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Title: The Introduction of the Food Stamp Program: Impacts on Food Consumption and family Well-being

Citation Type: Working Paper

Publication Year: 2006

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Abstract: The food stamp program, serving 24 million persons in 2004 at a cost of $27 billion, is one of themost important income support programs in the United States. Despite this prominence, it hasbeen relatively understudied as it has been difficult for researchers to isolate the causal impact ofthe Food Stamp Program on food spending, nutritional intake, labor supply and other outcomes.Because the program is national, there is not variation in program parameters (such as starkdifferences in state benefit levels or eligibility) that are typically exploited by researchers tomeasure program impacts. In this work, we leverage previously underutilized variation acrosscounties in the date they originally implemented their Food Stamp Program in the 1960s andearly 1970s. Using the Panel Study of Income Dynamics and the 1960, 1970 and 1980Decennial Census, we employ difference-in-difference methods to estimate the impact ofprogram availability on food spending, family income, labor supply, and health. Using thePSID, we find that that the introduction of food stamps leads to decreases in out of pocket foodexpenses, decreases in the propensity to eat out, and overall increases in food consumption. Theresults are consistent with theoretical predictions but are not precisely estimated. Results fromthe Census and PSID show no evidence of a significant work disincentive from introduction offood stamps.

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Authors: Schanzenbach, Diane W.; Hoynes, Hilary W.

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Institution: National Bureau of Economic Research

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Publisher Location: Cambridge, MA

Data Collections: IPUMS USA

Topics: Health, Labor Force and Occupational Structure, Poverty and Welfare

Countries: United States