefits is compared to the p attern among other poor households. We find little evidence indicating that welfare-induced migration is a widespread phenomenon.JEL classification: I 38.