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Do SNAP participants expand non-food spending when they receive more SNAP Benefits?—Evidence from the 2009 SNAP benefits increase

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  • Kim, Jiyoon

Abstract

This study examines the expenditure response to the largest increase in Supplemental Nutrition Assistance Program benefits, instituted in April 2009. Investigating the effects in both food and non-food spending categories, I find that the rise in SNAP benefits increased not only food at home expenditures, but also housing, transportation, and education expenditures of SNAP households relative to those of non-SNAP households. Specifically, the SNAP benefit increase leads to the reduced out-of-pocket spending on food for infra-marginal SNAP recipients, and the freed up resources allowed households with bounded budgets to fund other essential needs, such as paying mortgage, rent, utility fee, transportation expenses as well as tuition. Examining non-food expenditures provides a more complete picture of the impact of the SNAP benefit increase by shedding light on the spillover effect of the policy change. The result also derives policy implication on ongoing debate about SNAP allotment generosity.

Suggested Citation

  • Kim, Jiyoon, 2016. "Do SNAP participants expand non-food spending when they receive more SNAP Benefits?—Evidence from the 2009 SNAP benefits increase," Food Policy, Elsevier, vol. 65(C), pages 9-20.
    • Handle: RePEc:eee:jfpoli:v:65:y:2016:i:c:p:9-20
    DOI: 10.1016/j.foodpol.2016.10.002
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    Cited by:

    1. Paul A. Lewin & Bruce A. Weber, 2020. "Distributional impacts of food assistance: How SNAP payments to the rural poor affect incomes in the urban core," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1281-1300, October.
    2. Wang, Julia Shu-Huah & Zhao, Xi & Nam, Jaehyun, 2021. "The effects of welfare participation on parenting stress and parental engagement using an instrumental variables approach: Evidence from the Supplemental Nutrition Assistance Program," Children and Youth Services Review, Elsevier, vol. 121(C).
    3. Scharadin, Benjamin, 2022. "The efficacy of the dependent care deduction at maintaining diet quality," Food Policy, Elsevier, vol. 107(C).
    4. Lee, Yu Na & Chau, Nancy & Just, David R., 2019. "Producer group participation in the trade adjustment assistance program for farmers before and after the American Recovery and Reinvestment Act of 2009," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    5. Lee, Ji Yong & Nayga Jr, Rodolfo M. & Jo, Young & Restrepo, Brandon J., 2022. "Time use and eating patterns of SNAP participants over the benefit month," Food Policy, Elsevier, vol. 106(C).
    6. Leschewski, Andrea M. & Weatherspoon, Dave D., 2017. "SNAP Household Food Expenditures Using Non-SNAP Payment Methods," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259139, Agricultural and Applied Economics Association.
    7. Burney, Shaheer, 2018. "In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption," Food Policy, Elsevier, vol. 75(C), pages 134-146.
    8. Adam M. Lippert & Barrett A. Lee, 2021. "Adult and Child Food Insecurity Among Homeless and Precariously-Housed Families at the Close of the Twentieth Century," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(2), pages 231-253, April.
    9. Ahmad Zia Wahdat, 2022. "Economic Impact Payments and Household Food Insufficiency during COVID-19: The Case of Late Recipients," Economics of Disasters and Climate Change, Springer, vol. 6(3), pages 451-469, November.
    10. Katare, Bhagyashree & Binkley, James K. & Chen, Kaiyan, 2021. "Nutrition and diet quality of food at home by Supplemental Nutrition Assistance Program (SNAP) status," Food Policy, Elsevier, vol. 105(C).
    11. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).
    12. Todd, Jessica E. & Gregory, Christian, 2018. "Changes in Supplemental Nutrition Assistance Program real benefits and daily caloric intake among adults," Food Policy, Elsevier, vol. 79(C), pages 111-120.
    13. Zhao, Xi & Wang, Julia Shu-Huah, 2021. "The effects of multiple welfare program participatifon on educational expenditures and time use: Evidence from the social safety net in China," Children and Youth Services Review, Elsevier, vol. 131(C).

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    More about this item

    Keywords

    SNAP; ARRA; Expenditure response; Food stamp; Consumer expenditure survey;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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