AGE DIFFERENCES AND MACROECONOMIC EFFECTS ON FOOD STAMP PROGRAM PARTICIPATION

This study examines Food Stamp Program (FSP) participation patterns with an emphasis on macroeconomic effects and age differences. Entry into and exit out of the program are examined with data from the Survey of Income and Program Participation 2004 panel using probit techniques. The results indicate that young adults easily enter the FSP but quickly move out. Older people are hesitant to enter the FSP but they stay on longer compared to their younger counterparts. The estimation results confirm the common belief that economic dynamics and FSP participation are negatively related. When the unemployment rates rise, the likelihood of entry and continuation on food stamps increases. This study also documents that the macroeconomic effects on FSP transitions vary by age.