In 1996, President Bill Clinton hailed the 'end of welfare as we know it' when he signed the Personal Responsibility and Work Opportunity Act. The law effectively transformed the nation's welfare system from an entitlement to a work-based one, instituting new time limits on welfare payments and...

We study the political economy of policy innovations during the U.S. welfare reform in 1996. Specifically, we investigate how reputation concerns among governors influence the decision to experiment with welfare policies. In line with a political agency model, our empirical results suggest that...