393P
Before and after the Great Recession: The Responsiveness of Public Transfer Programs on Material Hardship Among Older Adults
This study examined the responsiveness of public transfer programs to the material hardship before and after the Great Recession for older adults. Multiple studies found that the Great Recession was associated with high unemployment and devastating economic consequences (Bosworth, 2012; Pfeffer, Danziger, & Schoeni, 2013). In particular, older adults between 50 and 61 were one of the most vulnerable groups during the weak economy due to a loss of earning, low probability of reemployment, poor preparation for retirement, and low accessibility to protective programs relatives to other disadvantaged age groups (Johnson & Butrica, 2012). Consequently, public transfer programs had the potential to play a vital role in mitigating the consequence of the recession for this group. However, relatively little was known about how and what extent public transfer programs respond to the material hardships of housing, bill-paying, food, and health in this particular group before and after the Great Recession. This study was designed to fill the gaps in the preceding research.
Methods
This study analyzed data from the 2004 and 2008 panel of the Survey of Income and Program Participation. The topical module data from wave 5 in 2004 and wave 6 in 2008 were combined with the core data for each panel to obtain information on material hardship. The sample included older adults aged between 50 and 61 (2004: N=13,996, 2008: N=14,582). As a dependent variable, public transfer programs included SNAP, TANF, Medicaid, and Housing. Four types of material hardship were measured, including housing, bill-paying, food, and health hardship. Logistic regression was used to examine changes in the receipt of each program before and after the Great Recession and to examine the relationship between material hardship and public transfer program, controlling for demographic characteristics and state unemployment rate.
Results
The descriptive results indicate increase in four material hardships after the Great Recession. Nevertheless, only the incidence of SNAP increases among public transfer program at significance level [F(1,114)=51.90, p<.001]. This finding is consistent with the result of multivariate logistic regression that the probability of receiving SNAP after the recession increases by 69 percent [odds ratio (OR)=1.68]. Specifically, those who experience housing (OR= 1.24), bill (OR= 2.04), and food hardship (OR= 1.32) are more likely to receive SNAP (p<.05). However, there is no relationship between four material hardships and other public transfer programs.
Implications
With the exception of SNAP, there is lack of appropriate responsiveness of public transfer program to the four types of hardships. Older adults with SNAP are able to reallocate their current funds more freely by saving food costs; this, in turn, give them greater financial autonomy. Nevertheless, for those having multiple material hardships without any alternative supports, providing sufficient public transfer programs in a timely manner is very important to achieve optimal living condition. Otherwise, there will be increased risk of being under poverty in later stage of their lives, which could cause additional social costs to secure them.