Income Distribution Commons^™

The Distributional And Countercyclical Effects Of Public Capital Investment In Transportation Infrastructure, Matthijs B. Schendstok

Theses and Dissertations--Economics

While the long run productivity of federal highway infrastructure spending has been well researched, their short run effects and effects on income inequality. This dissertation explores those under-researched unconventional effects.

In the first chapter, I investigate the effects of federal infrastructure grants on income inequality. I find that grants reduce inequality in both recipient and neighboring states. The reduction is driven by greater income among the bottom three income quintiles. I explore two mechanisms using person level data and find that the reduction in inequality is attributable to higher income for low-skilled workers and workers working in low-skilled industries.

In …

Essays On Transfer-Program Interactions Among Low-Income Households, Nicholas S. Moellman

Theses and Dissertations--Economics

This dissertation consists of three essays examining the role of transfer-program interactions for families and households who participate in the social safety net. The safety net is comprised of many different programs, run by different agencies, governed by different rules, and often administered by disparate and secluded entities. However, many households participate in multiple programs, subjecting them to the milieu of administrative hurdles. In this dissertation, I try to untangle some of the intended and unintended effects of program participation that may be experienced by these households.

In Essay 1, I examine the effect of the Patient Protection and Affordable …

How Well Does Snap Protect Families Against The Risk Of Food Insecurity And Poor Health During Economic Downturns?, Thomas Deleire, Bradley Hardy, Jay Bhattacharya

University of Kentucky Center for Poverty Research Discussion Paper Series

Our research project addressed the question of how well SNAP and the social safety net protects families against the risk of food insecurity and poor health during economic downturns. Previous research has documented the relationship between reductions in family incomes and food insufficiency and has examined the effects of resources that mitigate the effects of income volatility. The U.S. social safety net, including SNAP, exists to mitigate the deleterious effects of swings in family income, particularly among low- and moderate-income households. This work compares outcomes for lower income families and higher income families in response to economic downturns. To the …

Using Natural Experiments To Identify The Effects Of Snap On Child And Adult Health, Daniel P. Miller, Taryn W. Morrissey

University of Kentucky Center for Poverty Research Discussion Paper Series

The Supplemental Nutrition Assistance Program (SNAP; formerly known as food stamps) can have important impacts that extend beyond its intended aims to improve food security and nutrition, particularly for health and health care use. This project examined the impact of SNAP receipt and benefit level on the health of adults and children using two natural experiments to address selection bias: 1) state policy variation in SNAP in an instrumental variables (IV) analysis; and, 2) the temporary expansion of SNAP benefits and eligibility provided through the American Recovery and Reinvestment Act (ARRA) in a difference-in-difference (DD) approach. We used restricted data …

Child Age And Gender Differences In Food Security In A Low-Income Inner-City Population, Robert A. Moffitt, David C. Ribar

University of Kentucky Center for Poverty Research Discussion Paper Series

A long literature in economics concerns itself with differential allocations of resources to different children within the family unit. In a study of approximately 1,500 very disadvantaged families with children in Boston, Chicago, and San Antonio from 1999 to 2005, significant differences in levels of food allocation, as measured by an indicator of food “insecurity,” are found across children of different ages and genders. Using answers to unique survey questions for a specific child in the family, food insecurity levels are found to be much higher among older boys and girls than among younger ones, and to be sometimes higher …

Impact Of Food Insecurity And Snap Participation On Healthcare Utilization And Expenditures, Seth A. Berkowitz, Hilary K. Seligman, Sanjay Basu

University of Kentucky Center for Poverty Research Discussion Paper Series

We tested three hypothesis related to food insecurity and the Supplemental Nutrition Assistance Program (SNAP), America’s largest anti-food insecurity program. We hypothesized that 1)food insecurity would be associated with increased healthcare expenditures, 2)food insecurity would be associated with increased use of emergency department and inpatient services, and 3) SNAP participation would be associated with lower subsequent healthcare expenditures. We used data from the 2011 National Health Interview Survey linked to the 2012-13 Medical Expenditures Panel Survey. We used zero-inflated negative binomial regression to test the relationship between food insecurity and healthcare cost and use. We evaluated the association between SNAP …

The Real Value Of Snap Benefits And Health Outcomes, Hilary W. Hoynes, Erin Bronchetti, Garret Christensen

University of Kentucky Center for Poverty Research Discussion Paper Series

The food stamp program (SNAP) is one of the most important elements of the social safety net and is the second largest anti-poverty program for children in the U.S. (only the EITC raises more children above poverty). The program varies little across states and over time, which creates challenges for quasi-experimental evaluation. Notably, SNAP benefit levels are fixed across 48 states; but local food prices vary widely, leading to substantial variation in the real value of SNAP benefits. In this study, we leverage time variation in the real value of the SNAP benefit across markets to examine the effects of …

Welfare Reform And The Intergenerational Transmission Of Dependence, Robert Paul Hartley, Carlos Lamarche, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

We estimate the effect of welfare reform on the intergenerational transmission of welfare participation using a long panel of mother-daughter pairs over the survey period 1968-2013 in the Panel Study of Income Dynamics. Because states implemented welfare reform at different times starting in 1992, the cross-state variation over time permits us to quasi-experimentally separate out the effect of mothers’ participation on daughters’ welfare choice in the pre- and post-welfare reform periods. Our empirical framework also addresses potential issues in identifying a causal pathway from parent to child that arise from correlated unobservables in welfare decisions, misclassification error in survey reports, …

Food Store Choice Of Poor Households: A Discrete Choice Analysis Of The National Household Food Acquisition And Purchase Survey, Sofia B. Villas-Boas, Rebecca Taylor

University of Kentucky Center for Poverty Research Discussion Paper Series

Policymakers are pursing initiatives to increase food access for low-income households. However, due in part to previous data deficiencies, there is still little evidence supporting the assumption that improved food store access will alter dietary habits, especially for the poorest of U.S. households. This article uses the new National Household Food Acquisition and Purchase Survey (FoodAPS) to estimate consumer food outlet choices as a function of outlet type and household attributes in a multinomial mixed logit. In particular, we allow for the composition of the local retail food environment to play a role in explaining household store choice decisions and …

The Effect Of Food Price On Food Insecurity And Diet Quality: Exploring Potential Moderating Roles Of Snap And Consumer Competency, Yunhee Chang, Jinhee Kim, Swarn Chatterjee

University of Kentucky Center for Poverty Research Discussion Paper Series

Higher food prices may aggravate household food insecurity and hurt diet quality. Using a sample of low-income households from the National Household Food Acquisition and Purchase Survey (FoodAPS), this study examines whether local food prices affect food insecurity and nutritional quality of foods acquired, and how households use competent consumer behaviors to mitigate any adverse effects of price. Financial management practices, nutrition literacy, and conscientious food shopping practices were considered for consumer competency. Our findings indicate that low-income households in higher-cost areas, regardless of whether they participate in SNAP or not, are more likely to adopt loyalty or other store …

The Effects Of Benefit Timing And Income Fungibility On Food Purchasing Decisions Among Snap Households, Joshua P. Berning, Gregory Colson, Jeffery H. Dorfman, Travis A. Smith, Xiaosi Yang

University of Kentucky Center for Poverty Research Discussion Paper Series

The Supplemental Nutrition Assistance Program (SNAP) is the largest nutritional safety net in the United States. Prior research has found that participants have higher consumption shortly after receiving their benefits, followed by lower consumption towards the end of the benefit month. This “SNAP benefit cycle” has been found to have negative effects on beneficiaries. We examine two behavioral responses of SNAP participants that may work in tandem to drive much of the cycle: short-run impatience – a higher preference to consume today; and fungibility of income – the degree of substitutability between a SNAP dollar and a cash dollar. Using …

Variation In Food Prices And Snap Adequacy For Purchasing The Thrifty Food Plan, Erin Bronchetti, Garret Christensen, Benjamin Hansen

University of Kentucky Center for Poverty Research Discussion Paper Series

Whether Supplemental Nutrition Assistance Program (SNAP) benefits are adequate to provide food security for eligible households is an important and timely policy question. While the nominal value of SNAP benefits is fixed across states (except for Hawaii and Alaska), variation in food prices across geographic areas is dramatic, and the real value of SNAP benefits varies widely across the U.S. Our research provides new evidence on geographic variation in the adequacy of SNAP benefits to purchase the Thrifty Food Plan (TFP).

Using multiple methods to estimate the cost of the Thrifty Food Plan (TFP) faced by households across the nation, …

Cost Of Living, Healthy Food Acquisition, And The Supplemental Nutrition Assistance Program, Sanjay Basu, Christopher Wimer, Hilary K. Seligman

University of Kentucky Center for Poverty Research Discussion Paper Series

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 …

Food Security And Geographic Factors In Food Purchase And Acquisition Decisions: A Compilation Of Research Conducted Under Usda Cooperative Agreements 58-5000-1-0050 And 58-5000-3-0066, James P. Ziliak, Craig Gundersen

University of Kentucky Center for Poverty Research Discussion Paper Series

No abstract provided.

Supermarket Proximity And Price: Food Insecurity And Obesity In The United States, Janelle Downing, Barbara Laraia

University of Kentucky Center for Poverty Research Discussion Paper Series

Where we live matters for our health. The social, economic, and physical features of neighborhoods can play a powerful role in health and longevity. Neighborhood concentration of poverty and poor health have been shown to be linked. Residing in low-income neighborhoods has been associated with diet related chronic diseases such as obesity and diabetes.

An Examination Of Gender Income Gaps In And Out Of Government, Elisha Comer

MPA/MPP/MPFM Capstone Projects

No executive summary.

The Relationship Between Neighborhood Food Environment And Food Store Choice On Purchasing Habits Among Snap And Lower Income Households, Usda Foodaps Data, Alison A. Gustafson, James E. Allen Iv, Nancy E. Schoenberg, Mark Swanson

University of Kentucky Center for Poverty Research Discussion Paper Series

The objective of the study was to determine relationship between neighborhood food store availability, store choice and food purchasing habits among Supplemental Nutrition Assistance Program (SNAP) participating households. The study sample consisted of SNAP households (n=1581) and low income households participating in the USDA's National Household Food Acquisition and Purchase Survey (FoodAPS) a nationally representative cross-sectional survey of American households with household food purchases and acquisitions data. Main Outcomes: 1) Food purchasing choices (sugar-sweetened beverages, fruits and vegetables, snacks, water, and milk) obtained from store receipts over a one-week period; 2) food shopping activities was obtained from a log book …

Influence Of Snap Participation And Food Environment On Nutritional Quality Of Food At Home Purchases, Amy Hillier, Benjamin Chrisinger, Tony E. Smith, Eliza Whiteman, Michael Kallan

University of Kentucky Center for Poverty Research Discussion Paper Series

A growing body of research describes how individuals make food shopping decisions in both time and space. The FoodAPS dataset provides a unique opportunity for understanding these patterns among a large sample across income, SNAP status, and settings. We addressed three questions in our research: (1) Where do participants shop for food at home (FAH) and how do individual characteristics interact with store characteristics and distance? (2) How does the nutritional content of foods purchased change as time from SNAP distribution increases? and (3) How does store choice influence the nutritional quality of FAH purchases? We used a conditional logit …

Do Snap Recipients Get The Best Prices?, Conrad Lyford, Raymond J. March, Carlos E. Carpio, Tullaya Boonsaeng

University of Kentucky Center for Poverty Research Discussion Paper Series

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 …

Causes And Consequences Of The Calorie Crunch, Michael A. Kuhn

University of Kentucky Center for Poverty Research Discussion Paper Series

Monthly welfare programs such as the Supplementary Nutrition Assistance Program (SNAP) produce consistent cycles of expenditure and consumption amongst recipients. Food insecurity and negative behavioral outcomes track these cycles. This paper leverages new data from the USDA, the FoodAPS survey, and to answer a variety of questions related to these phenomena: Are consumption and expenditure cycles correlated? Who bears the burden of food shortages at the end of each benefit month? Does diet quality track food expenditure? I find robust expenditure and consumption cycles in the FoodAPS data, but contrary to popular belief, they are only weakly correlated. The youngest …

Contextualizing Family Food Decisions: The Role Of Household Characteristics, Neighborhood Deprivation, And Local Food Environments, Sarah Bowen, Richelle Winkler, J. Dara Bloom, Lillian Macnell

University of Kentucky Center for Poverty Research Discussion Paper Series

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 …

An Overview Of Snap, Food Security, And Geographic Factors In Food Purchase And Acquisition Decisions, James P. Ziliak, Craig Gundersen

University of Kentucky Center for Poverty Research Discussion Paper Series

In April 2012 the Economic Research Service (ERS) and the Food and Nutrition Service (FNS) in the U.S. Department of Agriculture embarked on an ambitious new data collection enterprise known as the National Household Food Acquisition and Purchase Survey (FoodAPS). FoodAPS is innovative in that it is the first nationally representative household survey to collect comprehensive data on household food expenditures and acquisitions, including those obtained using benefits from food assistance programs. The survey includes data from 4,826 households, including Supplemental Nutrition Assistance Program (SNAP) households, low-income eligible households not participating in SNAP, and higher income households. FoodAPS is specifically …

Temporary Assistance For Needy Families, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

The provision of public assistance to families with children in America faced a watershed moment with the passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). PRWORA replaced the Aid to Families with Dependent Children (AFDC) program, which was an entitlement funded via a federal-state matching grant, with Temporary Assistance for Needy Families (TANF), which is no longer an entitlement and is financed with a fixed federal block-grant to the states. The impetus for reform had been building for at least the two decades prior to passage, but took on greater currency with the dramatic growth …

Trouble In The Tails? What We Know About Earnings Nonresponse Thirty Years After Lillard, Smith, And Welch, Christopher R. Bollinger, Barry T. Hirsch, Charles M. Hokayem, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

Earnings nonresponse in household surveys is widespread, yet there is limited evidence on whether and how nonresponse bias affects measured earnings. This paper examines the patterns and consequences of nonresponse using internal Current Population Survey individual records linked to administrative Social Security Administrative data on earnings for calendar years 2005-2010. Our findings confirm the conjecture by Lillard, Smith, and Welch (1986) that nonresponse across the earnings distribution is U-shaped. Left-tail “strugglers” and right-tail “stars” are least likely to report earnings. Household surveys understate earnings dispersion, reporting too few low and too few extremely high earners. Throughout much of the earnings …

Impact Of Welfare Participation During Childhood On Adult Income, Curran A. Prettyman

Lewis Honors College Capstone Collection

This paper analyzes the impact of welfare participation during childhood on adult income. In the United States, welfare programs have a long history originating from the 1800s, and over $20 billion are currently allocated to various anti-poverty programs, such as Aid to Families with Dependent Children and Supplemental Security Income. Many people believe that these programs effectively eradicate childhood poverty. However, ordinary least squares and instrumental variables regression models suggest welfare programs are counterproductive. On average, holding all else constant, with 95% confidence, the total dollar amount of funding received from welfare programs during childhood is statistically significant to a …

Reassessing The Effects Of Unemployment Insurance Generosity On Search Intensity: New Evidence From Earnings Histories, Lewis Warren

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper provides the first nationally representative estimates of how unemployment insurance (UI) generosity in the United States affects the search intensity of unemployed individuals using individual level variation in UI generosity. The paper expands the current literature through fully simulating monetary eligibility and entitlement to unemployment insurance at the individual level where past studies have been unable to examine monetary eligibility and have relied on state variations in the maximum weekly benefit amount which can differ significantly from an individual’s actual benefit amount. To simulate monetary eligibility and entitlement, work histories of unemployed respondents were obtained through fully matching …

Childhood Stress: A Qualitative Analysis Of The Intergenerational Circumstances Of Child Hunger, Mariana Chilton, Molly Knowles

University of Kentucky Center for Poverty Research Discussion Paper Series

Adverse Childhood Experiences (ACEs), 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.

Distributional Effects Of Welfare Reform Experiments: A Panel Quantile Regression Examination, Carlos Lamarche, Robert Paul Hartley

University of Kentucky Center for Poverty Research Discussion Paper Series

In an influential article, Bitler, Gelbach and Hoynes (American Economic Re- view, 2006; 96, 988-1012) illustrate the importance of estimating heterogeneous impacts of welfare reform experiments. They find that the mean treatment effect offers an uninfor- mative summary of opposing effects, while the treatment effects are significantly different across quantiles. We replicate their results and evaluate the robustness of their findings to accounting for individual-specific heterogeneity possibly associated with welfare program participation. We find results that are in general similar to Bitler’s et al. findings, although the interpretation of labor supply effects in the upper tail is revised. We find …

Income, Program Participation, Poverty, And Financial Vulnerability: Research And Data Needs, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

The aim of this paper is to assess the adequacy of the data infrastructure in the United States to meet future research and policy evaluation needs as it pertains to income, program participation, poverty, and financial vulnerability. I first discuss some major research themes that are likely to dominate policy and scientific discussions in the coming decade. This list includes research on the long-term consequences of income inequality and mobility, issues of transfer-program participation and intergenerational dependence, challenges with poverty measurement and poverty persistence, and material deprivation. I then summarize what information we currently collect in the U.S. that is …

Effects Of Maternal Depression On Family Food Insecurity, Kelly Noonan, Hope Corman, Nancy E. Reichman

University of Kentucky Center for Poverty Research Discussion Paper Series

Theory suggests that adverse life events—such as unemployment or health shocks—can result in food insecurity, which has increased substantially in the U.S. over the past decade alongside the obesity epidemic. We test this proposition by estimating the effects of a specific and salient mental health event—maternal depression during the postpartum year—on child and family food insecurity. Using data from the Early Childhood Longitudinal Study—Birth Cohort, we estimate the effects of maternal depression on food insecurity using both single- and twostage models, and explore potential buffering effects of relevant public assistance programs and supports. We find that moderate to severe maternal …