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Financial Repercussions of SNAP Work Requirements.
- Source :
- Working Papers: U.S. Federal Reserve Board's Finance & Economic Discussion Series; May2022, p1-50, 50p
- Publication Year :
- 2022
-
Abstract
- This paper considers the credit response of individuals after the implementation of new work requirements for Supplemental Nutrition Assistance (SNAP) benefits using a large nationally representative sample of credit records. It does so by exploiting county-level variation in the implementation of work requirements after the Great Recession in a difference-in-differences design. We find that the implementation of new SNAP work requirements leads more people to seek out new credit and leads to an increase in credit account openings. New work requirements also result in an increase in total outstanding balances on bank and retail card accounts and increase the number of borrowers that are past due on these accounts. These findings suggest that some individuals are turning to credit and debt products to cover expenses after losing eligibility for SNAP benefits. [ABSTRACT FROM AUTHOR]
- Subjects :
- RETAIL industry
CHARGE accounts
FINANCIAL management
BANKING industry
Subjects
Details
- Language :
- English
- ISSN :
- 19362854
- Database :
- Complementary Index
- Journal :
- Working Papers: U.S. Federal Reserve Board's Finance & Economic Discussion Series
- Publication Type :
- Report
- Accession number :
- 157145347
- Full Text :
- https://doi.org/10.17016/FEDS.2022.030