The Social Safety Net in the Wake of COVID-19

Marianne Bitler, Hilary Hoynes and Diane Schanzenbach

No 27796, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The COVID-19 crisis has led to spiking unemployment rates with disproportionate impacts on low-income families. School and child-care center closures have also meant lost free- and reduced-price school meals. Food prices have increased sharply leading to reduced purchasing power for families’ limited income. The Families First Coronavirus Act and the CARES Act included robust responses including expansions to unemployment insurance (expansions in eligibility and $600 per week supplement), a one-time payment of $1,200 per adult and $500 per dependent, an increase in SNAP payments, and the launch of the Pandemic EBT program to replace lost school meals. Despite these efforts, real time data show significant distress – notably food insecurity rates have increased almost three times over the pre-COVID rates and food pantry use has also spiked. In this paper, we explore why there is so much unmet need despite a robust policy response. We provide evidence for three explanations: (1) timing - relief came with a substantial delay (due to overwhelmed UI systems/need to implement new programs); (2) magnitude – payments outside UI are modest; and (3) coverage gaps – access is lower for some groups and other groups are statutorily excluded.

JEL-codes: H53 I3 I38 (search for similar items in EconPapers)
Date: 2020-09
New Economics Papers: this item is included in nep-ias
Note: CH PE
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Citations: View citations in EconPapers (55)

Published as Marianne P. Bitler & Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2020. "The Social Safety Net in the Wake of COVID-19," Brookings Papers on Economic Activity, vol 2020(2), pages 119-158.

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