The Disenrollment and Labor Supply Effects of SNAP Work Requirements
Working Paper 32441
DOI 10.3386/w32441
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Neoclassical economic theory predicts that ordeals, such as work requirements, improve transfer program targeting. Means-tested transfer programs in the U.S. are increasingly adding or considering adding work requirements. We provide the first causal estimates of the two largest work requirements in the Supplemental Nutrition Assistance Program (SNAP). We leverage the fact that once the youngest child in the household turns six, many heads of household become subject to these requirements. Using novel administrative SNAP data linked with state administrative earnings records, we find these requirements have no impacts on labor supply, but important SNAP disenrollment effects that reduce the targeting of SNAP benefits.