Financial repercussions of SNAP work requirements

• 成果类型: Article
• 署名作者: Dodini, Samuel; Larrimore, Jeff; Tranfaglia, Anna
• 署名单位: Norwegian School of Economics (NHH); Federal Reserve System - USA; Federal Reserve System Board of Governors; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.105034
• 发表日期: 2024
• 关键词: Work requirements; SNAP benefits; Consumer credit

摘要

This paper considers individual-level credit responses after the implementation of work requirements for SNAP benefits. It does so by exploiting county-level variation in the reintroduction of work requirements after the Great Recession. We find that new SNAP work requirements lead more people to seek out new credit and lead to an increase in credit account openings. New work requirements also result in an increase in total outstanding credit balances as well as an increase in past due balances. These findings suggest that individuals are turning to credit and debt products to cover expenses after losing SNAP eligibility.