Canada emergency response benefits

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Many provinces in Canada allow welfare recipients to earn a small amount of labor market earnings, say X, before the tax-back of welfare benefits, begins.

a) Assuming a 100% clawback rate for labor market earnings above this threshold X. Illustrate such welfare program in an income-leisure choice diagram.

b) Last March 2020, the federal government introduced CERB (Canada Emergency Response Benefits) in response to public health restrictions imposing a countrywide lockdown and theshutdown of all face-to-face services. Describe the parameter of the program and how it worked?

c) Based on the information provided in b), draw the CERB program in terms of an income leisure choice diagram

Reference no: EM133080822

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