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The Income Volatility See-Saw: Implications for School Lunch

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  • Newman, Constance

Abstract

Income volatility challenges the effectiveness of the safety net that USDA food assistance programs provide low-income families. This study examines income volatility among households with children and the implications of volatility for eligibility in the National School Lunch Program (NSLP). The results show that income volatility was higher for successively lower income groups and that the major determinants of changes in NSLP eligibility were changes in total household hours worked and the share of working adults. Income volatility in two-thirds of lower income households caused one or more changes in their monthly NSLP eligibility during the year. An estimated 27 percent of households that were income eligible for subsidized lunches at the beginning of the school year were no longer income eligible for the same level of subsidy by December due to monthly income changes.

Suggested Citation

  • Newman, Constance, 2006. "The Income Volatility See-Saw: Implications for School Lunch," Economic Research Report 7237, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:7237
    DOI: 10.22004/ag.econ.7237
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    References listed on IDEAS

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    1. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
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    5. Robert G. St. Pierre & Michael J. Puma, 1992. "Controlling federal expenditures in the national school lunch program: The relationship between changes in household eligibility and federal policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(1), pages 42-57.
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    Cited by:

    1. Neil Bania & Laura Leete, 2009. "Monthly household income volatility in the U.S., 1991/92 vs. 2002/03," Economics Bulletin, AccessEcon, vol. 29(3), pages 2100-2112.
    2. Dharmasena, Senarath & Ishdorj, Ariun & Capps, Oral, Jr. & Bessler, David A., 2014. "Dynamics of Macroeconomic Shocks on Food Assistance Programs in the United States," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162368, Southern Agricultural Economics Association.
    3. repec:pri:crcwel:wp08-06-ff is not listed on IDEAS
    4. Daphne C. Hernandez & Kathleen M. Ziol-Guest, 2008. "Family Structure and Income Volatility: Association with Food Stamp Program Participation," Working Papers 1018, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    5. Oliveira, Victor, 2007. "Informing Food and Nutrition Assistance Policy: 10 Years of Research at ERS," Miscellaneous Publications 262274, United States Department of Agriculture, Economic Research Service.
    6. Waehrer, Geetha & Deb, Partha & Decker, Sandra L., 2015. "Did the 2009 American Recovery and Reinvestment Act affect dietary intake of low-income individuals?," Economics & Human Biology, Elsevier, vol. 19(C), pages 170-183.
    7. Daphne Hernandez & Kathleen Ziol-Guest, 2009. "Income Volatility and Family Structure Patterns: Association with Stability and Change in Food Stamp Program Participation," Journal of Family and Economic Issues, Springer, vol. 30(4), pages 357-371, December.
    8. Todd, Jessica E. & Newman, Constance & Ver Ploeg, Michele, 2010. "Changing Participation in Food Assistance Programs Among Low-Income Children After Welfare Reform," Economic Research Report 58613, United States Department of Agriculture, Economic Research Service.
    9. Laura Leete & Neil Bania, 2010. "The effect of income shocks on food insufficiency," Review of Economics of the Household, Springer, vol. 8(4), pages 505-526, December.
    10. Holmes, Madilyn & Dharmasena, Senarath, 2016. "Dynamics Of Macroeconomic Shocks On Food Assistace Programs In The United States," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229953, Southern Agricultural Economics Association.
    11. Monahan, Emma Kahle, 2020. "Income instability and child maltreatment: Exploring associations and mechanisms," Children and Youth Services Review, Elsevier, vol. 108(C).
    12. Brown, Alyssa, 2024. "Who takes up a free lunch? Summer Food Service Program availability and household grocery food spending," Food Policy, Elsevier, vol. 123(C).

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