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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

Abstract

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.

Suggested Citation

  • Frank Levy, 1979. "The Labor Supply of Female Household Heads, or AFDC Work Incentives Don't Work Too Well," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 76-97.
  • Handle: RePEc:uwp:jhriss:v:14:y:1979:i:1:p:76-97
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    Cited by:

    1. Fortin, Bernard, 1997. "Dépendance à l’égard de l’aide sociale et réforme de la sécurité du revenu," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(4), pages 557-573, décembre.
    2. Lennart Flood & Jörgen Hansen & Roger Wahlberg, 2004. "Household Labor Supply and Welfare Participation in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    3. 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.
    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.
    5. H. W. Hoynes, "undated". "Work, Welfare, and Family Structure: A Review of the Evidence," Institute for Research on Poverty Discussion Papers 1103-96, University of Wisconsin Institute for Research on Poverty.
    6. Ermisch, John F. & Wright, Robert E., 1995. "Lone parenthood and employment: male-female differences in Great Britain," Labour Economics, Elsevier, vol. 2(3), pages 299-317, September.
    7. Carole Miller & Jing Xiao, 1999. "Effects of birth spacing and timing on mothers' labor force participation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(4), pages 410-421, December.

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