Using data linked across generations in the Panel Study of Income Dynamics, I estimate the relationship between exposure to volatile income during childhood and a set of socioeconomic outcomes in adulthood. The empirical framework is an augmented intergenerational income mobility model that includes controls for income volatility. I measure income volatility at the family level in two ways. First, instability as measured by squared deviations around a family-specific mean, and then as percent changes of 25 percent or more. Volatility enters the model both separately and interacted with income level. I find that family income instability during childhood has a small, positive association with high school dropout–one which appears driven by volatility among children from lower income households. Evidence suggests that volatility exposure generally has a minimal impact on intergenerational outcomes relative to permanent income.
Research
ALL RESEARCH
Childhood stress: A qualitative analysis of the intergenerational circumstances of child hunger
Mariana Chilton, Molly Knowles
Adverse childhood experiences, including abuse, neglect, and household instability affect lifelong health and economic potential. While relationships between household food insecurity and caregiver's childhood exposure to abuse and neglect are underexplored, preliminary evidence indicates that caregivers reporting very low food security report traumatic events in their childhoods that lead to poor physical and mental health. Building on this evidence, this study investigates how adverse childhood experiences are associated with the intergenerational transmission of household food insecurity. Understanding the associations between mothers' adverse experiences in childhood and reports of current household food security allows researchers, advocates, and policymakers to comprehensively address the intergenerational transmission of hunger.
Childhood Welfare Exposure and Economic Outcomes for Adult Daughters and Sons
Robert Paul Hartley, Carlos Lamarche, James P. Ziliak
We investigate how length of time on welfare during childhood affects economic outcomes in early adulthood. Using intergenerationally linked mother-child pairs from the Panel Study of Income Dynamics, we adopt a nonlinear difference-in-differences framework using the 1990s welfare reform to estimate average and quantile treatment effects on intensity of welfare use and earnings in adulthood. The causal estimates indicate that additional childhood welfare exposure leads to more adulthood years on the broader safety net for both daughters and sons, yet this positive relationship only applies below moderate levels of adult welfare participation and reverses at greater levels of dependence. Increasing childhood welfare exposure implies lower earnings in adulthood for daughters, however we find no evidence that it depresses adult sons’ earnings. Both daughters and sons exhibit some wage penalty from childhood welfare exposure, yet only daughters are penalized through hours worked in the labor market.
This paper surveys economic research on the association between economic development and urban areas, links this summary to some important trends in economic outcomes in Appalachia in recent decades, highlights areas in need of future research on the role of urban areas as engines of economic development in Appalachia, and discusses what types of place-based policies might be effective to promote economic growth and development in the Appalachian region.
Contextualizing family food decisions: The role of household characteristics, neighborhood deprivation, and local food environments
Sarah Bowen, Richelle Winkler, J. Dara Bloom, Lillian MacNell
We employ multilevel models with neighborhood and state effects (fixed effects and random effects) to analyze the associations between household characteristics, neighborhood characteristics, regional attributes and dietary quality. We use data from the USDA National Household Food Acquisition and Purchase Survey. Our dependent variable is a Healthy Eating Index that incorporates dollars spent and amount of food in several categories. Key explanatory variables at the household level include variables household financial condition, housing burden, home ownership, car access, household size. We include a variable for the number of large food stores in the neighborhood, a neighborhood deprivation index, and a regional food price index, along with neighborhood and state random effects. Our model shows that at the household level, financial condition and home ownership are significantly and positively related to dietary quality, while U.S. citizenship status and living in a rural area were negatively associated with dietary quality. The number of large food stores in the neighborhood is significantly and positively associated with dietary quality. Neighborhood deprivation is not significantly associated with dietary quality, nor is the regional food price index. However, the neighborhood and state random effects variables were both significant, and the neighborhood variable explains close to half of the variation in household dietary quality. Our results highlight the complexity of understanding factors at different spatial scales that influence dietary quality. Food environments are important in shaping household food decisions, as are household finances. Future research should work on untangling additional neighborhood-level factors that matter for dietary quality.
Cost of living and the supplemental poverty measurement
James P. Ziliak
On April 28, 2011, the University of Kentucky Center for Poverty Research, in conjunction with the Brookings Institution and U.S. Census Bureau, sponsored a research forum titled Cost of Living and the Supplemental Poverty Measure at the Brookings Institution. Among the more than 60 attendees were representatives from the Assistant Secretary for Planning and Evaluation inthe Department of Health and Human Services, Agency for Healthcare Research and Quality, the Bureau of Economic Analysis, Bureau of Labor Statistics, Census Bureau, Congressional Research Service, Government Accountability Office, National Academy of Science, Office of Management and Budget, academia, and think tanks. This brief report provides the rationale and summary of the forum.
Cost of living, healthy food acquisition, and the Supplemental Nutrition Assistance Program
Sanjay Basu, Christopher Wimer, Hilary Seligman
We tested the hypothesis that high costs of living, such as from high housing rents, reduce the healthfulness of food acquisitions. Using the National Household Food Acquisition and Purchase Survey (2012-13), we examined the relationships between cost of living and food acquisition patterns among both SNAP participants and non-participants (N = 5,414 individuals from households participating in SNAP, 3,863 individuals from non-participating households <185% of the federal poverty threshold, and 5,036 individuals from non-participating households >185% of the federal poverty threshold). Indices for cost of living included county-level Regional Price Parities for major classes of expenditures and the geographic adjustment to the Supplemental Poverty Measure, which is based on rent prices. We regressed the cost of living indices against measures of food acquisitions per person per day in each of several standard food categories, controlling for individual-, household-, and county-level characteristics. Using endogenous treatment effects models to potentially address unmeasured confounders influencing both the propensity to live in high-cost areas and patterns of food acquisition, we observed that higher area-level costs of living were associated with less healthy food acquisitions, including significantly fewer acquisitions of vegetables, fruits, and whole grains, and significantly greater acquisitions of refined grains, fats and oils, and added sugars. Overall, living in a high-cost area was associated with an 11% reduction in the Healthy Eating Index—a composite nutritional index previously associated with obesity, type II diabetes, and all-cause mortality. Additionally, we found that SNAP participation was associated with a significantly improvement in the healthfulness of food acquisitions among persons living in high-cost counties.
Covid-19 and the U.S. safety net
Robert A. Moffitt and James P. Ziliak
We examine trends in employment, earnings, and incomes over the last two decades in the United States, and how the safety net has responded to changing fortunes, including the shutdown of the economy in response to the Covid-19 Pandemic. The U.S. safety net is a patchwork of different programs providing in-kind as well as cash benefits and had many holes prior to the Pandemic. In addition, few of the programs are designed explicitly as automatic stabilizers. We show that the safety net response to employment losses in the Covid-19 Pandemic largely consists only of increased support from unemployment insurance and food assistance programs, an inadequate response compared to the magnitude of the downturn. We discuss options to reform social assistance in America to provide more robust income floors in times of economic downturns.
Decomposing trends in income volatility: The 'wild ride' at the top and bottom
Bradley Hardy, James P. Ziliak
We provide a detailed accounting of the trend increase in family income volatility in recent decades by quantifying the contributions of household head earnings, spouse earnings, non-transfer non-labor income, transfer income, and tax payments (inclusive of the refundable Earned Income Tax Credit), along with covariances among the income components. Using twoyear matched panels in the Current Population Survey from 1980 to 2009, we find that the volatility of family income, as measured by the variance of the arc percent change, doubled over the past three decades. The increase in volatility was most pronounced among the top 1% of the income distribution; however, in any given year the level of volatility among the bottom 10% exceeds that of the top. The variance decompositions indicate that increased family income volatility comes directly from the higher volatility of head and spouse earnings, and other non-labor income, as well as from substantially reduced covariance between these three income sources with the tax system. This suggests that the current tax code is less effective in mitigating income shocks than in previous decades. Among lower income households, a larger share of volatility is driven by transfer income. In the absence of the increased negative covariance between the volatility of head earnings with non-transfer other income, overall volatility would be much higher.
Devolution, discretion, and local variation in TANF sanctioning
Richard Fording, Sanford Schram, Joe Soss
At least in Florida, we find that local discretion has increased in importance under TANF. We find significant variation in local practices and strong evidence that these differences are tied to local political values. We also find that social class variables are important in determing sanction outcomes. Individuals with lower levels of human capital are more likely to be sanctioned. Our analysis also underscores the potential importance of using a longitudinal design to study sanctioning outcomes. This conclusion is supported by at least two important aspects of our findings -- the existence of a seasonal pattern to sanctioning, and the relationship between race and sanctioning. Holding other variables constant, the overall rate of sanctioning in Florida is higher during the peak tourist season than it is during the summer monthssuggesting that studies conducted in short time frames may reach conclusions that cannot be reliably generalized to rest of the year. Ethnic differences in sanctioning are also related to the length of time on TANF. Thus, sanctioning disparity may be a more complex phenomenon than we have thus far understood and is therefore best studied using a longitudinal design.
Distributing discipline: Race, politics, and punishment at the frontlines of welfare reform
Richard Fording, Joe Soss, Sanford Schram
Numerous studies have confirmed that race plays an important role in shaping public preferences toward both redistribution and punishment. Likewise, studies suggest that punitive policy tools tend to be adopted by state governments in a pattern that tracks with the racial composition of state populations. Such evidence testifies to the enduring power of race in American politics, yet it has limited value for understanding how disciplinary policies get applied to individuals in implementation settings. To illuminate the relationship between race and the application of punitive policy tools, we analyze sanction patterns in the TANF program. Drawing on a model of racial classification and policy choice, we test four hypotheses regarding client race and sanctioning. Our study does not support a simple story in which racial minorities are always more likely to be targeted for discipline. Rather, we find the impact of race to be contingent on local politics, administrative decentralization, and other client characteristics.
The goal of this study is to evaluate the effects of Medicaid/SCHIP eligibility and programmatic features on transitions from private insurance coverage among samples of American low-income children using monthly data from the 2001 panel of the Survey of Income and Program Participation (SIPP), a nationally representative data set. The estimation approach combines multilevel modeling and event history analysis, including a robust array of variables measuring programmatic features, individual child, family, and state attributes. Logistic regression results do not indicate an adverse effect of expanded Medicaid/SCHIP eligibility on private insurance coverage. Results also suggest that states which established stand-alone SCHIP programs can potentially limit crowd-out better than states which simply expanded their existing Medicaid programs and that waiting periods of less than six months might have a negative impact on private insurance coverage. Future studies should examine, in greater detail, how program features and other social policies can reduce crowd-out, while increasing public insurance take-up rates among the neediest populations.
Do adoption subsidies help at-risk children?
Kasey Buckles
More than half a million children in the United States are currently in foster care, many of whom are at risk for long-lasting emotional and health problems. Research suggests that adoption may be one of the more promising options for the placement of these children. The Adoption Assistance and Child Welfare Act of 1980, which provided federal funds for monthly adoption subsidies, was designed to promote adoptions of special-needs children and children in foster care. Using data from the Adoption and Foster Care Analysis and Reporting Systems for 2000- 2006, I consider the effects of these adoption subsidies on children’s likelihood of being adopted, on time spent in foster care, and on the characteristics of adoptive families. Because subsidies may be determined endogenously, I employ an identification strategy that exploits state variation in the age at which children are eligible for federal subsidy funds. I find that foster children who are eligible for subsidies are more likely to be adopted, and that eligibility increases the hazard of discharge from foster care. Conditional on adoption, higher expected subsidies increase time to adoption finalization and increase the probability that a child is adopted by a relative such as a grandmother.
Do SNAP recipients get the best prices?
Conrad Lyford, Raymond March, Carlos Carpio, Tullaya Boonsaeng
This paper examines the relationship between SNAP participation and prices paid for food items. To test this relationship, we develop an expensiveness index following the method of Aguiar and Hurst (2007) and use the FoodAPS data set. Using both the ordinary least squares method and controlling for endogeneity using an instrumental variables approach, we found SNAP participation did not hold a statistically significant relationship with the prices paid for food items when we controlled for consumer behavior and food market variables. This suggests that SNAP participants are not systematically disadvantaged in their food purchases. Additional efforts to further educate SNAP participants of effective shopping and budgeting habits may be fruitful in helping households pay comparatively lower food prices.
Do SNAP work requirements work?
Timothy F. Harris
The American Recovery and Reinvestment Act waived work requirements nationally in 2010 and broadened waiver eligibility in subsequent years for Able-Bodied Adults without Dependents (ABAWDs) receiving Supplemental Nutrition Assistance Program (SNAP) bene ts. From 2011 to 2017, many states voluntarily imposed work requirements, while other areas became ineligible for waivers because of improved economic conditions. Using data from the American Community Survey from 2010 to 2017, I analyze the influence of work requirements on employment and SNAP participation for able bodied adults without disabilities (ABAWDs). I find that work requirements increased employment for ABAWDs and also significantly decreased SNAPparticipation.
Do Walmart supercenters improve food security?
Charles Courtemanche, Art Carden, Zilin Zhou, Murugi Ndirangu
This paper examines the effect of Walmart Supercenters, which lower food prices and expand food availability, on household and child food insecurity. Our food insecurity-related outcomes come from the 2001-2012 waves of the December Current Population Study Food Security Supplement. Using narrow geographic identifiers available in the restricted version of these data, we compute the distance between each household’s census tract of residence and the nearest Walmart Supercenter. We estimate instrumental variables models that leverage the predictable geographic expansion patterns of Walmart Supercenters outward from Walmart’s corporate headquarters. Results suggest that closer proximity to a Walmart Supercenter improves the food security of households and children, as measured by number of affirmative responses to a food insecurity questionnaire and an indicator for food insecurity. The effects are largest among low-income households and children, but are also sizeable for middle-income children.
Does early food insecurity impede the educational access needed to become food secure?
Sarah Hamersma, Matthew Kim
This paper examines the role of educaitonal investment as a mechanism for the intergenerational transmission of food insecurity. Specifically, we examine how food insecurity during childhood may reduce post-secondary educational infestments, which, in turn, may increase food insecurity during adulthood. Recent work on families and teenagers suggests that teenage employment may contribute to increased food security of children in a household. Teenagers who choose work over educational engagement during high school may not be poised to make the educational ivnestments needed to achieve food security as adults.
Does economic decline contribute to a decline in children's food security?
Kimberly Groover, Bradford Mills, George Davis
This report presents evidence that spikes in regional and household characteristics played a significant role in the observed 2008 increase in child with very low food security and low food security. Perhaps not surprisingly, unemployment of the household head is found to substantially increase the probability of very low food security and low food insecurity among children. Further, simulations of changes in regional economic conditions indicate rising unemployment rates during the Great Recession explain a significant portion of observed increases in child food insecurity. The findings suggest that there is a need to examine unemployment insurance and job creation policies during severe labor market shocks in order to better protect the food security of families with children. The study also finds that the factors which place children at risk of very low food security are in some cases different than those that place children at risk of low food security.
Does Food Stamp receipt mediate the relationship between food insufficiency and mental health
Colleen Heflin, James P. Ziliak
Although the Food Stamp Program is the largest entitlement program remaining in the social safety net, comparatively little is known about the potential benefits that the program may confer on recipients. In this paper we examine an important dimension of well being, mental health, and the extent to which participation in the Food Stamp Program may attenuate the effect of food insufficiency on levels of emotional distress. Using longitudinal data from a nationally representative sample of families in the Panel Study of Income Dynamics (PSID) we model emotional distress as a function of food insufficiency and other known risk factors for poor mental health. We allow participation in the Food Stamp Program to have a direct impact on mental health, and then test whether food stamp participation mediates the effect of food insufficiency on emotional distress. To conduct our tests we use a first-difference instrumental variables estimator to control for unobserved heterogeneity in emotional distress and possible measurement error in Food Stamp Program participation. We find that food insufficiency has a sizable deleterious effect on the level of emotional distress, as does participation in the Food Stamp Program. However, we also find that participation in the Food Stamp Program among food insufficient households nearly eliminates the deleterious effect of food insufficiency on emotional health, suggesting that the program is well targeted to those in need of food assistance and improved mental health. This research provides the first evidence that the Food Stamp Program has an important positive spill-over effect on mental health through its mediation of household food insufficiency.
Does race-based redistricting matter for policy?
Ebonya Washington
During the 1990 congressional redistricting many states were mandated to create additional majority minority-resident districts in order to elect more minorities to Congress. Civil rights groups and Republicans cheered. The Party views Democratic districts stripped of Black voters as opportunities to repaint blue districts red. The academic literature agrees, attributing the Republican return to House control in 1994 to race based redistricting. However, this literature generally focuses on the district as the unit of analysis, a focus that is too narrow, as some districts gain Black residents while others lose them. I focus on states, the level at which redistricting occurs. By comparing congressional delegations of states under greater pressure to create majority minority districts with those under less pressure in a difference-in-difference framework, I find no evidence that the creation of majority minority districts leads to more conservative House delegations. In fact point estimates indicate that states that increased their share of majority Black districts saw their delegations grow increasingly liberal. I find similar results for Latino districts in the southwest. Thus I find no evidence of the alleged tradeoff between having minority representatives and representatives who support minorities’ preferred policies.