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On the Labor-Supply Effects of Age-Related Income Maintenance Programs

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  • James P. Smith

    (RAND)

Abstract

In this paper a model is developed which is designed to capture the channels through which income transfer programs are likely to affect working hours of family members. The model demonstrates that the appropriate framework is neither a pure one-period or life-cycle one, but rather one that contains elements of both models. The final section illustrates a method of estimating the labor-supply reactions to income maintenance programs. The labor-supply effects are functions of the duration of a family's participation and the relevant importance of male market investment.

Suggested Citation

  • James P. Smith, 2004. "On the Labor-Supply Effects of Age-Related Income Maintenance Programs," Labor and Demography 0402006, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0402006
    Note: Type of Document - pdf; pages: 19. The Journal of Human Resources, Vol. 10, No. 1, Winter 1975, pp. 25-43
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    References listed on IDEAS

    as
    1. Charles E. Metcalf, 1974. "Predicting the Effects of Permanent Programs from a Limited Duration Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 9(4), pages 530-555.
    2. Green, Christopher & Tella, Alfred, 1969. "Effect of Nonemployment Income and Wage Rates on the Work Incentives of the Poor," The Review of Economics and Statistics, MIT Press, vol. 51(4), pages 399-408, November.
    3. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352-352.
    4. James P. Smith, 2004. "Assets and Labor Supply," Labor and Demography 0404003, EconWPA.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • J - Labor and Demographic Economics

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