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The Labor Supply of Female Household Heads, or AFDC Work Incentives Don't Work Too Well

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  • Frank Levy

Abstract

This paper presents an approximate method for estimating the labor supply function of female household heads who may or may not be receiving Aid to Families with Dependent Children (AFDC). Estimation results indicate that any AFDC parameter change which increases a program's breakeven income will reduce expected hours of work in the population. In particular, liberalized work incentives may encourage current recipients to increase labor supply, but these increases will be more than offset by work reductions of former nonrecipients who are now attracted onto the program.

Suggested Citation

  • Frank Levy, 1979. "The Labor Supply of Female Household Heads, or AFDC Work Incentives Don't Work Too Well," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 76-97.
    • Handle: RePEc:uwp:jhriss:v:14:y:1979:i:1:p:76-97
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    Cited by:

    1. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    2. Richard Cebula & Christopher Coombs, 2008. "Recent Evidence on Factors Influencing the Female Labor Force Participation Rate," Journal of Labor Research, Springer, vol. 29(3), pages 272-284, September.
    3. Fortin, Bernard, 1997. "Dépendance à l’égard de l’aide sociale et réforme de la sécurité du revenu," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(4), pages 557-573, décembre.
    4. Alan S Duncan & Mark N Harris & Anthony Harris & Eugenio Zucchelli, 2013. "The Influence of Psychological Well-being, Ill Health and Health Shocks on Single Parents' Labour Supply," Bankwest Curtin Economics Centre Working Paper series WP1307, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    5. Hoynes, Hilary Williamson & Moffitt, Robert, 1999. "Tax Rates and Work Incentives in the Social Security Disability Insurance Program: Current Law and Alternative Reforms," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(4), pages 623-654, December.
    6. Barbara L. Wolfe, 1985. "Cutbacks in Disability Transfer Programs," Evaluation Review, , vol. 9(3), pages 263-280, June.
    7. Christopher B. Colburn, 1993. "Work Requirements and Income Transfers," Public Finance Review, , vol. 21(2), pages 141-162, April.
    8. Michael P. Keane, 1995. "A new idea for welfare reform," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 19(Spr), pages 2-28.
    9. H. Hoynes & R. Moffitt, "undated". "The effectiveness of financial work incentives in DI and SSI: Lessons from other transfer programs," Institute for Research on Poverty Discussion Papers 1073-95, University of Wisconsin Institute for Research on Poverty.
    10. H. W. Hoynes, "undated". "Work, Welfare, and Family Structure: A Review of the Evidence," Institute for Research on Poverty Discussion Papers 1103-96, University of Wisconsin Institute for Research on Poverty.
    11. Lennart Flood & Jörgen Hansen & Roger Wahlberg, 2004. "Household Labor Supply and Welfare Participation in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    12. Long, D. A., 2001. "From support to self-sufficiency: how successful are programs in advancing the financial independence and well-being of welfare recipients?," Evaluation and Program Planning, Elsevier, vol. 24(4), pages 389-408, November.
    13. Flood, Lennart & Pylkkänen, Elina & Wahlberg, Roger, 2003. "From Welfare to Work: Evaluating a Proposed Tax and Benefit Reform Targeted at Single Mothers in Sweden," Working Papers in Economics 107, University of Gothenburg, Department of Economics.
    14. Ermisch, John F. & Wright, Robert E., 1995. "Lone parenthood and employment: male-female differences in Great Britain," Labour Economics, Elsevier, vol. 2(3), pages 299-317, September.
    15. Carole Miller & Jing Xiao, 1999. "Effects of birth spacing and timing on mothers' labor force participation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(4), pages 410-421, December.
    16. Laurie J. Bassi, 1987. "Training the Disadvantaged," Evaluation Review, , vol. 11(4), pages 493-509, August.
    17. Philip de Jong & Robert Haveman & Barbara Wolfe, 1988. "Labor and Transfer Income and Older Women's Work: Estimates From the United States," NBER Working Papers 2728, National Bureau of Economic Research, Inc.
    18. Gary Painter, 1999. "Low-Income Housing Assistance: Its Impact on Labor Force and Housing Program Participation," Working Paper 8667, USC Lusk Center for Real Estate.

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