Safety Net Use

  • Karen Jusko
  • Mark Duggan
  • Hilary Hoynes

Leaders: Mark Duggan, Hilary Hoynes, Karen Jusko

The Safety Net RG is devoted to monitoring changes in government transfers and anti-poverty programs and assessing whether they are meeting the needs of the poor. The U.S. safety net is undergoing such changes as (a) an ongoing decline in TANF cash benefits, (b) rapid increases in spending on EITC, Medicaid, Disability Insurance, Unemployment Insurance, and SNAP, and (c) a dramatic shift toward spending that favors the “working poor” over the more destitute. The CPI affiliates working within this research group are monitoring these changes, examining their implications for poverty, assessing the effectiveness of key government and nongovernment programs in reducing poverty, and modeling the costs and benefits of possible changes in policy and programs. We’ve provided a sampling here of some of this ongoing research.

Poverty Relief Project: With Kate Weisshaar, Karen Jusko uses the poverty relief ratio to evaluate the effectiveness of anti-poverty programs over time, across states, and across countries. Which state is the least effective in fighting poverty? Has the U.S. become more or less effective over time? These and other questions are answered in our latest State of the Union reports.

Long-run effects of SNAP: Have we underestimated the returns to SNAP by ignoring the long-run effects on children exposed to it in their early childhood? It’s now possible to find out.

California Welfare LaboratoryThe poverty rate in California, when measured with the Supplemental Poverty Measure, is the highest in the country. What can be done to bring that rate down? The mission of the California Welfare Laboratory is to make research on California’s welfare programs accessible to all and thus facilitate an informed discussion of what is working and what needs to be improved.

Differential EITC effects: It is often argued that early interventions have especially high payoffs.  Are the returns to the EITC indeed larger when it goes to parents with young children?

Disability and poverty: Does the federal government’s disability program reduce labor supply? Although it’s long been difficult to identify a causal effect, Mark Duggan has now found a way.

The effects of TANF: The TANF program is very decentralized and thus takes on dramatically different forms. How can we exploit that variability to find out what’s working?

Safety Net - CPI Research

Title Author Media
It's Not Like I'm Poor: How Working Families Make Ends Meet in a Post-Welfare World Sarah Halpern-Meekin, Kathryn Edin, Laura Tach, Jennifer Sykes

It's Not Like I'm Poor: How Working Families Make Ends Meet in a Post-Welfare World

Author: Sarah Halpern-Meekin, Kathryn Edin, Laura Tach, Jennifer Sykes
Publisher: University of California Press
Date: 01/2015

The world of welfare has changed radically. As the poor trade welfare checks for low-wage jobs, their low earnings qualify them for a hefty check come tax time—a combination of the earned income tax credit and other refunds. For many working parents this one check is like hitting the lottery, offering several months’ wages as well as the hope of investing in a better future. Drawing on interviews with 115 families, the authors look at how parents plan to use this annual cash windfall to build up savings, go back to school, and send their kids to college. However, these dreams of upward mobility are often dashed by the difficulty of trying to get by on meager wages. In accessible and engaging prose, It’s Not Like I’m Poor examines the costs and benefits of the new work-based safety net, suggesting ways to augment its strengths so that more of the working poor can realize the promise of a middle-class life.

The short-term impacts of Earned Income Tax Credit disbursement on health David H. Rehkopf, Kate W Strully, William H. Dow

The short-term impacts of Earned Income Tax Credit disbursement on health

Author: David H. Rehkopf, Kate W Strully, William H. Dow
Publisher: International Journal of Epidemiology
Date: 08/2014

Background: There are conflicting findings regarding long- and short-term effects of income on health. Whereas higher average income is associated with better health, there is evidence that health behaviours worsen in the short-term following income receipt. Prior studies revealing such negative short-term effects of income receipt focus on specific subpopulations and examine a limited set of health outcomes.

Methods: The United States Earned Income Tax Credit (EITC) is an income supplement tied to work, and is the largest poverty reduction programme in the USA. We utilize the fact that EITC recipients typically receive large cash transfers in the months of February, March and April, in order to examine associated changes in health outcomes that can fluctuate on a monthly basis. We examine associations with 30 outcomes in the categories of diet, food security, health behaviours, cardiovascular biomarkers, metabolic biomarkers and infection and immunity among 6925 individuals from the U.S. National Health and Nutrition Survey. Our research design approximates a natural experiment, since whether individuals were sampled during treatment or non-treatment months is independent of social, demographic and health characteristics that do not vary with time.

Results: There are both beneficial and detrimental short-term impacts of income receipt. Although there are detrimental impacts on metabolic factors among women, most other impacts are beneficial, including those for food security, smoking and trying to lose weight.

Conclusions: The short-term impacts of EITC income receipt are not universally health promoting, but on balance there are more health benefits than detriments.

State of the Union: Safety Net Karen Jusko, Kate Weisshaar

State of the Union: Safety Net

Author: Karen Jusko, Kate Weisshaar
Publisher:
Date: 04/2014
Has the Shift to Managed Care Reduced Medicaid Spending? Evidence from State and Local-Level Mandates Mark Duggan, Tamara Hayford

Has the Shift to Managed Care Reduced Medicaid Spending? Evidence from State and Local-Level Mandates

Author: Mark Duggan, Tamara Hayford
Publisher:
Date: 01/2013

From 1991 to 2009, the fraction of Medicaid recipients enrolled in HMOs and other forms of Medicaid managed care (MMC) increased from 11 percent to 71 percent. This increase was largely driven by state and local mandates that required most Medicaid recipients to enroll in an MMC plan. Theoretically, it is ambiguous whether the shift from fee-for-service into managed care would lead to an increase or a reduction in Medicaid spending. This paper investigates this effect using a data set on state and local level MMC mandates and detailed data from CMS on state Medicaid expenditures. The findings suggest that shifting Medicaid recipients from fee-for-service into MMC did not reduce Medicaid spending in the typical state. If anything, our results suggest that the shift to MMC increased Medicaid spending and that this effect was especially present for risk-based HMOs. However, the effects of the shift to MMC on Medicaid spending varied significantly across states as a function of the generosity of the state’s baseline Medicaid provider reimbursement rates.

Poverty Requires Disaster Relief Michele Dauber

Poverty Requires Disaster Relief

Author: Michele Dauber
Publisher:
Date: 12/2012

Safety Net - CPI Affiliates

Jan O. Jonsson Professor of Sociology Swedish Institute for Social Research
Janet Currie Professor of Economics; Research Associate, National Bureau of Economic Research Columbia University
Jeffrey Grogger Irvin Harris Professor The University of Chicago
Jeffrey R. Kling Senior Fellow and Deputy Director, Economics Studies Program; Faculty Research Fellow, National Bureau of Economic Research The Brookings Institution
Julie-Berry Cullen Associate Professor of Economics; Research Associate, National Bureau of Economic Research University of California, San Diego

Pages

Safety Net - Other Research

Title Author Media
How Much Protection Does a College Degree Afford? The Impact of the Recession on Recent College Graduates The Pew Charitable Trusts

How Much Protection Does a College Degree Afford? The Impact of the Recession on Recent College Graduates

Author: The Pew Charitable Trusts
Publisher: The Pew Charitable Trusts
Date: 01/2013

Past research from Pew’s Economic Mobility Project has shown the power of a college education to both promote upward mobility and prevent downward mobility. The chances of moving from the bottom of the family income ladder all the way to the top are three times greater for someone with a college degree than for someone without one. Moreover, when compared with their less-credentialed counterparts, college graduates have been able to count on much higher earnings and lower unemployment rates. Even during the Great Recession, college graduates maintained higher rates of employment and higher earnings compared with less educated adults. However, the question of how recent college graduates have fared has remained largely unexamined, and many in the popular media have suggested that the advantageous market situation of college graduates is beginning to unravel under the pressure of the economic downturn. This study examines whether a college degree protected these recent graduates from a range of poor employment outcomes during the recession, including unemployment, low-skill jobs, and lesser wages.

Vulnerable Populations and Transformative Law Teaching Society of American Law Teachers, Golden Gate...

Vulnerable Populations and Transformative Law Teaching

Author: Society of American Law Teachers, Golden Gate...
Publisher: Carolina Academic Press
Date: 03/2011

The essays included in this volume began as presentations at the March 19–20, 2010 “Vulnerable Populations and Economic Realities” teaching conference organized and hosted by Golden Gate University School of Law and co-sponsored by the Society of American Law Teachers (SALT). That conference, generously funded by a grant from The Elfenworks Foundation, brought together law faculty, practitioners, and students to reexamine how issues of race, gender, sexual identity, nationality, disability, and generally—outsider status—are linked to poverty. Contributors have transformed their presentations into essays, offering a variety of roadmaps for incorporating these issues into the law school curriculum, both inside the classroom as well as in clinical and externship settings, study abroad, and social activism. These essays provide glimpses into “teaching moments,” both intentional and organic, to help trigger opportunities for students and faculty to question their own perceptions and experiences about who creates and interprets law, and who has access to power and the force of law. This book expands the parameters of law teaching so that this next generation of attorneys will be dedicated to their roles as public citizens, broadening the availability of justice. Contributors include: John Payton; Richard Delgado; Steven W. Bender; Sarah Valentine; Deborah Post and Deborah Zalesne; Gilbert Paul Carrasco; Michael L. Perlin and Deborah Dorfman; Robin R. Runge; Cynthia D. Bond; Florence Wagman Roisman; Doug Simpson; Anne Marie Harkins and Robin Clark; Douglas Colbert; Raquel Aldana and Leticia Saucedo, Marci Seville; Deirdre Bowen, Daniel Bonilla Maldonado, Kathleen Neal Cleaver, Colin Crawford, and James Forman, Jr.; Susan Rutberg; Mary B. Culbert and Sara Campos; MaryBeth Musumeci, Elizabeth Weeks Leonard, and Brutrinia D. Arellano; Libby Adler; and Paulette J. Williams. The editorial board includes Raquel Aldana, Steven Bender, Olympia Duhart, Michele Benedetto Neitz, Angela Onwuachi-Willig, Hari Osofsky, and Hazel Weiser.

The Invisible Safety Net: Protecting the Nation's Poor Children and Families Currie, Janet M.

The Invisible Safety Net: Protecting the Nation's Poor Children and Families

Author: Currie, Janet M.
Publisher: Princeton University Press
Date: 11/2008
Positional Externalities Cause Large and Preventable Welfare Losses Frank, Robert H.

Positional Externalities Cause Large and Preventable Welfare Losses

Author: Frank, Robert H.
Publisher: American Economic Review
Date: 01/2005
Flexible Firms and Labor Market Segmentation: Effects of Workplace Restructuring on Jobs and Workers Arne. L. Kalleberg

Flexible Firms and Labor Market Segmentation: Effects of Workplace Restructuring on Jobs and Workers

Author: Arne. L. Kalleberg
Publisher: Work and Occupations
Date: 05/2003

Safety Net - Multimedia

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