What Impact does Old-age Pension Receipt Have on the Use of Public Assistance Programs Among the Elderly?

Norma Coe and April Yanyuan Wu

A chapter in Safety Nets and Benefit Dependence, 2014, vol. 39, pp 259-295 from Emerald Group Publishing Limited

Abstract: This article estimates the causal effect of benefit levels on elderly enrollment in two public assistance programs by using the variation in eligibility and benefit levels introduced by old-age pension benefits. The findings are threefold. First, the low take-up among the elderly is not driven by changes in the composition of the eligible pool. Second, old-age pensions decrease the use of public assistance programs by decreasing the gain of participation – the potential benefits. Third, we find program-specific responses: a $100 increase in potential Supplemental Security Income (SSI) benefits leads to a 4–6 percentage point increase in the take-up probability, but we are unable to estimate consistent results for the Supplemental Nutrition Assistance Program (SNAP). Together with the fact that eligible individuals who begin receiving old-age pensions continue to participate in SSI more often than they maintain SNAP enrollment, the different program response could be due to preference for cash over in-kind transfers.

Keywords: Old-age pension; Supplemental Nutrition Assistance Program; Supplemental Security Income; take-up decisions; H53; H55; I3 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rleczz:s0147-912120140000039007

DOI: 10.1108/S0147-912120140000039007

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