Over 18 million taxpayers are projected to receive the Earned Income Tax Credit (EITC) in tax year 1997, at a total cost to the federal government of about 25 billion dollars. The EITC is refundable, so any amount of the credit exceeding the family’s tax liability is returned in the form of a...

This paper examines the role of local labor markets in determining how long families receive benefits from the Aid to Families with Dependent Children (AFDC) program. Given the current policy emphasis on devolution and reducing the AFDC caseload through employment, understanding the role of...

An issue central to the life-cycle theory of consumer behavior, and to many policy questions, is asset accumulation and decumulation. One of the main implications of the life-cycle model is that assets are decumulated in the last part of life. Most empirical studies of asset accumulation use...

During the last thirty years, the composition of white and black families in the United States has changed dramatically. In 1960, less than 10 percent of families with children were headed by a single mother, while in 1990 more than 20 percent of families with children were female-headed...

The Social Security Disability Insurance (SSDI) Program has long been criticized by economists for its apparent work disincentives stemming from the imposition of 100 percent tax rates on earnings. However, the program has been modified in recent years to allow recipients to keep some of their...

Support for reforming the welfare system in the United States is widespread, as evidenced by legislative action by many states and, most recently, the federal government. Although part of the interest in reform is fiscally motivated, interest also exists in making significant changes to address...