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Leaving benefits on the table: Evidence from SNAP

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  • Gray, Colin

Abstract

Many social insurance programs require that beneficiaries periodically re-verify eligibility, allowing officials to identify ineligible applicants but risking the loss of eligible applicants who do not complete these requirements. While many states have invested in simplified verification procedures to reduce that risk, the extent of exit among eligible beneficiaries and the efficacy of these simplifications is not well established. This paper uses administrative data from the Supplemental Nutrition Assistance Program (SNAP) to establish three facts. First, retention in SNAP is low, with approximately one-half of entering cases leaving in the first year. Second, qualitative evidence and quantitative simulations suggest that approximately half of those who exit in the first year remain eligible. Third, using the staggered roll-out of an online case management tool in Michigan, I find that this simplification reduced the rate of long-term exit at key verification dates by almost 2pp (12%). These facts suggest that eligible retention is very incomplete, and that ongoing simplification efforts increase retention among eligible beneficiaries.

Suggested Citation

  • Gray, Colin, 2019. "Leaving benefits on the table: Evidence from SNAP," Journal of Public Economics, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:pubeco:v:179:y:2019:i:c:s004727271930115x
    DOI: 10.1016/j.jpubeco.2019.104054
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    References listed on IDEAS

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    1. Zhuan Pei, 2017. "Eligibility Recertification and Dynamic Opt-In Incentives in Income-Tested Social Programs: Evidence from Medicaid/CHIP," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 241-276, February.
    2. Bruce D. Meyer & Nikolas Mittag, 2015. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net," Upjohn Working Papers 15-242, W.E. Upjohn Institute for Employment Research.
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    4. Amy Finkelstein & Matthew J Notowidigdo, 2019. "Take-Up and Targeting: Experimental Evidence from SNAP," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1505-1556.
    5. Peter Ganong & Jeffrey B. Liebman, 2018. "The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes," American Economic Journal: Economic Policy, American Economic Association, vol. 10(4), pages 153-176, November.
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    Cited by:

    1. Marks, Mindy & Prina, Silvia & Tahaj, Redina, 2024. "Short-term labor supply response to the timing of transfer payments: Evidence from the SNAP program," Labour Economics, Elsevier, vol. 91(C).
    2. Marks, Mindy & Prina, Silvia & Tahaj, Redina, 2024. "Short-term labor supply response to the timing of transfer payments: Evidence from the SNAP program," Labour Economics, Elsevier, vol. 91(C).
    3. Mindy Marks & Silvia Prina & Roy Gernhardt, 2025. "Government shutdown and SNAP disbursements: effects on household expenditures," Review of Economics of the Household, Springer, vol. 23(1), pages 295-326, March.
    4. Erik Hembre & Katherine McElroy & Shogher Ohannessian, 2024. "Supplemental Nutrition Assistance Program and food expenditures: Evaluating California's cash‐out policy," Contemporary Economic Policy, Western Economic Association International, vol. 42(3), pages 544-573, July.
    5. Colin Gray & Adam Leive & Elena Prager & Kelsey Pukelis & Mary Zaki, 2023. "Employed in a SNAP? The Impact of Work Requirements on Program Participation and Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 306-341, February.
    6. Flores-Lagunes, Alfonso & Jales, Hugo B. & Liu, Judith & Wilson, Norbert L., 2023. "Moving Policies Toward Racial and Ethnic Equality: The Case of the Supplemental Nutrition Assistance Program," GLO Discussion Paper Series 1272, Global Labor Organization (GLO).
    7. Wu, Derek & Meyer, Bruce D., 2023. "Certification and Recertification in Welfare Programs: What Happens When Automation Goes Wrong?," IZA Discussion Papers 16294, Institute of Labor Economics (IZA).
    8. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).
    9. repec:ags:aaea22:335863 is not listed on IDEAS
    10. Aimee Chabot & Maximilian Hell, 2023. "Using Technology and Iterative Research to Strengthen the Social Safety Net," The ANNALS of the American Academy of Political and Social Science, , vol. 706(1), pages 256-275, March.

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