Making Work Pay


Book Description

Since its inception under President Ford in 1975, the Earned Income Tax Credit (EITC) has become the largest antipoverty program for the non-elderly in the United States. In 1998, more than nineteen million families received EITC payments, and the program lifted over four million Americans above the poverty line. Despite the rapid growth of the EITC throughout the 1990s, little has been written about how the program works or how it affects low-income families. Making Work Pay provides the first full-scale examination of the EITC, exploring its effects on income distribution, poverty, work, and marriage. Making Work Pay opens with a history of the EITC—its emergence in the 1970s as a pro-work, low-cost antipoverty program and its expansion through the 1980s and 1990s. The central chapters in the volume look at the substantial impact of the EITC on work incentives in recent years and show that the program, in combination with welfare reform and a strong economy, has led to an unprecedented increase in the employment of single mothers. In one study, researchers conclude that the EITC—with its stipulation that one family member be a wage earner—was the most important change in work incentives for single mothers between 1984 and 1996, a period when the employment rate of single mothers rose sharply. Several chapters outline proposals for reforming the program, addressing the concerns by policymakers about the work disincentives that rise as benefits fall with increasing income. Finally, Making Work Pay examines how EITC recipients view the credit and what they do with it once they get it. The contributors find that not only does EITC's lump-sum payment increase consumption but it also allows recipients to make changes in economic status. Many families use the end-of-the-year payment as a form of forced savings, enabling them to save for home improvement, a new car, or other purchases to improve their lives, and providing the extra economic cushion needed to move beyond mere day-to-day survival. Comprehensive in scope, Making Work Pay is an indispensable resource for policymakers, administrators, and researchers seeking to understand the ramifications of the country's largest programs for aiding the working poor.




Handbook of Labor Economics


Book Description

A guide to the continually evolving field of labour economics.




Household labor supply and social protection: Evidence from Pakistan’s BISP cash transfer program


Book Description

Cash transfers are a key component of social protection policy in many developing countries. Yet many policymakers are concerned that continued receipt of such transfers may have unintended consequences, such as a reduction in labor supply when household income rises. We study this question by evaluating the impact of Pakistan’s Benazir Income Support Program(BISP), a cash transfer program targeted to poor, married women,on male and female labor supply. The BISP was implemented via a mechanism that reliedon a poverty score cutoff to determine eligibility, allowing for the identification of causal impacts using regression discontinuity. We find no impacts on household labor supply in the aggregate. When we break up estimates by gender, we find littleevidence of a changein female labor supply, strongevidence of increased male labor supply, and no evidence of changes to child labor. Hence, policy makers should not be concerned that BISP transfers negatively affect labor supply among recipients.




Labor Supply and Taxation


Book Description

Presents Richard Blundell's outstanding research on the modern economic analysis of labour markets and public policy reforms and brings together, in revised and integrated form, a number of the author's key papers.




A Roadmap to Reducing Child Poverty


Book Description

The strengths and abilities children develop from infancy through adolescence are crucial for their physical, emotional, and cognitive growth, which in turn help them to achieve success in school and to become responsible, economically self-sufficient, and healthy adults. Capable, responsible, and healthy adults are clearly the foundation of a well-functioning and prosperous society, yet America's future is not as secure as it could be because millions of American children live in families with incomes below the poverty line. A wealth of evidence suggests that a lack of adequate economic resources for families with children compromises these children's ability to grow and achieve adult success, hurting them and the broader society. A Roadmap to Reducing Child Poverty reviews the research on linkages between child poverty and child well-being, and analyzes the poverty-reducing effects of major assistance programs directed at children and families. This report also provides policy and program recommendations for reducing the number of children living in poverty in the United States by half within 10 years.




Economics of the Family


Book Description

This book provides a comprehensive, modern, and self-contained account of the research in the growing area of family economics. It is intended for graduate students in economics and for researchers in other fields interested in the economic approach to the family.




Aspects of Labor Economics


Book Description




Handbook of the Economics of Population Aging


Book Description

Handbook of the Economics of Population Aging synthesizes the economic literature on aging and the subjects associated with it, including social insurance and healthcare costs, both of which are of interest to policymakers and academics. These volumes, the first of a new subseries in the Handbooks in Economics, describe and analyze scholarship created since the inception of serious attention began in the late 1970s, including information from general economics journals, from various field journals in economics, especially, but not exclusively, those covering labor markets and human resource issues, from interdisciplinary social science and life science journals, and from papers by economists published in journals associated with gerontology, history, sociology, political science, and demography, amongst others. - Dissolves the barriers between policymakers and scholars by presenting comprehensive portraits of social and theoretical issues - Synthesizes valuable data on the topic from a variety of journals dating back to the late 1970s in a convenient, comprehensive resource - Presents diverse perspectives on subjects that can be closely associated with national and regional concerns - Offers comprehensive, critical reviews and expositions of the essential aspects of the economics of population aging




Labor's Love Lost


Book Description

Two generations ago, young men and women with only a high-school degree would have entered the plentiful industrial occupations which then sustained the middle-class ideal of a male-breadwinner family. Such jobs have all but vanished over the past forty years, and in their absence ever-growing numbers of young adults now hold precarious, low-paid jobs with few fringe benefits. Facing such insecure economic prospects, less-educated young adults are increasingly forgoing marriage and are having children within unstable cohabiting relationships. This has created a large marriage gap between them and their more affluent, college-educated peers. In Labor’s Love Lost, noted sociologist Andrew Cherlin offers a new historical assessment of the rise and fall of working-class families in America, demonstrating how momentous social and economic transformations have contributed to the collapse of this once-stable social class and what this seismic cultural shift means for the nation’s future. Drawing from more than a hundred years of census data, Cherlin documents how today’s marriage gap mirrors that of the Gilded Age of the late-nineteenth century, a time of high inequality much like our own. Cherlin demonstrates that the widespread prosperity of working-class families in the mid-twentieth century, when both income inequality and the marriage gap were low, is the true outlier in the history of the American family. In fact, changes in the economy, culture, and family formation in recent decades have been so great that Cherlin suggests that the working-class family pattern has largely disappeared. Labor's Love Lost shows that the primary problem of the fall of the working-class family from its mid-twentieth century peak is not that the male-breadwinner family has declined, but that nothing stable has replaced it. The breakdown of a stable family structure has serious consequences for low-income families, particularly for children, many of whom underperform in school, thereby reducing their future employment prospects and perpetuating an intergenerational cycle of economic disadvantage. To address this disparity, Cherlin recommends policies to foster educational opportunities for children and adolescents from disadvantaged families. He also stresses the need for labor market interventions, such as subsidizing low wages through tax credits and raising the minimum wage. Labor's Love Lost provides a compelling analysis of the historical dynamics and ramifications of the growing number of young adults disconnected from steady, decent-paying jobs and from marriage. Cherlin’s investigation of today’s “would-be working class” shines a much-needed spotlight on the struggling middle of our society in today’s new Gilded Age.