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Spillover Effects of Financial Aid for Education

Does Post-9/11 GI Bill Reduce Veteran SNAP Participation

Bibliographic Data

ID22158118
AuthorsProjesh Ghosh (0000-0002-5182-7492, Lewin Group (United States), corresponding author), Sarmistha Pal (0000-0003-3813-2108), Sebastian Negrusa (0000-0001-7750-2189, Lewin Group (United States))
Year2021
Volume6
Issue3
Pages110-122
Publication date2021-02-08
Open AccessYes
TypeARTICLE
VenueJournal of Veterans Studies (JOURNAL)
Journal identifiersISSN: 2470-4768 • E-ISSN: 2470-4768
PublisherVirginia Tech Libraries (PUBLISHER)
DOI10.21061/jvs.v6i3.203
OpenAlexW3131067265
LanguageEN
References cited16

Many veterans rely on the Supplemental Nutrition Assistance Program (SNAP). We study the change in the veterans’ reliance on SNAP in response to the GI Bill, the veterans’ financial aid for higher education. Using the unanticipated increase in educational benefits due to the Post-9/11 GI Bill and employing a difference-in-differences approach, we estimate that the benefit increase lowered veteran SNAP participation by about 28%, the effect being larger among new veterans. These findings reflect changes in the veterans’ choices that are attributable to wealth effects, SNAP eligibility criteria, and human capital accumulation. SNAP eligibility typically expires when the veteran attends college, and a larger educational benefit increases the veterans’ probability of college attendance. Furthermore, a college degree increases future earnings, which reduces the veterans’ SNAP reliance in the longer run. Quantifying these relationships provides insights into how financial aid for education in general improves veterans’ economic well-being and may help break some veterans’ dependence on SNAP and similar welfare programs

Attendance · Demographic economics · Earnings · Economic growth · Economics · Human capital · Snap · Spillover effect · Supplemental Nutrition Assistance Program · Veterans Affairs · Welfare · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Medicine · Poverty, Education, and Child Welfare · Psychology · Finance

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