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| Author: | Michalopoulos, C. Robins, P.K. Card, D. |
| Title: | When financial work incentives pay for themselves: evidence from a randomized social experiment for welfare recipients |
| Journal: | Journal of Public Economics
2005 : JAN, VOL. 89:1, p. 5-29 |
| Index terms: | Pay Hours of work Labour Supply Welfare |
| Language: | eng |
| Abstract: | This paper summarizes early findings from a social experiment providing financial incentives (hereafter as: fin-incs./fin-inc.) for new welfare recipients to leave welfare and work full time. The fin-inc. was essentially a negative income tax with a requirement of people working at least 30 hrs. a week. Early results show that the fin-inc. increased full-time employment, earnings, and income, and reduced poverty. Furthermore, at the end of the period, the program was paying for itself through increased tax revenues. |
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