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Immigrants’ labor supply response to Food Stamp access

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  • East, Chloe N.

Abstract

Welfare reform in 1996 created a new, large disparity in Food Stamp eligibility between documented non-citizen immigrants and natives. Subsequent policies restored eligibility for most of these immigrants at different times in different states, and I use these changes to estimate the effect of program access on the labor supply of immigrants–a policy-relevant population. The Food Stamp program is one of the largest safety net programs today, and my analysis provides one of the first quasi-experimental estimates of the effects of the modern Food Stamp program on adult labor supply. I find strong evidence of labor supply disincentives, and the magnitude and margin of this response varies across demographic groups. Access to the program reduces the employment rates of single women by about 6%, whereas married men continue to work but reduce their hours of work by 5%. These findings confirm the predictions of traditional labor supply theory regarding the response to a means-tested program.

Suggested Citation

  • East, Chloe N., 2018. "Immigrants’ labor supply response to Food Stamp access," Labour Economics, Elsevier, vol. 51(C), pages 202-226.
    • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:202-226
    DOI: 10.1016/j.labeco.2018.01.003
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    Cited by:

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    2. Marks, Mindy & Prina, Silvia & Tahaj, Redina, 2023. "Short-Term Labor Supply Response to the Timing of Transfer Payments: Evidence from the SNAP Program," IZA Discussion Papers 16299, Institute of Labor Economics (IZA).
    3. Dias, Felipe A & Chance, Joseph, 2021. "COVID-19, Public Charge Rules, and Immigrant Employment in the United States," Institute for Research on Labor and Employment, Working Paper Series qt37f8w4sf, Institute of Industrial Relations, UC Berkeley.
    4. Wu, Kaidi, 2022. "SNAP Benefit and Labor Supply: Evidence from Taxi Drivers," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322546, Agricultural and Applied Economics Association.
    5. Laird, Jennifer & Santelli, Isaac & Waldfogel, Jane & Wimer, Christopher, 2018. "Forgoing Food Assistance out of Fear: Simulating the Child Poverty Impact of a Making SNAP a Legal Liability for Immigrants," SocArXiv 6sgpk, Center for Open Science.
    6. Xu, Licheng, 2020. "Timing of SNAP disbursement and crime rate in the United States," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304248, Agricultural and Applied Economics Association.
    7. Elias Ilin & Alvaro Sanchez, 2023. "Mitigating Benefits Cliffs for Low-Income Families: District of Columbia Career Mobility Action Plan as a Case Study," FRB Atlanta Community and Economic Development Discussion Paper 2023-01, Federal Reserve Bank of Atlanta.
    8. Han, Jeehoon, 2022. "The impact of SNAP work requirements on labor supply," Labour Economics, Elsevier, vol. 74(C).
    9. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2020. "Immigrant Responses to Social Insurance Generosity," Labour Economics, Elsevier, vol. 65(C).
    10. Joel Cuffey & Timothy K. M. Beatty & Elton Mykerezi, 2022. "Work Effort and Work Requirements for Food Assistance among U.S. Adults," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 294-317, January.
    11. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).
    12. Deiana, Claudio & Geraci, Andrea & Mazzarella, Gianluca & Sabatini, Fabio, 2021. "COVID-19 Relief Programs and Compliance with Confinement Measures," IZA Discussion Papers 14064, Institute of Labor Economics (IZA).
    13. Matthew Freedman & Yoonjung Kim, 2022. "Quasi‐Experimental Evidence on the Effects of Expanding Cash Welfare," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(3), pages 859-890, June.
    14. Jiyoon (June) Kim & Matthew P Rabbitt & Charlotte Tuttle, 2020. "Changes in Low‐Income Households’ Spending and Time Use Patterns in Response to the 2013 Sunset of the ARRA‐SNAP Benefit," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 777-795, December.

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    More about this item

    Keywords

    Food Stamps; Labor supply;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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