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The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers

Author

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  • Jason B. Cook
  • Chloe N. East

Abstract

Canonical economic theory clearly predicts means-tested transfers will reduce work. We provide new evidence on this question in the context of the Supplemental Nutrition Assistance Program (SNAP)—the backbone of the U.S. safety net. It is challenging to identify the causal effects of SNAP, so we introduce an examiner design based on conditional random assignment of SNAP applicants to caseworkers using rich administrative data. We empirically establish that caseworkers help determine whether applicants receive benefits. We then use this as an instrument for SNAP receipt to produce new, comprehensive and generalizable evidence of the labor supply effects of modern SNAP. Our results shed light on why the canonical theory’s predictions might not always bear out.

Suggested Citation

  • Jason B. Cook & Chloe N. East, 2023. "The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers," NBER Working Papers 31307, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31307
    Note: CH EH LS PE
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    Cited by:

    1. Marks, Mindy & Prina, Silvia & Tahaj, Redina, 2024. "Short-term labor supply response to the timing of transfer payments: Evidence from the SNAP program," Labour Economics, Elsevier, vol. 91(C).
    2. Dalla-Zuanna, Antonio & Liu, Kai, 2025. "Using the MVPF to Allocate Treatment Under Imperfect Compliance and Supply-Side Constraints," IZA Discussion Papers 18259, IZA Network @ LISER.
    3. Dodini, Samuel & Larrimore, Jeff & Tranfaglia, Anna, 2024. "Financial repercussions of SNAP work requirements," Journal of Public Economics, Elsevier, vol. 229(C).

    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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