NBER

Marc K. Chan

University of Melbourne
Level 4, FBE Building
111 Barry Street
Carlton VIC 3010
Australia

E-Mail: marc.chan@unimelb.edu.au
Institutional Affiliation: University of Melbourne

NBER Working Papers and Publications

March 2018Welfare Reform and the Labor Market
with Robert A. Moffitt: w24385
This paper reviews the basic theoretical models that are appropriate for analyzing different types of welfare reforms, and the related empirical literature. We first present the canonical labor supply model of a classical welfare program, and then extend this basic framework to include in-kind transfers, incomplete take-up, human capital, preference persistence, and borrowing and saving. The empirical literature on these models is presented. The negative income tax, earnings subsidies, US welfare reforms with features that differ from those in other countries, and child care reforms are then surveyed both in terms of the theoretical model and the empirical literature surrounding each.

Published: Marc K. Chan & Robert Moffitt, 2018. "Welfare Reform and the Labor Market," Annual Review of Economics, vol 10(1), pages 347-381. citation courtesy of

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