Abstract
The Supplemental Nutrition Assistance Program (SNAP), the only universal US means-tested safety net program, has a low benefit-reduction rate. Thus, many SNAP recipients are working. We apply recent methods to study whether there is evidence of moral hazard among SNAP recipients. We see if individuals respond to incentives in SNAP eligibility by bunching near kink points in the budget set. While this responsiveness has been shown for various taxes and tax credits, little work has examined responsiveness of safety net program participants to kinks in their eligibility formulae. We use novel administrative data on eligibility determination and find little evidence of responsiveness around these kinks.
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