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Age Differences And Macroeconomic Effects On Food Stamp Program Participation

  • 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)

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.

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Paper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 11-2.

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Length: 21 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:pae:wpaper:11-2
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  1. Hilary Williamson Hoynes, 1996. "Local Labor Markets and Welfare Spells: Do Demand Conditions Matter?," NBER Working Papers 5643, National Bureau of Economic Research, Inc.
  2. David C. Ribar, 2005. "Transitions from Welfare and the Employment Prospects of Low-Skill Workers," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 514-533, January.
  3. 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.
  4. 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.
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