The protective effect of SNAP during economic downturns: Evidence from the COVID‐19 pandemic

Abstract

AbstractThis paper estimates the intra‐pandemic effects of Supplemental Nutrition Assistance Program (SNAP) participation on the risk of food insecurity over a period when the majority of SNAP beneficiaries received emergency allotments. Within‐person estimations using longitudinal data from the 2019–2020 National Health Interview Survey reveal that, relative to income‐eligible SNAP nonparticipants, the likelihood of food insecurity was 37% lower over August–December 2020 among SNAP participants. A heterogeneity analysis indicates that this was mainly driven by higher income SNAP participants who received larger SNAP benefits through movements from below the maximum benefit for their household size to the maximum. Indeed, compared to income‐eligible SNAP nonparticipants, the risk of food insecurity was 78% (6%) lower over August–December 2020 among SNAP participants with above‐median (below‐median) family income to poverty ratios.