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Quasi‐Experimental Evidence on the Effects of Expanding Cash Welfare

Bibliographic Data

ID11682005
AuthorsMatthew Freedman (0000-0003-4732-8540, corresponding author), Yoonjung Kim (0000-0002-2240-3703)
Year2022
Volume41
Issue3
Pages859-890
Publication date2022-03-24
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Policy Analysis and Management (JOURNAL)
Journal identifiersISSN: 0276-8739 • E-ISSN: 1520-6688
PublisherWiley (PUBLISHER • GB)
DOI10.1002/pam.22388
OpenAlexW4221089917
LanguageEN
References cited42

We study the labor supply and consumption responses to cash assistance delivered through the Temporary Assistance to Needy Families (TANF) program in the United States. Exploiting a sharp increase in cash benefit generosity for low‐income single‐parent families in New Hampshire due to a legislative revision to payment calculations, we implement difference‐in‐differences and triple‐differences to estimate the impacts of greater benefits on work behavior as well as on food expenditures and food security. Our results suggest that more generous cash assistance reduces labor supply among likely TANF‐eligible individuals. At the same time, greater cash benefits increase household food spending and reduce the incidence of food insecurity. Our findings speak to individual and family responses to expanded cash assistance in an era in which cash welfare is at historically low levels, is time limited, and imposes work requirements

Business · Cash · Cash transfers · Consumption (sociology · Demographic economics · Economics · Food insecurity · Food security · Generosity · Labour economics · Legislature · Payment · Public economics · Supplemental Nutrition Assistance Program · Welfare · Work (physics · Financial Literacy, Pension, Retirement Analysis · Food Security and Health in Diverse Populations · Gender, Labor, and Family Dynamics · Finance

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