Why do welfare programs create work disincentives

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Reference no: EM132181635

Question: 1. What happens to the probability that a particular person works when the wage rises? Does such a wage increase generate an income effect?

2. Why do welfare programs create work disincentives?

3. Why does the earned income tax credit increase the labor force participation rate of targeted groups? 4. Why have average hours worked per week declined?

5. Why did the labor force participation rate of women increase so much in the past century?

Reference no: EM132181635

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