We estimate a model of food stamp program participation allowing for differences between refugees and immigrants. The model examines pre and post reform participation. It further isolates the effect of local labor markets. Using auxiliary information from the INS’ Statistical Yearbooks we are able to identify the impact refugee status has on participation. We demonstrate that regressions using ad hoc variables are subject to severe measurement error bias. We also correct for measurement error in the report of food stamp participation. The model estimates demonstrate the importance of both corrections. Our results demonstrate that failing to separate refugees from immigrants substantially biases the coefficient on immigrants.
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DP2003-05_bollinger_hagstrom.pdf