The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers

Jason Cook and Chloe East

No 31307, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Canonical economic theory clearly predicts means-tested transfers will reduce work. We provide new evidence on this question in the context of the Supplemental Nutrition Assistance Program (SNAP)—the backbone of the U.S. safety net. It is challenging to identify the causal effects of SNAP, so we introduce an examiner design based on conditional random assignment of SNAP applicants to caseworkers using rich administrative data. We empirically establish that caseworkers help determine whether applicants receive benefits. We then use this as an instrument for SNAP receipt to produce new, comprehensive and generalizable evidence of the labor supply effects of modern SNAP. Our results shed light on why the canonical theory’s predictions might not always bear out.

JEL-codes: H51 H53 I38 J22 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-lma and nep-pbe
Note: CH EH LS PE
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Working Paper: The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers (2024)
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