The Impact of Food Assistance on Labor Supply and Family Outcomes: A Study of SNAP’s Role in Work Incentives and Fertility Choices

Abstract

The first chapter of this dissertation examines the impact of expanded eligibility for the Supplemental Nutrition Assistance Program (SNAP) on labor supply decisions across U.S. states. Leveraging variation in eligibility expansions over time, it investigates whether the broadened access to SNAP encourages labor force participation and increases hours worked among newly eligible individuals. Contrary to the expectation that SNAP benefits might reduce work incentives, findings reveal an increase in labor force participation on the extensive margin, particularly among groups exempt from work requirements. The study also explores the heterogeneous effects by education level, household type, and enrollment status, as well as by the intensity with which eligibility criteria were relaxed. This analysis contributes to understanding SNAP's role in labor supply behavior, challenging assumptions about welfare benefits and work incentives. The results have implications for policymakers considering eligibility criteria adjustments to improve labor market engagement. The second chapter investigates examines how the Supplemental Nutrition Assistance Program (SNAP) may affect teenage birth rates in the U.S. over the period 2001-2019, since teenage childbearing can have long-term socioeconomic impacts on young mothers and their children. Using data from the Current Population Survey (CPS) and a 2SLS approach, we find that a 1% increase in SNAP benefits is associated with a 0.11 to 0.14 percentage point rise in teenage birth likelihood. Our findings suggest that SNAP may unintentionally encourage early childbearing by alleviating financial barriers to child-rearing. Additionally, our heterogeneous analysis reveals that the impact of SNAP benefits on teenage birth rates varies significantly across races, census regions, and time periods, with more pronounced effects observed following the Great Recession. We also investigate potential channels through which SNAP influences teenage childbearing and find that SNAP is associated with lower labor force participation, higher unemployment, and negative effects on family formation. Our results emphasize the need to reevaluate social welfare programs to ensure a balance between the economic support provided by SNAP and its potential impacts on fertility choices. The third chapter analyzes the impact of Supplemental Nutrition Assistance Program (SNAP) benefits on the timing of first childbirth among low-skilled women (with births between ages 15 and 40 years), particularly focusing on high school dropouts. Leveraging data from the Current Population Survey (CPS) and a three-way fixed effects model, the analysis finds that a 10% increase in SNAP benefits is associated with an approximate 1.18-year reduction in the age at first childbirth. This effect is most pronounced among Black women, followed by weaker effects for White and Hispanic women. Regional analysis uncovers significant variation, with the strongest negative effects observed in the Midwest. Notably, the association is particularly strong among White women aged 20–25, where SNAP benefits show the largest negative impact on the age of first birth. Exploring potential mechanisms, the findings suggest that higher SNAP benefits correlate with increased unemployment rates and larger family sizes, indicating that the financial stability provided by SNAP may incentivize earlier childbearing. Additionally, higher SNAP benefits are linked to declines in marriage rates and increases in divorces, separations, and women choosing to remain unmarried, contributing to earlier transitions to parenthood outside stable relationships. These findings highlight the multifaceted ways in which public assistance programs can influence demographic and behavioral outcomes.