Working Paper: NBER ID: w28877
Authors: Colin Gray; Adam Leive; Elena Prager; Kelsey B. Pukelis; Mary Zaki
Abstract: Work requirements are common in U.S. safety net programs. Evidence remains limited, however, on the extent to which work requirements increase economic self-sufficiency or screen out vulnerable individuals. Using linked administrative data on food stamps (SNAP) and earnings with a regression discontinuity design, we find robust evidence that work requirements increase program exits by 23 percentage points (64 percent) among incumbent participants after 18 months. There is a 53 percent overall reduction in program participation among adults who are subject to work requirements. Homeless adults are disproportionately screened out. We find no effects on employment, and suggestive evidence of increased earnings in some specifications. Our findings indicate that, per dollar of public expenditure, eliminating work requirements would likely transfer more resources to low-income adults than other programs targeting the same population.
Keywords: SNAP; work requirements; labor supply; program participation; ABAWDs
JEL Codes: H53; I30; I38; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| eliminating work requirements (I38) | resource transfer to low-income adults (I38) |
| work requirements (I38) | program exits (Y60) |
| work requirements (I38) | program participation (H53) |
| work requirements (I38) | employment levels (J23) |
| work requirements (I38) | earnings (J31) |