This paper examines the effect on a measure of social welfare of an in-work payment, involving a discontinuity at an hours threshold. Social welfare is defined in terms of individuals' utilities, which depend on leisure and net income. The in-work payment augments a modified minimum income...

This paper examines the generation of earnings distributions using a labour supply framework in which individuals face piecewise-linear budget constraints. The possible implications for the distribution of earnings within a population consisting of single individuals having a joint distribution...