Are SNAP benefits adequate? A geographical and food expenditure decomposition

Davis, George C.; You, Wen; Yang, Yanliang

doi:10.1016/j.foodpol.2020.101917

Cited by 12 publications

(10 citation statements)

References 20 publications

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“…22 The Supplemental Nutrition Assistance Program (SNAP) aims to address food insecurity by providing electronic debit cards that can be spent on food, but in an amount that is often insufficient to cover all food needs in a non-pandemic context. 23 Increased food prices and food stock disruptions during the COVID-19 pandemic 24 may have further reduced food affordability and availability for people with SNAP benefits in 2020 and 2021. During the pandemic, Congress allowed states to extend the duration of eligibility and provide the maximum amount to all participants.…”

Section: Introductionmentioning

confidence: 99%

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State minimum wage, paid sick leave, and food insufficiency during the COVID-19 pandemic

Raifman

Nsoesie

Dean

et al. 2021

Preprint

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Introduction People in low-income households face a disproportionate burden of health and economic consequences brought on by the COVID-19 pandemic, including COVID-19 and food insufficiency. State minimum wage and paid sick leave policies may affect whether people are vulnerable to employment and health shocks to income and affect food insufficiency. Methods We evaluated the relationship between state minimum wage policies and the outcome of household food insufficiency among participants younger than 65 during the COVID-19 pandemic. We used data from biweekly, state representative Census Pulse surveys conducted between August 19 and December 21, 2020. We conducted analyses in the full population under age 65 years, who are most likely to work, and in households with children. The primary exposure was state minimum wage policies in four categories: less than $8.00, $8.00 to $9.99, $10.00 to $11.99, and $12.00 or more. A secondary exposure was missing work due to COVID-19, interacted with whether participants reported not having paid sick leave. Food insufficiency was defined as sometimes or often not having enough to eat in the past seven days. Very low child food sufficiency was defined as children sometimes or often not eating enough in the past seven days because of inability to afford food. We conducted a multivariable modified Poisson regression analysis to estimate adjusted prevalence ratios and marginal effects. We clustered standard errors by state. To adjust for state health and social programs, we adjusted for health insurance and receipt of supplemental nutrition assistance program benefits, unemployment insurance, and stimulus payments. We conducted subgroup analyses among populations most likely to be affected by minimum wage policies: Participants who reported any work in the past seven days, who reported <$75,000 in 2019 household income, or who had a high school education or less. We conducted falsification tests among participants less likely to be directly affected by policies, ≥65 years or with >$75,000 in 2019 household income. Results In states with a minimum wage of less than $8.00, 14.3% of participants under age 65 and 16.6% of participants in households with children reported household food insufficiency, while 10.3% of participants reported very low child food sufficiency. A state minimum wage of $12 or more per hour was associated with a 1.83 percentage point reduction in the proportion of households reporting food insufficiency relative to a minimum wage of less than $8.00 per hour (95% CI: -2.67 to -0.99 percentage points). In households with children, a state minimum wage of $12 or more per hour was associated with a 2.13 percentage point reduction in household food insufficiency (95% CI: -3.25 to -1.00 percentage points) and in very low child food sufficiency (-1.16 percentage points, 95% CI: -1.69 to -0.63 percentage points) relative to a state minimum wage of less than $8.00 per hour. Minimum wages of $8.00 to $9.99 and $10.00 to $11.99 were not associated with changes in child food insufficiency or very low child food sufficiency relative to less than $8.00 per hour. Subgroup analyses and sensitivity analyses were consistent with the main results. Estimates were of a lesser magnitude (<0.6 percentage points) in populations that should be less directly affected by state minimum wage policies. Missing work due to COVID-19 without paid sick leave was associated with a 5.72 percentage point increase in the proportion of households reporting food insufficiency (95% CI: 3.59 to 7.85 percentage points). Discussion Food insufficiency is high in all households and even more so in households with children during the COVID-19 pandemic. Living in a state with at least a $12 minimum wage was associated with a decrease in the proportion of people reporting food insufficiency during the COVID-19 pandemic. Not having paid leave was associated with increases in food insufficiency among people who reported missing work due to COVID-19 illness. Policymakers may wish to consider raising the minimum wage and paid sick leave as an approach to reducing food insufficiency during and after the COVID-19 pandemic.

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Section: Introductionmentioning

confidence: 99%

“…Other policies that shape funds available to people in low-income households may also affect food insufficiency given that SNAP alone is typically not enough. 20 Multiple studies indicate that unemployment insurance coverage 25,26 and amount 26,27 were associated with reduced food insufficiency during the COVID-19 pandemic.…”

Section: Introductionmentioning

confidence: 99%

State minimum wage, paid sick leave, and food insufficiency during the COVID-19 pandemic

Raifman

Nsoesie

Dean

et al. 2021

Preprint

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“…4 Recent estimates of low-income US households' marginal propensity to consume food (MPCF) out of cash income are at or below 0.1. 5 Thus, if households obey traditional demand theory, the program mainly increases nonfood spending.…”

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confidence: 99%

How are SNAP Benefits Spent? Evidence from a Retail Panel

Hastings

Shapiro

2018

SSRN Journal

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and from comments by discussant J.P. Dubé. We thank our dedicated research assistants for their contributions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w23112.ack NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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confidence: 99%

“…Therefore, f * = arg max f U ( f, y + b − f ) . SeeMankiw (2000) andBrowning and Zupan (2004) for a textbook treatment 5. Castner and Mabli (2010) estimate an MPCF out of cash income of 0.07 for SNAP participants Hoynes and Schanzenbach (2009).…”

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confidence: 99%

How Are SNAP Benefits Spent? Evidence from a Retail Panel

Hastings

Shapiro

2018

American Economic Review

155

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We use a novel retail panel with detailed transaction records to study the effect of the Supplemental Nutrition Assistance Program (SNAP) on household spending. We use administrative data to motivate three approaches to causal inference. The marginal propensity to consume SNAP-eligible food (MPCF) out of SNAP benefits is 0.5 to 0.6. The MPCF out of cash is much smaller. These patterns obtain even for households for whom SNAP benefits are economically equivalent to cash because their benefits are below their food spending. Using a semiparametric framework, we reject the hypothesis that households respect the fungibility of money. A model with mental accounting can match the facts. (JEL D12, H75, I12, I18, I38)

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Are SNAP benefits adequate? A geographical and food expenditure decomposition

Cited by 12 publications

References 20 publications

State minimum wage, paid sick leave, and food insufficiency during the COVID-19 pandemic

State minimum wage, paid sick leave, and food insufficiency during the COVID-19 pandemic

How are SNAP Benefits Spent? Evidence from a Retail Panel

How Are SNAP Benefits Spent? Evidence from a Retail Panel

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