The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers
Working Paper 31307
DOI 10.3386/w31307
Issue Date
We are the first to document that Supplemental Nutrition Assistance Program (SNAP) caseworker behavior impacts program receipt, likely due to differing levels of helpfulness in navigating the complicated application process. We use the conditional random assignment of caseworkers as an instrument for SNAP receipt to assess the impact of SNAP on work decisions. Two-thirds of SNAP applicants do not work before applying and experience no change in work if granted SNAP. Those working beforehand decrease work temporarily. The canonical, static labor supply model cannot fully explain these results, but taking account of other reasons individuals do not work can.