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| Author: | Williamson Hoynes, H. |
| Title: | Welfare transfers in two-parent families: labor supply and welfare participation under AFDC-UP |
| Journal: | Econometrica
1996 : MAR, VOL. 64:2, p. 295-332 |
| Index terms: | ECONOMETRICS WELFARE TRANSFER PRICING |
| Language: | eng |
| Abstract: | This paper examines the effect of cash transfers and food stamp benefits on family labor supply and welfare participation among two-parent families. The Aid to Families with Dependent Children - Unemployed Parent Program has provided cash benefits to two-parent households since 1961. Despite recent expansions, little is known about the program's effect on labor supply and welfare participation. The author develops a model of family labor supply in which hours of work for the husband and wife are chosen to maximize family utility subject to a family budget constraint accounting for AFDC-UP benefits and other tax and transfer programs. |
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