Working Paper: NBER ID: w31307
Authors: Jason B. Cook; Chloe N. East
Abstract: We comprehensively evaluate the effect of the Supplemental Nutrition Assistance Program (SNAP) on labor supply using newly linked data on SNAP applicants to administrative earnings records. Prior to applying for SNAP, earnings are trending down, but this trend is more severe for those granted SNAP than those denied. This motivates our novel IV approach based on assignment of applicants to caseworkers. Most applicants do not work before applying, and do not change work if granted SNAP. Those who work before applying appear to treat SNAP as insurance against negative shocks; they decrease work temporarily but work more in the longer-run.
Keywords: SNAP; labor supply; caseworkers; means-tested transfers
JEL Codes: H51; H53; I38; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Labor market attachment (pre-application) (J68) | SNAP receipt (Y60) |
| Conditional Approval Rates (CCAR) (G28) | SNAP receipt (Y60) |
| SNAP receipt (Y60) | Labor supply (full sample) (J22) |
| SNAP receipt (Y60) | Temporary decrease in work (J22) |
| SNAP receipt (Y60) | Increased employment and earnings (3 years post-application) (J68) |