The Alaska Permanent Fund Corporation, at 10 Street and Glacier Avenue, on Wednesday, Sept. 4, 2019. (Michael Penn | Juneau Empire)

The Alaska Permanent Fund Corporation, at 10 Street and Glacier Avenue, on Wednesday, Sept. 4, 2019. (Michael Penn | Juneau Empire)

PFD’s impact on state wide-ranging

The check impacts many aspects of socioeconomic life in Alaska.

A majority of Alaskans will wake up Thursday morning $1,606 richer as the Alaska Permanent Fund dividend check is distributed across the state.

The PFD check means different things to different people. For some, the annual check means a new TV, help with bills or the ability to make ends meet.

Researchers are finding that the check also impacts many aspects of socioeconomic life in Alaska.

Researchers at the University of Alaska Anchorage are beginning to understand how the annual check impacts residents’ behavior and spending habits.

At the University of Alaska Anchorage’s Institute of Social and Economic Research, social scientists are analyzing “the causal effect” of the PFD on a variety of socioeconomic outcomes, including employment, consumption, income inequality, health and crime. Associate professor of economics at the institute, Mouhcine Guettabi, published a report in May exploring the socioeconomic effects of the annual PFD check.

Since 1982, Alaskans have received a PFD check every year. The smallest payout was $331.29 in 1984. The highest was $2,072 in 2015, though, in 2008 the year’s $2,069 PFD check included an additional one-time payment of $1,200. A surplus of state natural resource revenues were distributed as the additional $1,200 when then Gov. Sarah Palin signed Senate Bill 4002.

Recent research from the institute shows that Alaskans spend significantly more on services and nondurable goods — which include clothing, fuel, food and cosmetics — in the month of the dividend payment. The excess consumption persists over the first quarter after the dividend payment.

According to the May report, evidence indicates that the PFD has a positive, but modest effect on birth weight, particularly with low-income mothers. Another recent paper in the report shows that there is strong evidence the PFD check reduces childhood obesity for 3-year-olds.

“An additional $1,000 decreases the probability of being obese as a child by 4.5 percentage points,” the report said.

When it comes to poverty, the PFD has substantially reduced poverty for rural Alaska Natives, especially in the elderly, the report said. However, as regional corporation dividends have increased in size over time, the poverty reducing effect of the PFD has declined.

In 2000, the PFD lifted 12.4% of the rural Alaska Native population out of poverty, the report said. While the PFD has shown to reduce poverty, recent evidence suggests the PFD increases income inequality in both the short and long term, the report said.

The report finds that in the weeks following PFD distribution, substance abuse related incidents increase and property crime related events decrease. With an increase in payment size, both substance abuse and medical assist instances increase, the report found.

There is about a 10% increase in substance abuse incidents and an 8% decrease in property crime in the four weeks after the PFD is issued, with no average change in violence, the report said.

Applicants who filed a paper application, or require a paper check will be eligible for payment on October 24, 2019.

To be eligible for the PFD check, an applicant must have been an Alaska resident for an entire calendar year preceding the date they applied for a dividend.

More in News

The Kenai Peninsula College main entrance on Aug. 18, 2022, in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Chiappone and Dunstan to speak at the KPC Showcase

Kenai Peninsula College continues its showcase with two new speakers this week and next

U.S. Rep. Mary Peltola, D-Alaska, talks about issues of concern regarding the proposed merger of supermarket chains Kroger and Albertsons during a floor speech in the House chamber on Wednesday. (Screenshot from official U.S. House of Representatives video feed)
Begich leads in early results, but Alaska’s U.S. House race won’t be immediately decided

About 245,000 ballots had been counted by 11:32 p.m., and Peltola trailed by about 5 percentage points

The Alaska governor’s mansion on Wednesday. Gov. Mike Dunleavy is considered a contender for a post in Donald Trump’s second presidential administration. (Mark Sabbatini / Juneau Empire)
Election summary: Trump wins, GOP takes over U.S. Senate, Alaska may get new governor

Begich and repeal of ranked choice voting narrowly lead; GOP may lose control of state House.

Nesbett Courthouse in downtown Anchorage on Oct. 7, 2024. (Yereth Rosen/Alaska Beacon)
Voters line up at the polling site at Anchorage City Hall on Nov. 4, 2024. City Hall was one of the designated early voting sites in Alaska’s largest city. It is not a designated site for Election Day voting. (Yereth Rosen/Alaska Beacon)
Alaska Republicans lose two seats in state House, increasing odds of leadership switch

Rural Alaska precincts had reported few results by 11:30 p.m. Tuesday night.

Donald Trump won or was leading as of Wednesday morning in all seven swing states in the 2024 presidential election. (Doug Mills / The New York Times)
Donald Trump returns to power, ushering in new era of uncertainty

He played on fears of immigrants and economic worries to defeat Vice President Kamala Harris.

A voter is handed as ballot at Woodworth School in Dearborn, Mich., on Tuesday, Nov. 5, 2024. One of the most consequential presidential elections in the nation’s modern history is well underway, as voters flocked to churches, schools and community centers to shape the future of American democracy. (Nick Hagen/The New York Times)
Trump verges on victory, picking up Pennsylvania

Donald Trump has captured Pennsylvania, the biggest prize of the seven battleground… Continue reading

Signs and supporters line the Kenai Spur Highway in Kenai, Alaska, on Tuesday, Nov. 5, 2024. (Jake Dye/Peninsula Clarion)
Update: Unofficial results for the 2024 general election

Preliminary, unofficial election results as of 9:55 p.m.

Poll worker Carol Louthan helps voters submit ballots at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Tuesday, Nov. 5, 2024. (Jake Dye/Peninsula Clarion)
Update: Bjorkman, Ruffridge, Elam and Vance lead in election night results

Several residents said that they came out to vote because they knew this election was “a big one.”

Most Read