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Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records

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  • Erik Scherpf
  • Benjamin Cerf

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.

Suggested Citation

  • Erik Scherpf & Benjamin Cerf, 2019. "Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(2), pages 394-425, March.
    • Handle: RePEc:wly:jpamgt:v:38:y:2019:i:2:p:394-425
    DOI: 10.1002/pam.22113
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    8. Scott Cody & Laura Castner & James Mabli & Julie Sykes, "undated". "Dynamics of Food Stamp Program Participation, 2001-2003," Mathematica Policy Research Reports 580f5d8bb98c472e9cde860fe, Mathematica Policy Research.
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    Cited by:

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    2. Justine Hastings & Ryan Kessler & Jesse M. Shapiro, 2021. "The Effect of SNAP on the Composition of Purchased Foods: Evidence and Implications," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 277-315, August.
    3. Leanne Giordono & David W. Rothwell & Stephanie Grutzmacher & Mark Edwards, 2022. "Understanding SNAP use patterns among older adults," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 609-634, June.

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