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A major use of the SIPP has been to evaluate the use of and eligibility for government programs and to analyze the impacts of modifications to those programs. These kinds of information help in evaluating the economic status of the nation, show how things change, and give policy makers the facts that enable them to make better economic decisions.
Although the SIPP design allows for both longitudinal and cross-sectional data analysis, SIPP is intended to primarily to support longitudinal studies. SIPP's longitudinal features allow the analysis of selected dynamic characteristics of the population, such as changes in income, eligibility for and participation in transfer programs, household and family composition, labor force behavior, and other associated events.
One of the most important reasons for conducting SIPP is to gather detailed information on participation in transfer programs. Data from SIPP allow analysts to examine concurrent participation in multiple programs. SIPP data can also be used to address the following types of questions:
Because SIPP is a longitudinal survey, capturing changes in household and family composition over a multiyear period, it can also be used to address the following questions:
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