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Means-Tested Transfers in the US: Facts and Parametric Estimates

Author

Listed:
  • Nezih , G.
  • Rauh, C.
  • Ventura, G.

Abstract

How substantial are means-tested transfers in the United States? How have these transfers evolved over time, and what is their impact on the income distribution? We use microdata from the Survey of Income and Program Participation to document the scope of the main means-tested programs for households headed by working-age adults. We report key features of these programs, their generosity, and coverage by household income, marital status, and the number and age of children in the household. We also assess the role of the transfer system in reducing income inequality and document its changing magnitude and effects in recent years. Finally, we provide parametric estimates of transfers as a function of income and household characteristics for use in applied work in macroeconomics and public finance.

Suggested Citation

  • Nezih , G. & Rauh, C. & Ventura, G., 2024. "Means-Tested Transfers in the US: Facts and Parametric Estimates," Janeway Institute Working Papers 2432, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camjip:2432
    Note: cr542
    as

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    File URL: https://www.janeway.econ.cam.ac.uk/working-paper-pdfs/jiwp2432.pdf
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    References listed on IDEAS

    as
    1. Hodges, Leslie & Toossi, Saied & Todd, Jessica E. & Ryan-Claytor, Cayley, 2024. "The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Background, Trends, and Economic Issues, 2024 Edition," Economic Information Bulletin 341637, United States Department of Agriculture, Economic Research Service.
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    1. Nezih , G. & Rauh, C. & Ventura, G., 2024. "Means-Tested Transfers in the US: Facts and Parametric Estimates," Cambridge Working Papers in Economics 2473, Faculty of Economics, University of Cambridge.

    More about this item

    Keywords

    Households; Income Inequality; Means-tested transfers; Parametric Estimates;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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