Financial incentives and welfare reform in the United States
This paper uses a microsimulation model to ask whether welfare recipients in the United States would work full-time if offered an earnings supplement that was conditioned on full-time employment. The simulations suggest that the earnings supplement would increase full-time employment, with little additional cash transfer cost to the government. In contrast, financial incentives currently being used by many of the states are increasing employment and income, but are encouraging primarily part-time employment. Encouraging full-time employment is particularly important in light of new time limits on welfare receipt. Faced with a loss of welfare benefits, many recipients may find that part-time earnings do not allow them to be economically self-sufficient. © 2001 by the Association of Public Policy Analysis and Management.
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Volume (Year): 20 (2001)
Issue (Month): 1 ()
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References listed on IDEAS
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- Rebecca M. Blank & David Card & Philip K. Robins, 1999.
"Financial Incentives for Increasing Work and Income Among Low- Income Families,"
- Rebecca M. Blank & David Card & Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," NBER Working Papers 6998, National Bureau of Economic Research, Inc.
- Rebecca M. Blank, David Card and Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," Economics Working Papers E99-264, University of California at Berkeley.
- Rebecca M. Blank & David Card & Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," JCPR Working Papers 69, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Blank, Rebecca M. & Card, David & Robins, Philip K., 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," Department of Economics, Working Paper Series qt2f15x7sg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Charles Michalopoulos & Philip K. Robins & David Card, 2000. "When Financial Incentives Pay for Themselves: Early Findings from the Self-Sufficiency Project's Applicant Study," JCPR Working Papers 133, Northwestern University/University of Chicago Joint Center for Poverty Research.
- David Card & Philip K. Robins, 1996. "Do Financial Incentives Encourage Welfare Recipients to Work? Evidence from a Randomized Evaluation of the Self-Sufficiency Project," NBER Working Papers 5701, National Bureau of Economic Research, Inc.
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