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Age Differences And Macroeconomic Effects On Food Stamp Program Participation

Author

Listed:
  • So Yeong Lim

    (Department of Agricultural Economics, College of Agriculture, Purdue University, W. Lafayette, IN)

  • Susan E. Chen

    (Department of Economics, Finance and Legal Studies, University of Alabama, Tuscaloosa, AL)

  • Brigitte S. Waldorf

    (Department of Agricultural Economics, College of Agriculture, Purdue University, W. Lafayette, IN)

Abstract

This study examines Food Stamp Program (FSP) participation patterns with an emphasis on macroeconomic effects and age differences. Entry into and exit out of the program are examined with data from the Survey of Income and Program Participation 2004 panel using probit techniques. The results indicate that young adults easily enter the FSP but quickly move out. Older people are hesitant to enter the FSP but they stay on longer compared to their younger counterparts. The estimation results confirm the common belief that economic dynamics and FSP participation are negatively related. When the unemployment rates rise, the likelihood of entry and continuation on food stamps increases. This study also documents that the macroeconomic effects on FSP transitions vary by age.

Suggested Citation

  • So Yeong Lim & Susan E. Chen & Brigitte S. Waldorf, 2011. "Age Differences And Macroeconomic Effects On Food Stamp Program Participation," Working Papers 11-2, Purdue University, College of Agriculture, Department of Agricultural Economics.
    • Handle: RePEc:pae:wpaper:11-2
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    References listed on IDEAS

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    1. John M. Fitzgerald, 1995. "Local labor markets and local area effects on welfare duration," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 43-67.
    2. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August.
    3. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
    4. David C. Ribar, 2005. "Transitions from Welfare and the Employment Prospects of Low-Skill Workers," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 514-533, January.
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    Cited by:

    1. George Mutasa, 2012. "Demographic, Community and Macroeconomic Effects on Disability Grant Programme Participation," Working Papers 12155, University of Cape Town, Development Policy Research Unit.

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    More about this item

    Keywords

    Food stamps; age; macroeconomy; transition;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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