A new idea for welfare reform
AbstractThis article analyzes several proposals to build work incentives into the U.S. welfare system. It concludes that the most cost effective way to do that is to offer a work subsidy to all low-income single parents—in other words, to simply pay them for working in the labor market. This conclusion is based on a model of the labor force participation behavior of low-income single mothers that the author developed with Robert Moffitt. Among the proposals evaluated in the article, besides the work subsidy, are proposals to reduce the rate that welfare benefits are reduced when welfare recipients work, to provide wage subsidies to low-wage workers, to expand the earned income tax credit, and to subsidize the fixed costs of working.
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Bibliographic InfoArticle provided by Federal Reserve Bank of Minneapolis in its journal Quarterly Review.
Volume (Year): (1995)
Issue (Month): Spr ()
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- Bruce D. Meyer & James X. Sullivan, 2001.
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8298, National Bureau of Economic Research, Inc.
- Meyer, Bruce D. & Sullivan, James X., 2004. "The effects of welfare and tax reform: the material well-being of single mothers in the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1387-1420, July.
- Luis Ayala & César Pérez, .
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2-03, Instituto de Estudios Fiscales.
- Luis Ayala & César Pérez, 2005. "Macroeconomic conditions, institutional factors and demographic structure: What causes welfare caseloads?," Journal of Population Economics, Springer, vol. 18(3), pages 563-581, 09.
- Bruce D. Meyer & James Xavier Sullivan, 2000. "The Effects of Welfare Reform: The Living Conditions of Single Mothers in the 1980s and 1990s," JCPR Working Papers 206, Northwestern University/University of Chicago Joint Center for Poverty Research.
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