Welfare Programs and Labor Supply

Robert Moffitt

227 citations0/0 files storedNational Bureau of Economic Research

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Gender, Labor, and Family Dynamics Labor market dynamics and wage inequality Retirement, Disability, and Employment

Abstract

The labor supply and other work incentive effects of welfare programs have long been a central concern in economic research.Work has also been an increasing focus of policy reforms in the U.S., culminating with a number of major policy changes in the 1990s whose intent was to increase employment and earnings levels of welfare recipients and other disadvantaged individuals.This paper reviews the economic research on this topic, covering both the theoretical models that have been developed as well as the empirical findings from econometric studies of the effects of existing welfare programs on labor supply.

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References

1999Labor Supply: A Review of Alternative Approaches 1995Precautionary Saving and Social Insurance 1983An Economic Model of Welfare Stigma 1996Labor Supply Response to the Earned Income Tax Credit 2001Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers 1998A Structural Model of Multiple Welfare Program Participation and Labor Supply 1992Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs 2000The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements

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2013School Inputs, Household Substitution, and Test Scores 2010Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence 2011Work incentives and the Food Stamp Program 2003The Negative Income Tax and the Evolution of U.S. Welfare Policy 2011Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?2012

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