Use of Supplemental Nutritional Assistance Program Benefits by Unemployment Insurance Applicants in Michigan during the Great Recession
AbstractDuring the Great Recession, both the Supplementary Nutrition Assistance Program (SNAP) and the federal-state unemployment insurance (UI) program experienced dramatic increases in participation. Using Michigan program administrative data on all SNAP (2006-2011) recipients and all UI (2001-2010) applicants, we examine SNAP use before and after UI application. Both past and future receipts of SNAP are highly negatively correlated with meeting UI income and job separation eligibility requirements. Unemployment insurance applicants with insufficient wage credits or job separations because of quitting or employer discharge are much more likely to have received SNAP in the past. Furthermore, such UI applicants are also more likely to receive SNAP soon after applying for UI benefits. The data also indicate that as of the start of the Great Recession, UI applicants who received SNAP subsequent to UI filing began receiving those benefits sooner compared with UI applicants prior to the downturn. The models also suggest that SNAP receipt after UI application was higher among ineligible UI applicants, applicants who quit or were fired from prior jobs, those with prior recent SNAP receipt, prime age workers, females, those with education of less than a high school diploma, those having three to five years’ prior job tenure, and those with a separating job in retail trade, health care, or hospitality.
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Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 14-210.
Date of creation: Feb 2014
Date of revision:
Unemployment insurance; food stamps; supplemental nutrition assistance program; job loss; self sufficiency; economic security; safety net;
Find related papers by JEL classification:
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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- Christopher J. O'Leary, 2011. "Benefit Payment Costs of Unemployment Insurance Modernization: Estimates Based on Kentucky Administrative Data," Upjohn Working Papers and Journal Articles 11-172, W.E. Upjohn Institute for Employment Research.
- Hanson, Kenneth & Andrews, Margaret S., 2009. "State Variations in the Food Stamp Benefit Reduction Rate for Earnings: Cross-Program Effects from TANF and SSI Cash Assistance," Economic Information Bulletin 58315, United States Department of Agriculture, Economic Research Service.
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