What is online Supplemental Nutrition Assistance Program shopping worth? An implicit wage rate approach using meal-kit pricing and time-use data

Abstract

In 2023 all Supplemental Nutrition Assistance Program (SNAP) participants were allowed to start grocery shopping online. This paper provides the first answer to the question: What is online shopping worth to the SNAP participant in dollars? Using meal-kit pricing and time-use data, an implicit wage rate and dollar value distribution are estimated for time saved in home food production from online grocery shopping. We report the 95^th, 75^th, 50^th, 25^th, and 5^th percentile results. We simulate saving 50%, 75%, and 90% of grocery shopping time and estimate the savings per hour per meal. For example, if online shopping saved 75% of shopping time, the median saving per hour per meal would be $2.59. If a family of four made 15 to 30 meals a month, this corresponds to an implicit 5% to 11% increase in the benefits per month due to the time saved. The implicit wage rate provides simple and elegant economic insights into many aspects of food production and consumption not obtainable by just considering the money price.