Welfare Reform and the Labor Market

Marc Chan and Robert Moffitt

No 24385, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper reviews the basic theoretical models that are appropriate for analyzing different types of welfare reforms, and the related empirical literature. We first present the canonical labor supply model of a classical welfare program, and then extend this basic framework to include in-kind transfers, incomplete take-up, human capital, preference persistence, and borrowing and saving. The empirical literature on these models is presented. The negative income tax, earnings subsidies, US welfare reforms with features that differ from those in other countries, and child care reforms are then surveyed both in terms of the theoretical model and the empirical literature surrounding each.

JEL-codes: I3 J22 (search for similar items in EconPapers)
Date: 2018-03
New Economics Papers: this item is included in nep-lma and nep-ltv
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Citations: View citations in EconPapers (18)

Published as Marc K. Chan & Robert Moffitt, 2018. "Welfare Reform and the Labor Market," Annual Review of Economics, vol 10(1), pages 347-381.

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