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The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession

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  • Marianne Bitler
  • Hilary Hoynes
Abstract
Much attention has been given to the large increases in safety net spending during the Great Recession. We examine the relationship between poverty, the safety net, and business cycles historically and test whether there has been a significant change in this relationship. We find that post-welfare reform, Temporary Assistance for Needy Families did not respond during the Great Recession and extreme poverty is more cyclical than in prior recessions. Food Stamps and Unemployment Insurance are providing more protection--or no less protection--in the Great Recession, and there is some evidence of less cyclicality for 100% poverty.

Suggested Citation

  • Marianne Bitler & Hilary Hoynes, 2016. "The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 403-444.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/683096
    DOI: 10.1086/683096
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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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