Retailer Proximity and Nutrition Program Redemptions: Evidence from the Summer Electronic Benefit Transfer for Children Program

Abstract

Although nearly all Supplemental Nutrition Assistance Program benefits are redeemed, a moderate share of Special Supplemental Nutrition Program for Women, Infant, and Children (WIC) benefits go unredeemed. Some hypothesize that the redemption rate differences are due to the lower density of WIC-authorized retailers. For the 2012 Summer Electronic Benefit Transfer for Children sites, this paper finds no consistent evidence of a relationship between redemption rates and retailerproximity. In fact, households often travel past the closest participating retailer to redeem their benefits. These findings are consistent with recent food deserts literature, which suggests that correlations between retailer environment and nutritional outcomes are not causal. Rather, it appears that differences in redemption rates may be related to the restrictions on what foods can be redeemed in what form with WIC.