In 2000, 8.8 million children received food stamps, making the
Food Stamp
Program a significant component in the well-being of children
in many low-income households. To shed light on the efficacy of
food stamps in helping households meet basic needs, ERS researchers
added the value of food stamp benefits to household income and then
measured the effect on child poverty rates. This "food stamp
effect" reduced the number of children in poverty in 2000 by
4 percent, lifting about 500,000 children out of poverty. Such reductions
in child poverty are limited by the structure of the Food Stamp
Program, where the value of benefits declines as a household's income
increases. Although the Food Stamp Program is not designed to reduce
child poverty, food stamps do augment the purchasing power of poor
households and can improve the well-being of people living in poverty.
Augmenting income with the value of food stamp benefits has the
effect of reducing child poverty by 20 percent or more. The analysis
of the depth and severity of poverty reveals that the Food Stamp
Program plays an important role in improving the welfare of children
in low-income households.
