Administrative Burden in the Safety Net: Spillovers and Solutions

Session Submission Type: Panel

Abstract

This panel focuses on spillovers and solutions to administrative burdens in the means-tested safety net. Covering a range of programs — from TANF to tax credits — and populations across the country — from California to West Virginia — the papers on this panel present new findings on administrative burdens to better understand take-up, program attachment, and impacts on employment. Combined, the findings provide new insight for policy makers with a goal to improve the efficiency, equity, and effectiveness of these programs and policies.

The first two papers study ways in which spillovers from administrative burden for one program can influence a broader set of outcomes – including participation in other programs. In the first paper, Richard and Bart study the impacts of changing TANF work requirements on both program participation and labor supply in Michigan. Using administrative data, they show that a policy reform that increased penalties for violating these requirements led to decreases in TANF program attachment, as well as reductions in SNAP and Medicaid enrollment among those still eligible. At the same time, they provide evidence that increasing penalties led to decreases in formal employment. In the second paper, Nadal-Fernandez, Pepin, and Schrader study the administrative burden that states face when responding to federal-level changes in TANF work requirements — including when a state is out of compliance. They start by empirically estimating the effects of the different components of these policy changes on low-income families, but they also discuss how compliance can lead to unintended consequences that work against the goal of promoting self-sufficiency.

The final two papers study solutions to well-documented administrative burden challenges. In the third paper, Santillano and Thomas present research on the Benefits Navigator — a software tool for caseworkers to decrease the informational costs of navigating the safety net in Los Angeles — including both benefits and tax credits. Using administrative data from the tool and survey data from an initial pilot, the authors provide promising evidence that the tool can lead to increases in both program take-up and earnings. The authors also describe the empirical value of a tool that highlights benefit-earnings trade-offs for clients to remove uncertainty around employment decisions. In the final paper, Barofsky, Giannella, Herd, Jilke, and Moynihan study the impacts of an income-verification process change for Medicaid enrollment. In partnership with West Virginia and a technology company, the authors created and evaluated a process for income verification that favors reliable sources and uses agreed-upon defaults. This resulted in more efficient and timely eligibility processing with an overall increase in approvals — particularly for lower income individuals and children.

Policy Area

• Poverty and Income Policy

Secondary Policy Area

• Family and Child Policy

Chair

• Chloe N East, University of Colorado - Boulder

Discussants

• Eric Giannella, Georgetown University

• David C Phillips, University of Notre Dame

Organizer

• Robert Santillano, Santillano Research

Individual Presentations

• Penalties in the Safety Net: Effects of Work Requirement Enforcement on Program Participation and Labor Supply - Presenting Author: Katherine Richard, Georgetown University

• Changing TANF Rules: Estimating effects on state compliance and the well-being of low-income families - Presenting Author: Josep M Nadal-Fernandez, Tulane University; Non-Presenting Co-Author: Gabrielle Pepin, W. E. Upjohn Institute for Employment Research; Non-Presenting Co-Author: Kane Schrader, W. E. Upjohn Institute for Employment Research

• Corralling the safety net: Can a benefit navigator improve take-up and employment? - Presenting Author: Robert Santillano, Santillano Research; Non-Presenting Co-Author: Jaime Thomas, Format Consulting LLC

• Changes to Medicaid Enrollment Income Verification Logic in West Virginia Increased Application Approvals - Presenting Author: Jeremy Barofsky, Georgetown University; Non-Presenting Co-Author: Eric Giannella, Georgetown University; Non-Presenting Co-Author: Pamela Herd, Georgetown University; Non-Presenting Co-Author: Sebastian Jilke, Georgetown University; Non-Presenting Co-Author: Donald Moynihan, University of Michigan