Effects of Food Stamp and TANF Policies on Food Stamp Receipt

Abstract

This article uses data from the period between 1996 and 2003 to measure how the food stamp receipt of a low‐income population is affected by specific Food Stamp Program (FSP) policies, welfare policies, the minimum wage, and the Earned Income Tax Credit. It examines 27 specific program rules that are hypothesized to affect food stamp receipt. The results provide strong evidence that food stamp receipt increases with leniency of vehicle exemption policies, leniency of immigrant eligibility rules, length of recertification periods, and expansion of categorical eligibility. Findings also suggest that food stamp receipt is reduced by the use of biometric technology, which is employed in part to prevent fraud. In addition, the results provide some, but less consistent, evidence that the electronic benefit transfer program and outreach spending increase food stamp receipt.