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Income vs. Asset Tests in the Safety Net: Impacts on Access, Targeting, and Costs in SNAP

Author

Listed:
  • Han, Jeehoon

    (Baylor University)

  • Wu, Derek

    (University of Virginia)

Abstract

Means-tested programs worldwide screen applicants on income and assets, yet little is known about which screen does more to expand access and target benefits effectively. We provide the first within-program comparison, exploiting the adoption of Broad-Based Categorical Eligibility in SNAP. Raising income thresholds reached more disadvantaged households than relaxing asset tests, even as it expanded access more. Half of the enrollment gain came from inframarginal households previously eligible but unenrolled. Average benefits per enrollee were similar across expansions. Simulations show that incorporating asset information into benefit formulas could improve targeting, pointing to an undervalued role for assets in program design.

Suggested Citation

  • Han, Jeehoon & Wu, Derek, 2026. "Income vs. Asset Tests in the Safety Net: Impacts on Access, Targeting, and Costs in SNAP," IZA Discussion Papers 18712, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18712
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    Keywords

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    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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