Study Finds Strong Social Ties Among Low-Income Urban Families May Limit Use of Government Aid

For many low-income families, the first call for help doesn’t go to the government — it goes to a relative, a neighbor, or a community organization. A new study by IDS affiliate Denia Garcia of UW-Madison’s La Follette School of Public Affairs suggests that families that have access to these informal supports, or forms of social capital, are less likely to turn to federal assistance programs. This is a challenging finding because although having strong social ties is beneficial, Garcia explains that social capital is an inadequate solution to meet the resource needs of low-income families. For the study, Garcia looked at how social capital matters for the ways that low-income families seek help. In this context of the study, social capital refers to the potential to get help from people or organizations in one’s network rather than whether someone actually gets help. For the study, Garcia used a dataset that followed the lives of over 3,000 urban mothers over several years, examining what factors influenced whether families enrolled in food stamps, officially known as SNAP (Supplemental Nutritional Assistance Program), or cash welfare assistance through TANF (Temporary Assistance for Needy Families). One of the clearest findings was that families with high social capital – for example, families who reported that they knew someone they could borrow $1,000 from if needed – were significantly less likely to use either program. When people have a financial lifeline within their personal network, they tend to use it before seeking government help. Childcare emerged as an important area of social capital in the study. Mothers whose children attended childcare centers that actively brought parents together — through associations, volunteer opportunities, and social events — were far less likely to rely on SNAP or TANF. Garcia says, “organizations, not just individuals, are sources of social capital.” These settings may connect parents to jobs, resources, or information that reduces financial strain. Garcia also found that neighborhood relationships mattered. In the poorest communities, mothers who didn’t know any of their neighbors were more likely to use food stamps than those with local social ties. This points to a pattern where the most socially isolated residents in the most disadvantaged neighborhoods turn to government programs. The study shows that it’s important to consider multiple levels and sources of social capital. While strong social connections clearly help families get by, Garcia cautions that they shouldn’t be expected to replace government support. From a public policy perspective, Garcia says that her findings demonstrate the importance of both social and government support for low-income families. “Programs like SNAP and TANF help families with low incomes cover some of their basic needs and worry less about making it month to month,” she states. Garcia emphasizes that many people who qualify for assistance don’t receive it, partly because the application process is time-consuming and burdensome. Making programs easier to access could go a long way toward reaching those who need help most, especially in times of economic downturn when social networks are tapped out.