The Impact of Earnings Disregards on the Behavior of Low Income Families
This 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.
|Date of creation:||May 2008|
|Date of revision:|
|Publication status:||published as The Impact of Earnings Disregards on the Behavior of Low-Income Families Jordan D. Matsudaira, Rebecca M. Blank Article first published online: 10 OCT 2013 DOI: 10.1002/pam.21725 © 2013 by the Association for Public Policy Analysis and Management Issue Journal of Policy Analysis and Management Journal of Policy Analysis and Management Volume 33, Issue 1, pages 7–35, Winter 2014|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Bruce D. Meyer & Dan T. Rosenbaum, 1999.
"Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers,"
NBER Working Papers
7363, National Bureau of Economic Research, Inc.
- Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 1063-1114.
- Bruce D. Meyer & Dan T. Rosenbaum, 1998. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," JCPR Working Papers 32, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Bruce D. Meyer, 2002. "Labor Supply at the Extensive and Intensive Margins: The EITC, Welfare, and Hours Worked," American Economic Review, American Economic Association, vol. 92(2), pages 373-379, May.
- Blank, Rebecca M., 2002.
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Elsevier, vol. 9(4), pages 451-468, September.
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
Journal of Economic Literature,
American Economic Association, vol. 40(4), pages 1105-1166, December.
- Alan J. Auerbach & Joel Slemrod, 1997. "The Economic Effects of the Tax Reform Act of 1986," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 589-632, June.
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