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Food Assistance Programs and Outcomes in the Context of Welfare Reform

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  • Huffman, Sonya K.
  • Jensen, Helen H.

Abstract

Objective. Food assistance programs play an important role in meeting the basic needs of low-income households. We consider how the Food Stamp Program (FSP), labor force participation, and food insecurity status affect outcomes of low-income households under different program designs and economic conditions.Methods. Data from the Survey of Program Dynamics allow estimation of the effects of participation in FSP, labor market participation, and food insecurity on each other. To obtain estimates of behavioral relationships, we apply a simultaneous equation model and make a set of plausible assumptions about identification to implement the instrumental variable estimation.Results. Food insecurity has a positive effect on FSP participation, while labor force participation reduces FSP participation. Furthermore, FSP participation is more responsive to changes in the amount of program benefits than to changes in nonlabor income. Labor force participation has no direct effect on food insecurity; although not statistically significant, the effect of FSP participation on food insecurity is positive. A higher wage rate decreases FSP participation and increases participation in the labor force.Conclusion. The structural approach, which relies on particular identifying assumptions, allows us to explicity examine linkages among food program participation, labor force participation, and well-being, measured in terms of food insecurity. The results provide evidence that among low-income households, program parameters affect FSP participation, but no evidence that the food assistance reduces food insecurity.

Suggested Citation

  • Huffman, Sonya K. & Jensen, Helen H., 2008. "Food Assistance Programs and Outcomes in the Context of Welfare Reform," ISU General Staff Papers 200803010800001451, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200803010800001451
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    1. repec:mpr:mprres:7859 is not listed on IDEAS
    2. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    3. Zhang, Jun & Yen, Steven T., 2017. "Supplemental Nutrition Assistance Program and food insecurity among families with children," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 52-64.
    4. Zheng, Yuqing & (Jason) Zhao, Jianqiang & Buck, Steven & Burney, Shaheer & Kaiser, Harry M. & Wilson, Norbert L., 2021. "Putting grocery food taxes on the table: Evidence for food security policy-makers," Food Policy, Elsevier, vol. 101(C).
    5. Yingru Li & Dapeng Li & Christian King, 2022. "Food Insufficiency among Job-Loss Households during the Pandemic: The Role of Food Assistance Programs," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    6. Jun Zhang & Yanghao Wang & Steven T. Yen, 2021. "Does Supplemental Nutrition Assistance Program Reduce Food Insecurity among Households with Children? Evidence from the Current Population Survey," IJERPH, MDPI, vol. 18(6), pages 1-15, March.
    7. James Mabli & Jim Ohls & Lisa Dragoset & Laura Castner & Betsy Santos, "undated". "Measuring the Effect of Supplemental Nutrition Assistance Program (SNAP) Participation on Food Security," Mathematica Policy Research Reports 69d901432c7a46779666a240a, Mathematica Policy Research.
    8. Mabli, James & Ohls, Jim & Dragoset, Lisa & Castner, Laura & Santos, Betsy, 2013. "Measuring the Effect of Supplemental Nutrition Assistance Program (SNAP) Participation on Food Security," USDA Miscellaneous 339046, United States Department of Agriculture.
    9. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "Effects of the Supplemental Nutrition Assistance Program on Rural and Urban Areas in Oregon," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235751, Agricultural and Applied Economics Association.
    10. repec:mpr:mprres:8084 is not listed on IDEAS
    11. Wilson, Norbert L. W. & Zheng, Yuqing & Burney, Shaheer & Kaiser, Harry M., 2016. "Do Grocery Food Sales Taxes Cause Food Insecurity?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235324, Agricultural and Applied Economics Association.
    12. James Mabli, "undated". "SNAP Participation and Urban and Rural Food Security," Mathematica Policy Research Reports 99ba5f92f8434d3084c34a7d9, Mathematica Policy Research.
    13. Zhiming Qiu & Chanjin Chung, 2017. "Effects of Food Assistance Programs, Demographic Characteristics, and Living Environments on Children¡¯s Food Insecurity," Applied Economics and Finance, Redfame publishing, vol. 4(4), pages 145-159, July.
    14. Anthony G. Murray & Bradford F. Mills, 2014. "The Impact Of Low-Income Home Energy Assistance Program Participation On Household Energy Insecurity," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 811-825, October.
    15. Irma Arteaga & Colleen Heflin & Leslie Hodges, 2018. "SNAP Benefits and Pregnancy-Related Emergency Room Visits," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(6), pages 1031-1052, December.
    16. Zhao, Jianqiang J. & Kaiser, Harry M. & Zheng, Yuqing, 2022. "Do grocery food taxes incentivize participation in SNAP?," Regional Science and Urban Economics, Elsevier, vol. 95(C).

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