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Unformatted text preview: Use labor/leisure tradeoff (Moffitt) SEE FIGURES A-E IN BINDER Welfare Reform By early 1990s, welfare programs under attack from many people Disincentives to work very strong (though EITC, Medicaid changes already starting to work) Also clear that propensity to choose welfare was being passed from one generation to anotherintergenerational transmissions Led to sharp change in mid-1990s; having a child became an insufficient reason for continuous welfare Question Has this been a success, or are lots of people worse off than before? In bottom 20% of income, families with children have seen strong income gains Mostly because of earnings/EITC...
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This note was uploaded on 04/28/2008 for the course ECON 401 taught by Professor Sabelhaus during the Spring '08 term at Maryland.
- Spring '08