Working Paper: NBER ID: w19363
Authors: Peter Ganong; Jeffrey B. Liebman
Abstract: Approximately 1-in-7 people and 1-in-4 children received benefits from the US Supplemental Nutrition Assistance Program (SNAP) in July 2011, both all-time highs. We analyze changes in SNAP take-up over the past two decades. From 1994 to 2001, coincident with welfare reform, take-up fell from 75% to 54% of eligible people. The take-up rate then rebounded, and, following several policy changes to improve program access, stabilized at 69% in 2007. Finally, take-up and enrollment rose dramatically in the Great Recession, with take-up reaching 87% in 2011. We find that changes in local unemployment can explain at least two-thirds of the increase in enrollment from 2007 to 2011. Increased state adoption of relaxed income and asset thresholds and temporary changes in program rules for childless adults explain 18% of the increase. Total SNAP spending today is 6% higher than it would be without these increases in eligibility. The recession-era increase in benefit levels is also likely to have increased enrollment.
Keywords: SNAP; enrollment; business cycle; policy changes; unemployment
JEL Codes: E24; E62; H53; I38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| local unemployment (J64) | SNAP enrollment (I38) |
| unemployment duration (J64) | SNAP enrollment (I38) |
| relaxed income and asset thresholds (I31) | SNAP enrollment (I38) |
| temporary changes in program rules for ABAWDs (I38) | SNAP enrollment (I38) |
| recession-era increase in benefit levels (H55) | SNAP enrollment (I38) |
| broad-based categorical eligibility (I38) | SNAP enrollment (I38) |
| ABAWD waivers during high unemployment periods (J68) | SNAP enrollment (I38) |