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Incentive Effects of Welfare Transfers in Two-Parent Families: An Evaluation Using Experimental Data
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IZA Seminar |
Place: Schaumburg-Lippe-Str. 9, 53113 Bonn |
Date: 18.06.2002, 12:00 - 13:30 |
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Presentation by |
Eric Maurin
(Paris School of Economics)
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Abstract: |
What are the effects of providing assistance to intact families when the principal earner is
unemployed and denying it when s/he is employed? The existing literature suggests that this
practice has strong work-disincentive effects and favors persistent unemployment and welfare
dependency. In this paper we reassess this thesis using new US experimental data. Our
findings differ from predictions based on survey data and simulations. Targeting assistance to
families with an unemployed principal earner has only very limited disincentive impacts on
families’ work effort and actually lowers the welfare caseload. |
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Download complete paper  |
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For more information, please contact seminar@iza.org
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