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Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records

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  • Scherpf, Erik
  • Cerf, Benjamin

Abstract

This study estimates the effect of fluctuations in local labor conditions on the likelihood that existing participants are able to transition out of the Supplemental Nutrition Assistance Program (SNAP). Our primary data are SNAP administrative records from New York (2007–2012) linked to the 2010 Census at the person-level. We further augment these data by linking to industry-specific labor market indicators at the county-level. We find that local labor markets matter for the length of time individuals spend on SNAP, but there is substantial heterogeneity in estimated effects across local industries. While employment growth in industries with small shares of SNAP participants has no impact on SNAP exits, growth in local industries with high shares of SNAP participants, especially food service and retail, significantly increases the likelihood that recipients exit the program. We also observe corresponding increases in entries when these industries experience localized contractions. Notably, estimated industry effects vary across race groups and parental status, with Black Alone non-Hispanic, Hispanic, and mothers benefiting the least from improvements in local labor market conditions. Our models include county fixed effects and time trends, and our results are identified by detrended within-county variation in local labor market conditions. We confirm that our results are not driven by endogenous inter-county mobility, New York City labor markets, or cohort composition effects associated with the Great Recession.

Suggested Citation

  • Scherpf, Erik & Cerf, Benjamin, 2017. "Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records," OSF Preprints q559t, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:q559t
    DOI: 10.31219/osf.io/q559t
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    References listed on IDEAS

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    1. Brittany Bond & J. David Brown & Adela Luque & Amy O’Hara, 2014. "The Nature of the Bias When Studying Only Linkable Person Records: Evidence from the American Community Survey," CARRA Working Papers 2014-08, Center for Economic Studies, U.S. Census Bureau.
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    5. Marianne Bitler & Hilary Hoynes, 2015. "Heterogeneity in the Impact of Economic Cycles and the Great Recession: Effects within and across the Income Distribution," American Economic Review, American Economic Association, vol. 105(5), pages 154-160, May.
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    8. Scott Cody & Laura Castner & James Mabli & Julie Sykes, "undated". "Dynamics of Food Stamp Program Participation, 2001-2003," Mathematica Policy Research Reports 580f5d8bb98c472e9cde860fe, Mathematica Policy Research.
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    11. Cody, Scott & Gleason, Phil & Schechter, Bruce & Satake, Miki & Sykes, Julie, 2005. "Food Stamp Program Entry and Exit: An Analysis of Participation Trends in the 1990s," Contractor and Cooperator Reports 291980, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Sumedha Gupta & Laura Montenovo & Thuy Nguyen & Felipe Lozano‐Rojas & Ian Schmutte & Kosali Simon & Bruce A. Weinberg & Coady Wing, 2023. "Effects of social distancing policy on labor market outcomes," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 166-193, January.
    2. Justine Hastings & Ryan Kessler & Jesse M. Shapiro, 2021. "The Effect of SNAP on the Composition of Purchased Foods: Evidence and Implications," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 277-315, August.
    3. Leanne Giordono & David W. Rothwell & Stephanie Grutzmacher & Mark Edwards, 2022. "Understanding SNAP use patterns among older adults," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 609-634, June.

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