Social & Education Policy
 

Study

The Dimensions and Consequences of Decentralized Social Safety Net Policies

We examine the dimensions and consequences of decentralized social safety net policies. We consider the adequacy of benefits and inclusiveness of receipt for eleven federal-state programs that constitute the core of safety net provision for working age adults and families: cash assistance, food assistance, health insurance, child support, child care, preschool/early education, unemployment insurance, state income taxes, cash assistance work assistance, disability assistance, and housing assistance. In the first part of the paper we examine the extent of cross-state inequality in social provision. We find substantial variation across states; variation that is consistent with policy design differences in state discretion; and at levels equal to or greater than variation across the European countries that have been recognized as having different welfare regimes. In the second section, we turn to an analysis of change over time (1994 to 2014) examining four dimensions of convergence: degree, location of change, direction of change, and scope. We find both decreases (retrenchment) and increases (expansions) of provision, a handful of cases of convergence (decreasing inequality) and divergence (increasing inequality), and a great deal of synchronous change and persistence in the magnitude of cross-state inequalities.