Geographic Inequality in Social Provision: Variation across the US States, ,This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.
Chapter in forthcoming NBER book Measuring Distribution and Mobility of Income and Wealth, Raj Chetty, John N. Friedman, Janet C. Gornick, Barry Johnson, and Arthur Kennickell, editors One of the most significant shifts in the study of inequality is a growing appreciation of geographic inequality, specifically inequality across the 50 U.S. states. We assess the role of state governments in social policy provision, directing attention to the consequences of policy decentralization. Using unique data from the State Safety Net Policy (SSNP) dataset which consists of comparable indicators of state-level social provision, we examine the magnitude of cross-state variation in the generosity of benefits and the inclusiveness of safety net provisions. We find substantial inequality across states in social provision. We find that this cross-state inequality is larger in programs that allow for higher levels of state discretion. Finally, we find that when accorded these higher levels of discretion, states with substantial Black populations use this discretion in ways that limits the generosity and inclusiveness of social provision. These findings demonstrate how cross-state policy variation can contribute to, and exacerbate, consequential racial disparities in economic security. This paper is available as PDF (459 K) or via email
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