AFDC and work: Magnets or anchors for the poor?

Literature analyzing the linkage between welfare and interstate migration i s divided. Lack of consistent findings partially depends on sample used and time period when studies are done. Choice of analytical modeling technique has also led to divergent findings. This paper addresses these issues by c omparing the effects of welfare and work on poor/ nonpoor migration pattern s using contemporary structural and household data. Findings offer no suppo rt for the welfare magnet hypothesis. Effects of Aid to Families with Depen dent Children (AFDC) differ by poverty status at the place of destination f or 1985 and 1990. Householders are migrating to states with lower AFDC bene fits. Effects of work also differ by poverty status. For 1985, householders are moving to states with lower unemployment rates. For 1990, householders are moving to states with lower wages. In general, householders remain in states with lower AFDC benefits giving more credence to an anchor effect of higher welfare benefits.