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In-Kind Transfers and Work Incentives

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Author Info
Leonesio, Michael V
Abstract

Recent developments in rationing theory are used to examine the differences between the effects of in-kind and cash transfers on labor supply. It is not possible to tell a priori which type of transfer will cause the greater reduction in hours of work; the answer depends on the extent to which in-kind transfers distort consumption choices and on the relationship between the transferred commodities and leisure. Hicks-Allen complements can cause greater reductions in labor supply than equally generous cash transfers, while strong Hicks-Allen substitutes can induce increases in market work. Copyright 1988 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 6 (1988)
Issue (Month): 4 (October)
Pages: 515-29
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Handle: RePEc:ucp:jlabec:v:6:y:1988:i:4:p:515-29

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  1. Ximing Wu & Jeffrey Perloff & Amos Golan, 2002. "Effects of Government Policies on Income Distribution and Welfare," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 950, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
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  2. Robert Moffitt, 2002. "Welfare Programs and Labor Supply," NBER Working Papers 9168, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-12-17.

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