Strategies for packaging income and means-tested benefit sources among WIC program participants

Abstract

Objective: We explore common income/benefits combinations by demographic characteristics among low-income families with young children. Understanding how such families package their income sources can help identify critical components of the economic safety net and the relative contributions these income sources make in supporting low-income families’ basic needs. Method: We used longitudinal state administrative data on means-tested benefits, child support, and earnings, as well as data from a survey of primary caregivers (N = 1,065) in Wisconsin families receiving WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) benefits in 2010–2011. We used cluster analysis techniques to identify unique income packaging strategies. Results: Respondents were most likely to rely on Medicaid, followed by SNAP (Supplemental Nutrition Assistance Program) and employment income. Medicaid and Supplemental Security Income were the most stable safety net components. We identified 4 groups distinguished by the extent to which individuals worked for pay and received various types of benefits or child support and found significant demographic differences across clusters. Conclusions: This study reaffirms past findings illustrating the complexity of the U.S. economic safety net and highlighting the need for staff across programs serving low-income families to understand eligibility criteria and rules of local safety net components.