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BPEA | Spring 2018

Safety net investments in children

Hilary W. Hoynes and
Hilary W. Hoynes Professor of Public Policy and Economics, Haas Distinguished Chair in Economic Disparities - University of California, Berkeley
Diane Whitmore Schanzenbach
Diane Whitmore Schanzenbach Nonresident Senior Fellow - Economic Studies, The Hamilton Project

March 8, 2018

People wait in line at the Fred Jordan Mission annual back to school giveaway of shoes, clothing and backpacks for more than 4,000 homeless and underprivileged children in Los Angeles, California, United States, October 1, 2015.
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Editor's note:

This paper is part of the Spring 2018 edition of the Brookings Papers on Economic Activity, the leading conference series and journal in economics for timely, cutting-edge research about real-world policy issues. Research findings are presented in a clear and accessible style to maximize their impact on economic understanding and policymaking. The editors are Brookings Nonresident Senior Fellow and Northwestern University Economics Professor Janice Eberly and James Stock, Brookings Nonresident Senior Fellow and Harvard University economics professor. Read summaries of all six papers from the journal here.

Abstract

In this paper, we examine what groups of children are served by core childhood social safety net programs—including Medicaid, EITC, CTC, SNAP, and AFDC/TANF—and how they have changed over time. We find that virtually all gains in spending on the social safety net for children since 1990 have gone to families with earnings, and to families with income above the poverty line. These trends are the result of welfare reform and the expansion of in-work tax credits. We review the available research and find that access to safety net programs during childhood improves outcomes for children and society over the long run. This evidence suggests that the recent changes to the social safety net may have lasting negative impacts on the poorest children.

Citations

Hoynes, Hilary W., and Diane Whitmore Schanzenbach. 2018. “Safety net investments in children.” Brookings Papers on Economic Activity, Spring, 89-150.

Conflict of interest disclosure

Hilary W. Hoynes is a board member for the California Budget & Policy Center. The authors did not receive financial support from any firm or person for this paper or from any firm or person with a financial or political interest in this paper. With the exception of the aforementioned, they are currently not officers, directors,or board members of any organization with an interest in this paper. No outside party had the right to review this paper before circulation.

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Authors

Hilary W. Hoynes Professor of Public Policy and Economics, Haas Distinguished Chair in Economic Disparities - University of California, Berkeley
Diane Whitmore Schanzenbach Nonresident Senior Fellow - Economic Studies, The Hamilton Project
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Economic Studies