(
课件网) EXPENDITURE PROGRAMS FOR THE POOR Chapter 13 A Quick Look at Welfare Spending Means-tested Cash versus in-kind assistance Anti-poverty impact of non-means-tested programs Federal Expenditures on Major Need-Tested Programs (2009) Program Federal Expenditures ($) Health 319.3 Cash aid 129.6 Food assistance 77.5 Housing and development 59.9 Education 58.2 Social Services 44.3 Energy assistance 10.3 Source: Spar [2011,p.9] Employment and training 8.6 13-* TANF Aid to Families with Dependent Children (1935-96) TANF-Temporary Assistance for Needy Families (1996- ) No entitlement Time limits Work requirement Fixed $ Block grants to states States have much flexibility and authority over structure of their welfare system Benefit reduction rates 13-* Work Incentives B = G – tE B = 0 if E = G/t Challenge: How to provide an adequate income support program while minimizing work disincentives 0 The Basic Trade-offs G – basic grant if not working t – rate at which grant reduced when recipient earns money B – benefit received 13-* w Analysis of Work Incentives Hours of leisure per month Income per month 0 T a D |Slope| = w b c 2w 13-* Time endowment Analysis of Work Incentives Hours of leisure per month Income per month 0 T D |Slope| = w i ii iii E1 F G 13-* Leisure Work Analysis of Work Incentives Hours of leisure per month Income per month (= earnings + transfers) 0 T D |Slope| = w Q F S $100 |Slope| = 3/4w K 13-* Hours after TANF Hours before TANF Analysis of Work Incentives Hours of leisure per month Income per month (= earnings + transfers) 0 T D P F G $338 R P1 Budget constraint with t = 100% S 0 hours of work selected 13-* Analysis of Work Incentives Hours of leisure per month Income per month (= earnings + transfers) 0 T D P M R E2 13-* Hours worked Work Requirements When welfare recipient can’t choose work hours Workfare: able-bodied individuals receive income-support only if they agree to participate in a work-related activity TANF Mandated work 13-* TANF Characteristics Time Limits Lifetime Per spell of welfare Family Structure Marriage Childbearing Empirical results as to whether TANF affected the structure of low-income families 13-* National versus State Administration Does State Administration create a Race to the Bottom State Administration allows state experimentation 13-* Other Benefit Programs for the Poor Earned Income Tax Credit 2012 for a single parent with two children 13-* Other Benefit Programs for the Poor Earned Income Tax Credit 13-* Empirical Evidence: The Effect of the Earned Income Tax Credit on Labor Supply Labor force participation Work hours 13-* Other Benefit Programs for the Poor Supplemental Security Income: Federal program for aged, blind, disabled. SSI vs. conventional welfare Uniform minimum federal guarantee Benefit levels Work incentives Medicaid How Medicaid works Work disincentives: Medicaid Notch 13-* The Medicaid Notch Hours of leisure per year Inc ... ...
