Income vs. Asset Tests in the Safety Net: Impacts on Access, Targeting, and Costs in SNAP

Jeehoon Han () and Derek Wu ()
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Jeehoon Han: Baylor University
Derek Wu: University of Virginia

No 18712, IZA Discussion Papers from IZA Network @ LISER

Abstract: Means-tested programs worldwide screen applicants on income and assets, yet little is known about which screen does more to expand access and target benefits effectively. We provide the first within-program comparison, exploiting the adoption of Broad-Based Categorical Eligibility in SNAP. Raising income thresholds reached more disadvantaged households than relaxing asset tests, even as it expanded access more. Half of the enrollment gain came from inframarginal households previously eligible but unenrolled. Average benefits per enrollee were similar across expansions. Simulations show that incorporating asset information into benefit formulas could improve targeting, pointing to an undervalued role for assets in program design.

Keywords: SNAP; means-tested transfers; income and asset tests; program eligibility; targeting (search for similar items in EconPapers)
JEL-codes: D31 H53 I38 (search for similar items in EconPapers)
Date: 2026-06
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