内容正文:
EXPENDITURE PROGRAMS FOR THE POOR
Chapter 13
1
A Quick Look at Welfare Spending
Means-tested
Cash versus in-kind assistance
Anti-poverty impact of non-means-tested programs
Federal Expenditures on Major Need-Tested Programs (2009)
Program Federal Expenditures ($)
Health 319.3
Cash aid 129.6
Food assistance 77.5
Housing and development 59.9
Education 58.2
Social Services 44.3
Energy assistance 10.3 Source: Spar [2011,p.9]
Employment and training 8.6
13-2
2
TANF
Aid to Families with Dependent Children (1935-96)
TANF-Temporary Assistance for Needy Families (1996-?)
No entitlement
Time limits
Work requirement
Fixed $ Block grants to states
States have much flexibility and authority over structure of their welfare system
Benefit reduction rates
13-3
3
Work Incentives
B = G – tE
B = 0 if E = G/t
Challenge:
How to provide an adequate income support program while minimizing work disincentives?
0
The Basic Trade-offs
G – basic grant if not working
t – rate at which grant reduced when recipient earns money
B – benefit received
13-4
4
the higher G, the higher t
higher G or lower t leads to a higher breakeven E which raises the costs of the system and includes more people
w
Analysis of Work Incentives
Hours of leisure per month
Income per month
0
T
a
D
|Slope| = w
b
c
2w
13-5
Time endowment
5
Analysis of Work Incentives
Hours of leisure per month
Income per month
0
T
D
|Slope| = w
i
ii
iii
E1
F
G
13-6
Income
Leisure
Work
6
Analysis of Work Incentives
Hours of leisure per month
Income per month (= earnings + transfers)
0
T
D
|Slope| = w
Q
F
S
$100
|Slope| = 3/4w
K
13-7
Hours after TANF
Hours before TANF
7
Analysis of Work Incentives
Hours of leisure per month
Income per month (= earnings + transfers)
0
T
D
P
F
G
$338
R
P1
Budget constraint with t = 100%
S
0 hours of work selected
13-8
8
Analysis of Work Incentives
Hours of leisure per month
Income per month (= earnings + transfers)
0
T
D
P
M
R
E2
13-9
Hours worked
9
Work Requirements
When welfare r