Work incentives and the Food Stamp Program

Hilary Williamson Hoynes*, Diane Whitmore Schanzenbach

*Corresponding author for this work

Research output: Contribution to journalArticle

42 Citations (Scopus)

Abstract

Labor supply theory makes strong predictions about how the introduction or expansion of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find reductions in employment and hours worked when food stamps are introduced. The reductions are concentrated among families headed by single woman.

Original languageEnglish (US)
Pages (from-to)151-162
Number of pages12
JournalJournal of Public Economics
Volume96
Issue number1-2
DOIs
StatePublished - Feb 1 2012

Fingerprint

Food Stamp Program
Work incentives
Labor supply
Incentive effect
Extensive margin
Food stamps
Intensive margin
Income
Welfare programs
Prediction
Cash
Social welfare
Experimental method
Work effort
Hours worked

Keywords

  • Labor supply
  • Welfare policy

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

Hoynes, Hilary Williamson ; Schanzenbach, Diane Whitmore. / Work incentives and the Food Stamp Program. In: Journal of Public Economics. 2012 ; Vol. 96, No. 1-2. pp. 151-162.
@article{cf60fbaf26f24018937d0a63959d96d5,
title = "Work incentives and the Food Stamp Program",
abstract = "Labor supply theory makes strong predictions about how the introduction or expansion of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find reductions in employment and hours worked when food stamps are introduced. The reductions are concentrated among families headed by single woman.",
keywords = "Labor supply, Welfare policy",
author = "Hoynes, {Hilary Williamson} and Schanzenbach, {Diane Whitmore}",
year = "2012",
month = "2",
day = "1",
doi = "10.1016/j.jpubeco.2011.08.006",
language = "English (US)",
volume = "96",
pages = "151--162",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier",
number = "1-2",

}

Work incentives and the Food Stamp Program. / Hoynes, Hilary Williamson; Schanzenbach, Diane Whitmore.

In: Journal of Public Economics, Vol. 96, No. 1-2, 01.02.2012, p. 151-162.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Work incentives and the Food Stamp Program

AU - Hoynes, Hilary Williamson

AU - Schanzenbach, Diane Whitmore

PY - 2012/2/1

Y1 - 2012/2/1

N2 - Labor supply theory makes strong predictions about how the introduction or expansion of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find reductions in employment and hours worked when food stamps are introduced. The reductions are concentrated among families headed by single woman.

AB - Labor supply theory makes strong predictions about how the introduction or expansion of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find reductions in employment and hours worked when food stamps are introduced. The reductions are concentrated among families headed by single woman.

KW - Labor supply

KW - Welfare policy

UR - http://www.scopus.com/inward/record.url?scp=80054994594&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=80054994594&partnerID=8YFLogxK

U2 - 10.1016/j.jpubeco.2011.08.006

DO - 10.1016/j.jpubeco.2011.08.006

M3 - Article

VL - 96

SP - 151

EP - 162

JO - Journal of Public Economics

JF - Journal of Public Economics

SN - 0047-2727

IS - 1-2

ER -