The theory of labor supply is analyzed with special attention to the relation between labor supply and unemployment. Techniques for simulating the effects of transfer programs are developed. The literature on the supply of hours and the effects of income taxes, Social Security, and public assistance is reviewed. Supply functions for those age 25…

The article offers a brief history of past income-maintenance programs summarizes a unique income-maintenance experiment, describes present welfare programs, and lists the unanswered questions in welfare reform. (Income maintenance for intact families at levels employed in the study would not have large effects on labor supply, concluded…

The model deals with channels through which income transfer programs are likely to affect working hours of family members and a method of estimating the labor-supply reactions to income maintenance programs. Labor-supply effects are functions of the duration of a family's participation and the relevant importance of male market investment.…

An empirical analysis of the effects of alternative income maintenance programs, The Survey of Economic Opportunity, was used to obtain estimates of the labor supply parameters required to assess the implications of these programs for hours of work of male family heads. Labor supply response to changes in the family heads' net wages and in family…

Static and dynamic incentive effects of the following fiscal transfer forms are examined: income subsidy (negative income tax), wage subsidy, categorical income subsidy (work requirement), and overtime wage subsidy. Budgetary costs, aggregate labor-market impacts, and welfare effects are analyzed. A program for categorically combining wage and…

While static economic theory predicts that most income transfer programs will lead to reductions in the labor supply of program beneficiaries, the theory has nothing to say about the magnitude of such reductions. In order to predict the magnitude of such reductions, the labor supply schedule of potential beneficiaries must be known. In previous…

The Family Assistance Plan and the President's Commission on Income Maintenance Programs are both proposals which incorporate a negative income tax provision and which are aimed at reforming the present welfare system. This study is concerned with the effect these proposed income supplements will have on work decisions of male heads of families in…

While static economic theory predicts that most income transfer programs will lead to reductions in the labor supply of program beneficiaries, the theory has nothing to say about the magnitude of such reductions. In order to predict the magnitude of such reductions the labor supply schedule of potential beneficiaries must be known. In three…

A study to determine the effects of free counseling services and a program of subsidies for the direct costs of education and training revealed that the subsidies did induce increased school attendance, and both counseling and training affected labor supply. However, no subsequent effects of increased human capital have been found. (LRA)

The standard one-period labor supply model that economists have used is in some ways an inadequate tool to evaluate a Family Assistance Plan (FAP). The principal difficulty is that an FAP will have important interperiod or life cycle effects. The pure life cycle model, an extension of the work of Becker and Ghez, is derived here without reference…