Social Safety Net Programs, Human Capital, and Behavioral Biases: Evidence from Supplemental Security Income (SSI)

Little is known about how public assistance programs affect the financial well-being and credit access of low-income families. We propose constructing a merged dataset using Supplemental Security Income administrative data from the Social Security Administration, bankruptcy records, individual credit reports, and fringe financial services. We will use a regression discontinuity design to isolate the causal effect of SSI enrollment on a rich set of financial outcomes. Our analysis will demonstrate how SSI benefits affect the financial well-being of recipient households, and shed light on the mechanisms through which government benefits interact with private credit markets.