Abstract: | Welfare policy in the United States is strongly influenced byintergovernmental factors. This analysis traces the effectsof federal financial incentives on state welfare policy decisionsacross programs and examines how changes in federal incentivesaffect state policy choices over time. The data indicate thathigher levels of federal participation are associated with substantialreductions in variance of welfare grants among the states andwith higher levels of interstate equity. These findings implythat significant shifts in welfare outputs would result froma devolution of responsibility for welfare to the states. |