The Effects of the Macroeconomy and Welfare Reform on Food Stamp Caseloads

David N. Figlio, Craig G. Gundersen, and James P. Ziliak

Elsewhere No. (0208), February 2002

From 1994 to 1998 there was an unprecedented decline in the number of food stamp recipients. During this period there was an extended economic expansion and the welfare system underwent a major transformation. The authors quantify the relative impacts of these two factors with the use of state-level data from federal fiscal years 1980 to 1998. The evidence suggests that macroeconomic conditions, as well as political factors, played a large role in explaining state-to-state differences in food stamp caseload changes but changes in welfare policies had only a small influence on changes in food stamp caseloads.

Keywords: Food Stamp Caseloads, Business Cycle, Welfare Reform, Recession, Economic Expansion

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Updated date: February 2002