The Impact of Earnings Disregards on the Behavior of Low‐Income Families
AbstractThis paper investigates the impact of changes in earnings disregards for welfare assistance received by single mothers following welfare reform in 1996. Some states adopted much higher earnings disregards (women could work full time and still receive welfare), while other states did not. We explore the effect of these changes on women's labor supply and income using several data sources and multiple estimation strategies. Our results indicate these changes had little effect on labor supply or income. We show this is because few women used these earnings disregards. This is surprising and we discuss why this might occur.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.
Volume (Year): 33 (2014)
Issue (Month): 1 (01)
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Web page: http://www3.interscience.wiley.com/journal/34787/home
Other versions of this item:
- Jordan D. Matsudaira & Rebecca M. Blank, 2008. "The Impact of Earnings Disregards on the Behavior of Low Income Families," NBER Working Papers 14038, National Bureau of Economic Research, Inc.
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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