AN ECONOMIC ANALYSIS OF THE FOOD STAMP PROGRAM AFTER WELFARE

REFORM

Erik Speicher

February, 2003

Economics

Abstract

This thesis explores the effects the changes from welfare reform have had on the Food
Stamp Program. The hypothesis states will the passing of the Personal Responsibility
and Work Opportunity Reconciliation Act create a negative impact on the food stamp
participation rates. The Food Stamp Program effectively provides low-income
households with means to buy food. Through the use of a regression the hypothesis is
tested using a series of economic and welfare reform explanatory variables. If the
changes from the reform have created a negative impact will the program be able to
continue to act as an economic stabilizer? This is an especially pressing issue
considering it is one of the only entitlement programs left in the United States welfare
system.

KEYWORDS: (Food Stamp Program, Welfare Reform, Recession)