Why Do So Few Elderly Use Food Stamps?
Recent estimates suggest that less than thirty-five percent of eligible elderly persons participate in the Food Stamp Program. Using longitudinal data from the Panel Study of Income Dynamics and other data sources, this paper uses a variety of methods, including pooled logit regression, individual fixed-effects models, and techniques from duration analysis, to investigate the reasons behind this low take-up and its implications for the well-being of the elderly. The results indicate that the low rate of participation of the elderly is best explained by a low initial rate of adoption of the program. Once enrolled, the elderly are no more likely to leave the program than the non-elderly. The evidence also suggests that participation is strongly motivated by economic incentives. The lower expected benefit level and relatively better financial situation of the elderly account for about one third of the difference in take-up between the elderly and the non-elderly. In addition, information deficiencies impede participation for elderly individuals. Nearly 60 percent of eligible nonparticipants are unaware of their eligibility or believe themselves to be ineligible. Finally, food assistance received under the Elderly Nutrition Program appears to crowd out participation in the Food Stamp Program, as some elderly individuals substitute toward group and home-delivered meals. The paper concludes by showing that despite the low take-up of food stamps, elderly eligible nonparticipants are, on average, more food sufficient, spend more on food consumption, and eat more nutritious food than participants. Low take-up in the Food Stamp Program does not appear to be a concern for the overall nutritional well-being of the elderly.
