It's No Laffer’Matter: Claim That Increasing Welfare Aid Breeds Poverty and Dependence Fails Statistical Test

Sanford F. Schram and Paul H. Wilken

American Journal of Economics and Sociology, 1989, vol. 48, issue 2, 203-217

Abstract: Abstract. The claim is analyzed that there is a Laffer‐type relationship between welfare spending and poverty. Conservative analysts in recent years have asserted that over the last several decades poverty declined with increased welfare spending up to a point, beyond which increases in spending produced increases in poverty. Measures of pre‐transfer and pre‐welfare poverty are used in order to account for poverty due to welfare dependency. Employing data for 1959‐1983, the authors find evidence which casts doubt on the validity of the hypothesis that there has been a Laffer‐type relationship between welfare spending and poverty.

Date: 1989
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https://doi.org/10.1111/j.1536-7150.1989.tb02118.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:ajecsc:v:48:y:1989:i:2:p:203-217

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