The Effect of Population Density on Welfare Participation

This article addresses the paradox of rural and urban differences in poverty and welfare participation. That is, the poverty rate in rural America is higher than that found in urban America, yet the rural poor are less likely to use welfare. Results from an analysis of all U.S. counties indicate that population density is a major factor influencing participation in public assistance. Controlling for population compositional differences across counties, we find that residents in communities with lower population densities participate in welfare programs to a lesser extent. This study identifies possible explanations for this density effect.