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Work Requirements and Long‐Term Poverty

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  • FRED SCHROYEN
  • GAUTE TORSVIK

Abstract

We study how work requirements can be used to target transfers to the long‐term poor. Without commitment, time consistency requires all screening measures to be concentrated in the first phase of the program. We show that this increases the effectiveness of workfare; it is optimal to use work requirements for a wider range of prior beliefs about the size of the poor population, and work requirements are used more intensively. We compare these results with the optimal policy under commitment.

Suggested Citation

  • Fred Schroyen & Gaute Torsvik, 2005. "Work Requirements and Long‐Term Poverty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(3), pages 427-448, August.
    • Handle: RePEc:bla:jpbect:v:7:y:2005:i:3:p:427-448
    DOI: 10.1111/j.1467-9779.2005.00211.x
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    References listed on IDEAS

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    1. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, April.
    2. Fred Schroyen & Gaute Torsvik, 2005. "Work Requirements and Long‐Term Poverty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(3), pages 427-448, August.
    3. Schroyen, F. & Torsvik, G., 2001. "Sticks and Carrots for the Alleviation of Long Term Poverty," Norway; Department of Economics, University of Bergen 2001, Department of Economics, University of Bergen.
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    Cited by:

    1. Lohse Tim, 2014. "The Objections against Workfare Revised," Review of Economics, De Gruyter, vol. 65(1), pages 95-118, April.
    2. Fred Schroyen & Gaute Torsvik, 2005. "Work Requirements and Long‐Term Poverty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(3), pages 427-448, August.

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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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