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Title: The Welfare Effects of Eligibility Expansions: Theory and Evidence from SNAP ⇤

Citation Type: Miscellaneous

Publication Year: 2021

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Abstract: We study the U.S. rollout of eligibility expansions in the Supplemental Nutrition Assistance Program and show that expanding eligibility raises enrollment among the inframarginal (always-eligible) population. This evidence motivates a general model of the optimal eligibility threshold for welfare programs with incomplete take-up, where inframarginal take-up responds to that threshold. The optimal threshold depends on the size of the inframarginal response and the extent to which information frictions and stigma influence that response. An online experiment provides evidence that the eligibility threshold affects stigma. Given our empirical results and certain modeling assumptions, the SNAP eligibility threshold is lower than optimal.

Url: https://www.charlierafkin.com/papers/ar_eligibility.pdf

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Authors: Anders, Jenna; Rafkin, Charlie

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Data Collections: IPUMS USA

Topics: Poverty and Welfare

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