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The Labor Supply of Female Household Heads, or AFDC Work Incentives Don't Work Too Well


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  • Frank Levy


This paper presents an approximate method for estimating the labor supply function of female household heads who may or may not be receiving Aid to Families with Dependent Children (AFDC). Estimation results indicate that any AFDC parameter change which increases a program's breakeven income will reduce expected hours of work in the population. In particular, liberalized work incentives may encourage current recipients to increase labor supply, but these increases will be more than offset by work reductions of former nonrecipients who are now attracted onto the program.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 14 (1979)
Issue (Month): 1 ()
Pages: 76-97

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Handle: RePEc:uwp:jhriss:v:14:y:1979:i:1:p:76-97

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Cited by:
  1. H. W. Hoynes, . "Work, Welfare, and Family Structure: A Review of the Evidence," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1103-96, University of Wisconsin Institute for Research on Poverty.
  2. Philip de Jong & Robert Haveman & Barbara Wolfe, 1988. "Labor and Transfer Income and Older Women's Work: Estimates From the United States," NBER Working Papers 2728, National Bureau of Economic Research, Inc.
  3. Flood, Lennart & Hansen, Jörgen & Wahlberg, Roger, 2003. "Household Labor Supply and Welfare Participation in Sweden," IZA Discussion Papers 769, Institute for the Study of Labor (IZA).
  4. Ermisch, John F. & Wright, Robert E., 1995. "Lone parenthood and employment: male-female differences in Great Britain," Labour Economics, Elsevier, Elsevier, vol. 2(3), pages 299-317, September.
  5. Gary Painter, 1999. "Low-Income Housing Assistance: Its Impact on Labor Force and Housing Program Participation," Working Paper, USC Lusk Center for Real Estate 8667, USC Lusk Center for Real Estate.
  6. Carole Miller & Jing Xiao, 1999. "Effects of birth spacing and timing on mothers' labor force participation," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 27(4), pages 410-421, December.


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