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Sliding into Safety Net Participation: A Unified Analysis across Multiple Programs

Author

Listed:
  • Wu, Derek

    (University of Virginia)

  • Zhang, Jonathan

    (McMaster University)

Abstract

Recipients of government transfers are economically disadvantaged, yet little is known about how their circumstances evolve leading up to program receipt. Using twenty-five years of survey data as well as administrative health records, we establish three new stylized facts around enrollment in the largest safety net programs in the United States. While our focus is on SNAP, Medicaid, and Unemployment Insurance, the patterns generalize to nine major programs. First, market incomes decline around enrollment in almost all studied programs. Second, employment rates decline around program receipt and remain lower after receipt, with these patterns coinciding in part with increased disability and worse health. Third, spousal separations begin to increase prior to program enrollment, even for programs without mechanically related eligibility requirements. Taken together, these analyses provide a comprehensive and identically measured look across programs to demonstrate that households "slide" into safety net participation through multiple pathways.

Suggested Citation

  • Wu, Derek & Zhang, Jonathan, 2023. "Sliding into Safety Net Participation: A Unified Analysis across Multiple Programs," IZA Discussion Papers 16564, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp16564
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    More about this item

    Keywords

    social insurance; means-tested transfers; welfare; program receipt;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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