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In-Kind Transfers and Work Incentives

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  • Leonesio, Michael V
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    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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    Bibliographic 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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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Wu, Ximing & Perloff, Jeffrey M. & Golan, Amos, 2002. "Effects of Government Policies on Income Distribution and Welfare," Institute for Research on Labor and Employment, Working Paper Series qt6jx7h62v, Institute of Industrial Relations, UC Berkeley.
    2. Robert Moffitt, 2002. "Welfare Programs and Labor Supply," NBER Working Papers 9168, National Bureau of Economic Research, Inc.
    3. Skoufias, Emmanuel & Gonzalez-Cossio, Teresa, 2008. "The Impacts of Cash and In-Kind Transfers on Consumption and Labor Supply: Experimental Evidence from Rural Mexico," Policy Research Working Paper Series 4778, The World Bank.
    4. Gary Painter, 1999. "Low-Income Housing Assistance: Its Impact on Labor Force and Housing Program Participation," Working Paper 8667, USC Lusk Center for Real Estate.

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