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Why Leave Benefits on the Table? Evidence from SNAP

Author

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  • Colin Gray

    (Massachusetts Institute of Technology)

Abstract
Studies of take up in social insurance programs rarely distinguish between initial enrollment and retention of beneficiaries. This paper shows that retention plays a meaningful role in incomplete take up: despite knowledge of and eligibility for a near-cash public benefit, many participants exit the program rather than complete administrative requirements. Using administrative data on the Supplemental Nutrition Assistance Program (SNAP) for multiple states, I show that over half of entering households exit SNAP within one year of entry. Exits are concentrated in key reporting and recertification months, when participants must submit substantial paperwork in order to remain on the program. Combining administrative SNAP and Unemployment Insurance (UI) records from the state of Michigan, I provide evidence that mechanical eligibility changes cannot explain the extent of program exit. Finally, I demonstrate a substantial effect of administrative requirements on retention by studying the staggered rollout of Michigan’s online case management tool, which reduced exits for likely eligible applicants by approximately 10 percent around these key dates.

Suggested Citation

  • Colin Gray, 2018. "Why Leave Benefits on the Table? Evidence from SNAP," Upjohn Working Papers 18-288, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:18-288
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    References listed on IDEAS

    as
    1. Zhuan Pei, 2017. "Eligibility Recertification and Dynamic Opt-In Incentives in Income-Tested Social Programs: Evidence from Medicaid/CHIP," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 241-276, February.
    2. Bruce D. Meyer & Nikolas Mittag, 2015. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net," Upjohn Working Papers 15-242, W.E. Upjohn Institute for Employment Research.
    3. Justine Hastings & Jesse M. Shapiro, 2018. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," American Economic Review, American Economic Association, vol. 108(12), pages 3493-3540, December.
    4. Manasi Deshpande & Yue Li, 2019. "Who Is Screened Out? Application Costs and the Targeting of Disability Programs," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 213-248, November.
    5. Nichols, Albert L & Zeckhauser, Richard J, 1982. "Targeting Transfers through Restrictions on Recipients," American Economic Review, American Economic Association, vol. 72(2), pages 372-377, May.
    6. Henrik Jacobsen Kleven & Wojciech Kopczuk, 2011. "Transfer Program Complexity and the Take-Up of Social Benefits," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 54-90, February.
    7. Avraham Ebenstein & Kevin Stange, 2010. "Does inconvenience explain low take-up? Evidence from unemployment insurance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 111-136.
    8. Eric P. Bettinger & Bridget Terry Long & Philip Oreopoulos & Lisa Sanbonmatsu, 2012. "The Role of Application Assistance and Information in College Decisions: Results from the H&R Block Fafsa Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1205-1242.
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    Cited by:

    1. Justine Hastings & Ryan Kessler & Jesse M. Shapiro, 2021. "The Effect of SNAP on the Composition of Purchased Foods: Evidence and Implications," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 277-315, August.
    2. Colin Gray & Adam Leive & Elena Prager & Kelsey Pukelis & Mary Zaki, 2023. "Employed in a SNAP? The Impact of Work Requirements on Program Participation and Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 306-341, February.
    3. Colin Gray & Adam Leive & Elena Prager & Kelsey Pukelis & Mary Zaki, 2023. "Employed in a SNAP? The Impact of Work Requirements on Program Participation and Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 306-341, February.

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    More about this item

    Keywords

    social insurance; food assistance; program take up; public finance;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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