Description:

Speaker: Tessa Bonomo

Title: Vendor Incentives and Access to In-Kind Transfer Programs: Evidence from the WIC Program

Abstract: The WIC program is an important source of nutrition assistance for low-income women and children in the U.S. However, the number of grocery stores that accept WIC vouchers has declined substantially over time, potentially limiting access to benefits for eligible households. In this project, I assess the role of local cost shocks in driving vendor exit from the WIC program using a matched difference-in-differences design. I find a 5% decline in the number of WIC vendors in the 12 months following minimum wage increases, which is driven by a 13% decline among independent stores (with no change among chain stores). At the same time, I find minimal change in the presence of grocery stores overall and in the number of stores accepting SNAP benefits, suggesting this decline is specific to the structure of the WIC program. I then explore how these declines in vendor presence impact WIC beneficiaries, finding a 5% decline in the number of families redeeming WIC benefits, concentrated in ZIP codes with the largest decline in WIC vendors.