Reform represent a trade off between equity and efficiency

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Reference no: EM13801641

In 1997 the Government of Ontario reformed that province’s welfare system. The reform reduced the amount of welfare payments to a person with no income, but also allowed welfare recipients to keep a larger part of their welfare payments if they did earn some income.

a. How does this reform affect the incentive to work?

b. How might this reform represent a trade off between equity and efficiency?

Reference no: EM13801641

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