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


  • James P. Smith

    (RAND Corporation)


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 0403012, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpla:0403012
    Note: Type of Document - pdf; pages: 19. Journal of Human Resources, Volume 10, Number 1, Winter 1975, pp. 25-43

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    References listed on IDEAS

    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. 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.
    3. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters, in: Aspects of Labor Economics, pages 63-105, National Bureau of Economic Research, Inc.
    4. 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.
    5. James P. Smith, 2004. "Assets and Labor Supply," Labor and Demography 0404003, University Library of Munich, Germany.
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    JEL classification:

    • J - Labor and Demographic Economics


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