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The Social Safety Net in the Wake of COVID-19

Author

Listed:
  • Marianne Bitler
  • Hilary W. Hoynes
  • Diane Whitmore Schanzenbach

Abstract

The COVID-19 crisis has led to spiking unemployment rates with disproportionate impacts on low-income families. School and child-care center closures have also meant lost free- and reduced-price school meals. Food prices have increased sharply leading to reduced purchasing power for families’ limited income. The Families First Coronavirus Act and the CARES Act included robust responses including expansions to unemployment insurance (expansions in eligibility and $600 per week supplement), a one-time payment of $1,200 per adult and $500 per dependent, an increase in SNAP payments, and the launch of the Pandemic EBT program to replace lost school meals. Despite these efforts, real time data show significant distress – notably food insecurity rates have increased almost three times over the pre-COVID rates and food pantry use has also spiked. In this paper, we explore why there is so much unmet need despite a robust policy response. We provide evidence for three explanations: (1) timing - relief came with a substantial delay (due to overwhelmed UI systems/need to implement new programs); (2) magnitude – payments outside UI are modest; and (3) coverage gaps – access is lower for some groups and other groups are statutorily excluded.

Suggested Citation

  • Marianne Bitler & Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2020. "The Social Safety Net in the Wake of COVID-19," NBER Working Papers 27796, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27796
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    References listed on IDEAS

    as
    1. Jeehoon Han & Bruce D. Meyer & James X. Sullivan, 2020. "Income and Poverty in the COVID-19 Pandemic," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 85-118.
    2. Marianne Bitler & Hilary Hoynes & Elira Kuka, 2017. "Do In-Work Tax Credits Serve as a Safety Net?," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 319-350.
    3. Marianne Bitler & Hilary Hoynes, 2016. "The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 403-444.
    4. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2018. "Safety Nets Investments in Children," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 89-150.
    5. Hilary Hoynes & Douglas L. Miller & Jessamyn Schaller, 2012. "Who Suffers during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 27-48, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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