Get with the programs
Race, “Deservingness,” and Social Spending Attitudes: The Role of Policy Delivery Mechanism
Christopher Ellis & Christopher Faricy
Political Behavior, forthcoming
Abstract:
This paper examines how the means through which social benefits are delivered — either through a direct government program, or through a tax expenditure program — affects how citizens view social welfare programs and their beneficiaries. Attitudes toward social spending in the United States are strongly conditioned by both racial considerations and perceptions of the deservingness of recipients. We argue that the political cues given by spending conducted through the tax code differ from those given by direct spending in a way that both de-racializes spending attitudes and changes the lens through which citizens evaluate the deservingness of beneficiaries. Through a series of survey experiments, we demonstrate that social benefits delivered through the tax code are less likely to activate racialized thinking than similar or identical benefits delivered directly. This is true, at least in part, because recipients of tax expenditures are perceived as more deserving than recipients of otherwise identical direct spending.
Effects of Maternal Work Incentives on Adolescent Social Behaviors
Dhaval Dave et al.
NBER Working Paper, February 2019
Abstract:
This study exploits variations in the timing of welfare reform implementation in the U.S. in the 1990s to identify plausibly causal effects of welfare reform on a range of social behaviors of the next generation as they transition to adulthood. We focus on behaviors that are important for socioeconomic and health trajectories, estimate effects by gender, and explore potentially mediating factors. Welfare reform had no favorable effects on any of the youth behaviors examined and led to decreased volunteering among girls, increases in skipping school, damaging property, and fighting among boys, and increases in smoking and drug use among both boys and girls, with larger effects for boys (e.g., ~6% for boys compared to 4% for girls for any substance use). Maternal employment, supervision, and child’s employment explain little of the effects. Overall, the intergenerational effects of welfare reform on adolescent behaviors were unfavorable, particularly for boys, and do not support longstanding arguments that limiting cash assistance leads to responsible behavior in the next generation. As such, the favorable effects of welfare reform for women may have come at a cost to the next generation, particularly to boys who have been falling behind girls in high school completion for decades.
Universal Basic Income in the US and Advanced Countries
Hilary Hoynes & Jesse Rothstein
NBER Working Paper, February 2019
Abstract:
We discuss the potential role of Universal Basic Incomes (UBIs) in advanced countries. A feature of advanced economies that distinguishes them from developing countries is the existence of well developed, if often incomplete, safety nets. We develop a framework for describing transfer programs, flexible enough to encompass most existing programs as well as UBIs, and use this framework to compare various UBIs to the existing constellation of programs in the United States. A UBI would direct much larger shares of transfers to childless, non-elderly, non-disabled households than existing programs, and much more to middle-income rather than poor households. A UBI large enough to increase transfers to low-income families would be enormously expensive. We review the labor supply literature for evidence on the likely impacts of a UBI. We argue that the ongoing UBI pilot studies will do little to resolve the major outstanding questions.
Does emergency financial assistance reduce crime?
Caroline Palmer, David Phillips & James Sullivan
Journal of Public Economics, January 2019, Pages 34-51
Abstract:
Does emergency financial assistance reduce criminal behavior among those experiencing negative shocks? To address this question, we exploit quasi-random variation in the allocation of temporary financial assistance to eligible individuals and families that have experienced an economic shock. Chicago's Homelessness Prevention Call Center (HPCC) connects such families and individuals with assistance, but the availability of funding varies unpredictably. Consequently, we can determine the impact of temporary assistance on crime by comparing outcomes for those who call when funds are available to those who call when no funds are available. Linking this call center information to arrest records from the Chicago Police Department, we find some evidence that total arrests fall between 1 and 2 years after the call. For violent crime, police arrest those for whom funds were available 51% less often than those who were eligible but for whom no funds were available. Single individuals drive this decrease. The decline in crime appears to be related, in part, to greater housing stability — being referred to assistance significantly decreases arrests for homelessness-related, outdoor crimes such as trespassing. However, we also find that financial assistance leads to an increase in property crime arrests. This increase is evident for family heads, but not single individuals; the increase is mostly due to shoplifting; and the timing of this increase suggests that financial assistance enables some families to take on financial obligations that they are subsequently unable to meet. Overall, the change in the mix of crime induced by financial assistance generates considerable social benefits due to the greater social cost of violence.
The Minimum Wage and Infant Mortality
Ali Jalali
University of Utah Working Paper, October 2018
Abstract:
Interest in the non-economic impact of minimum wage laws have led to a growing literature examining how population health measures respond to state minimum wage increases in the US. These studies rely on the canonical two-way fixed effect estimator, which is an unreliable method to infer causal effects with spatially heterogeneous populations. In this paper, I study the impact of minimum wage differences across states and within-state ordinances on infant mortality rates. I isolate the causal effect of the minimum wage by employing a spatial regression discontinuity design using neighboring counties in different states that are contiguous to a common state border as local treatment and control populations. I find that a 10 percent increase in local cost-of-living adjusted minimum wage reduces infant mortality rates by 3.2 percent among lower-educated mothers — a group more likely affected by minimum wage changes. I find that reductions in infant mortality is concentrated in the post-neonatal period. I also demonstrate that the traditional empirical approach employed in this literature will produce lower estimates of the health impact of the minimum wage. My findings provide robust evidence that minimum wage increases are causally linked with improved infant health.
Do Minimum Wage Increases Affect SNAP Benefits?
Thomas Snyder, Senayt Rinkevich & Weici Yuan
B.E. Journal of Economic Analysis & Policy, forthcoming
Abstract:
The recession of the late 2000s accompanied a steep increase in the number of people on the U.S. federal Supplemental Nutrition Assistance Program (SNAP). The economy recovered, yet the number of people on SNAP remained relatively high. This study investigates whether increases in minimum wages affected the number of SNAP beneficiaries and the per-capita cost of the program. Economic reasoning suggests a minimum wage increase can decrease poverty through higher wages or increase poverty by enacting a barrier to work. Using a panel data set (1997–2015) at the state level, two-way fixed effects estimates demonstrate a nonlinear relationship between minimum wages and SNAP benefits. At low minimum wages, increases in the minimum wage reduce SNAP enrollment and benefits; however, at high minimum wages, increases in the minimum wage increase SNAP enrollment and benefits. Twenty states have already passed the minimum wage turning point. Further increases can lead to more SNAP participants.
The Impact of SNAP Work Requirements on Labor Supply
Jeehoon Han
University of Chicago Working Paper, January 2019
Abstract:
I study the impact of work requirements for the Supplemental Nutrition Assistance Program (SNAP) on the labor supply of non-disabled adults without dependents, exploiting unique features of SNAP work requirements. First, states can exempt individuals living in certain areas from work requirements. Second, the work requirements apply only to adults aged below 50. Using a triple difference model that compares the time-series changes in labor supply for age groups on either side of the age threshold in areas before and after the exemption, I find that suspending work requirements does not discourage employment; a decrease in employment of more than 1.7 percentage points among people who are potentially affected by the exemption can be ruled out with my 95% confidence interval. I find some evidence of a reduction in labor supply at the intensive (weeks or hours worked) margins, but the effects are imprecisely estimated.
Do SNAP Work Requirements Work?
Timothy Harris
Illinois State University Working Paper, December 2018
Abstract:
The American Recovery and Reinvestment Act waived Supplemental Nutrition Assistant Program (SNAP) work requirements nationally in 2010 and broadened the eligibility for receiving waivers in subsequent years for Able-Bodied Adults without Dependents (ABAWD). From 2011 to 2016, many states voluntarily imposed work requirements while other areas became ineligible for waivers due to improved economic conditions. Did the work requirements increase employment as intended or did the policy merely remove food assistance for ABAWD who -- despite an improving economy -- still could not find employment? Using data from the American Community Survey from 2010 to 2016, I analyze the influence of work requirements on employment and SNAP participation for ABAWD. I find that work requirements significantly decreased SNAP participation and marginally increased employment for ABAWD using Difference-in-Difference-in-Differences estimation. This study contributes to the current policy debates on the effectiveness of expanding or instituting work requirements for welfare programs.
Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records
Erik Scherpf & Benjamin Cerf
Journal of Policy Analysis and Management, forthcoming
Abstract:
This study estimates the effect of local labor demand on the likelihood that Supplemental Nutrition Assistance Program (SNAP) beneficiaries are able to transition out of the program. Our data include SNAP administrative records from New York (2007 to 2012), linked at the person‐level to the 2010 Census, and linked at the county‐month‐level to industry‐specific labor market conditions. We find that local labor markets matter for the length of time spent on SNAP, but there is substantial heterogeneity in estimated effects across local industries. Using Bartik‐style instruments to isolate the effect of labor demand and controlling for the changing composition of entrants and program rules brought on by the Great Recession, we find that fluctuations in labor demand in industries with high shares of SNAP participants — especially food service and retail — change the likelihood of exiting the program. Notably, estimated industry effects vary across race and parental status, with black participants being most sensitive to changes in local labor market conditions and mothers benefiting less from growth in local labor demand than fathers and non‐parents. We confirm that our results are not driven by endogenous inter‐county mobility or New York City labor markets and are robust to multiple specifications.
Does School Lunch Fill the "SNAP Gap" at the End of the Month?
Agustina Laurito & Amy Ellen Schwartz
NBER Working Paper, January 2019
Abstract:
This paper examines the relationship between the timing of SNAP benefit payments and participation in school lunch and breakfast using the National Household Food Acquisition and Purchase Survey (FoodAPS). An event study approach examines participation over the five-day window before and after the SNAP payment. We find that school lunch participation decreases 17 to 23 percentage points immediately after the SNAP payment among 11-18 year olds while breakfast drops 19 to 36 percentage points. The decline begins the day prior to payment. We find no effects for 5-10 year olds. Models examining participation over the full SNAP month using individual fixed effects yield similar findings. Among teenagers, participation in school lunch and breakfast decline in the first two weeks of the SNAP month, increasing afterwards. Non-school meals show the opposite pattern. Overall, results indicate SNAP households rely more on school lunch and breakfast toward the end of the SNAP month. Adolescents substitute away from school meals to non-subsidized meal options earlier in the SNAP benefit cycle.
Homelessness Contributes To Pregnancy Complications
Robin Clark et al.
Health Affairs, January 2019, Pages 139-146
Abstract:
Homelessness during pregnancy poses significant health risks for mothers and infants. As health care providers increase their emphasis on social determinants of health, it is important to understand how unstable housing contributes to complications during pregnancy. We linked data about emergency shelter enrollees with Massachusetts Medicaid claims for the period January 1, 2008–June 30, 2015 to compare health care use and pregnancy complications for 9,124 women who used emergency shelter with those for 8,757 similar women who did not. Rates of mental illness and substance use disorders were significantly higher among homeless women. Adjusted odds of having nine pregnancy complications were also significantly higher for homeless women and remained substantially unchanged after we adjusted for behavioral health disorders. Emergency shelter users also had fewer ambulatory care visits and more months without billable care and were more likely to visit an emergency department. Homelessness and behavioral health disorders appear to be independent factors contributing to pregnancy complications and should be addressed simultaneously.
Getting to Know You: Welfare Fraud Investigation and the Appropriation of Social Ties
Spencer Headworth
American Sociological Review, February 2019, Pages 171-196
Abstract:
State-level public assistance agencies completed nearly a million SNAP fraud investigations in fiscal year 2016. These investigations hinge on compiling incriminating information about clients. Drawing on interviews with welfare fraud workers in five U.S. states, this article shows how fraud investigators creatively exploit clients’ social networks to extract such information, and thus use clients’ social ties against them. Investigators gain some information through elective cooperation, when people voluntarily implicate others. Fraud workers say these denunciations typically arise from negative-valence ties (bad blood). Other times, investigators co-opt neutral or positive-valence ties (good will) for enforcement purposes. This co-optation includes eliciting information from unwitting acquaintances and exploiting clients’ own online social networking activity. These findings demonstrate social ties’ appropriability, through which they serve as resources for relational outsiders’ interests. Repurposing welfare clients’ social ties for fraud enforcement presents a two-fold threat to subsistence and social mobility prospects: it imposes punishments — including program disqualifications — while simultaneously damaging social support networks. These enforcement practices reveal appropriability as an unrecognized property of social ties, particularly for socioeconomically marginalized people, and constitute a noteworthy element of contemporary poverty governance.
The Persistence of Financial Distress
Kartik Athreya, José Mustre-del-Río & Juan Sánchez
Review of Financial Studies, forthcoming
Abstract:
Using proprietary panel data, we show that many U.S. consumers experience financial distress (35% when distress is defined by having debt in severe delinquency, e.g.) at some point in their lives. However, most distress events are concentrated on a much smaller proportion of consumers in persistent trouble: fewer than 10% of borrowers account for half of all distress events. These facts can be largely accounted for in a straightforward extension of a workhorse model of unsecured debt with informal default that accommodates a simple form of heterogeneity in time preference.
The Effect of Residential Mobility on Student Performance: Evidence From New York City
Sarah Cordes, Amy Ellen Schwartz & Leanna Stiefel
American Educational Research Journal, forthcoming
Abstract:
Residential mobility is likely to have consequences for student performance, but prior empirical work is largely correlational and offers little insight into its impacts. Using rich, longitudinal data, we estimate the effects of residential mobility on the performance of New York City public school students. Using both student fixed effects and instrumental variables approaches, we find that long-distance moves have negative effects, while short-distance moves improve student performance. These differential effects are partially, but not fully, explained by school mobility. Rather, the positive effects of short-distance moves may be explained by improvements in housing, while the negative impacts of long-distance moves may be explained by lower performance relative to school peers and loss of social capital.
The third shift: Multiple job holding and the incarceration of women's partners
Angela Bruns
Social Science Research, forthcoming
Abstract:
A large body of research documents the sensitivity of women's employment to changing family circumstances, but we know little about the relationship between partner incarceration — a common family transition in the lives of disadvantaged women — and employment. Despite reasons to suspect that changes in resources associated with incarceration have consequences for the employment of family members, previous research suggests that partner incarceration does not influence the number of hours women work at their main jobs. This paper uses data from the Fragile Families and Child Wellbeing Study (N = 3835) to examine how partner incarceration is associated with multiple job holding, an alternative strategy for increasing earnings. Results show that women with incarcerated partners are more likely to work multiple jobs than women in otherwise similar circumstances, suggesting partner incarceration is linked to a “third shift” — to additional employment on top of the paid work and caregiving women already do.