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Efficiency Versus Equity in the Provision of In-Kind Benefits: Evidence from Cost Containment in the California WIC Program

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Listed:
  • Meckel, Katherine

    (University of California, San Diego)

  • Rossin-Slater, Maya

    (Stanford University)

  • Uniat, Lindsey

    (Yale University)

Abstract
The government often contracts with private firms to deliver in-kind safety net benefits. These public-private partnerships generate agency problems that could increase costs, but cost-containment reforms may discourage firm participation. We study a 2012 reform of California's Special Supplemental Nutrition Program for Women, Infants, and Children that reduced the number of small vendors. We show that within-ZIP-code access to small vendors increases take-up among first-time and foreign-born mothers, suggesting that small vendors are distinctly effective at lowering take-up barriers among women with high program learning costs. Thus, cost containment reforms may have unintended consequences of inequitably reducing program access.

Suggested Citation

  • Meckel, Katherine & Rossin-Slater, Maya & Uniat, Lindsey, 2020. "Efficiency Versus Equity in the Provision of In-Kind Benefits: Evidence from Cost Containment in the California WIC Program," IZA Discussion Papers 12957, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12957
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    More about this item

    Keywords

    WIC program; benefit take-up; in-kind transfers; cost containment;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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