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A Look at Welfare Dependency Using the 1984 SIPP Panel File

Written by:
Working Paper Number SIPP-WP-75

Introduction

Beginning in the Fall of 1983, The Bureau of the Census launched a new data collection activity known as the Survey of Income and Program Participation (SIPP).  This survey presents researchers with a new opportunity to study issues related to welfare dependency and use.  SIPP was designed to be a multipurpose survey providing: 1) improved cross-sectional estimates of annual income, 2) new information concerning assets, liabilities, work and marital histories, child care, taxes, etc., and 3) longitudinal data on changes in labor force activity, income sources, household composition, etc.  As such, SIPP's structure differs greatly from the survey most often used to examine the dynamics of welfare, the Panel study of Income Dynamics (PSID).  In SIPP, data collection focuses on reporting of income, program participation, and household composition on a monthly accounting period over a relatively short period of time, 2 ½ to 3 years.  To reduce recall bias, interviews are conducted at 4-month intervals and questions refer to each month of the 4-month period preceding the interview month.  The PSID obtains data by conducting one interview annually and uses the calendar year as the reference period but has followed individuals over long periods of time with the initial interviews taking place in 1968.

Page Last Revised - October 8, 2021
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