Sources: Weighted Survey of Income and Program Participation and state policy and economic data from 1992 to 2011. Notes: SNAP= Supplemental Nutrition Assistance Program, TANF= Temporary Assistance for Needy Families. Based on three two-stage least squares regression models that control for observable and unobservable differences between households that receive benefits versus households that do not receive benefits.(See table 1 for details.) Low-income households are those with income below 200 percent of the federal poverty level. Number of hardships includes up to nine hardships:(1) general report of not meeting essential expenses,(2) inability to pay rent or mortgage,(3) eviction,(4) unpaid utility bills,(5) utility service cut,(6) phone service cut,(7) unmet medical need,(8) unmet dental need, and (9) food insufficiency.

* p< 0.1,** p< 0.05

Focusing on a more diffuse measure of state and federal policies instead of direct program participation, we find evidence that a $1 increase in the minimum wage (but not the earned income tax credit) reduces material hardship by 4–6 percent among low-income families with children. 5