Labor Supply and Targeting in Poverty Alleviation Programs.
The introduction of variable labor supply raises some fundamental issues in analyzing the targeting of poverty alleviation programs in developing countries. It forces a reconsideration of the standard objective function, which is based on income or expenditure and so makes no allowance for the effort made in earning that income. We show that alternative views on the appropriate valuation of effort have very different implications for commodity-based targeting rules. We also establish a benchmark for marginal effective tax rates (inclusive of benefit withdrawal) in income-tested schemes and show that indicator targeting rules may also have to be modified significantly when labor supply responses are recognized. Copyright 1994 by Oxford University Press.
Year of publication: |
1994
|
---|---|
Authors: | Kanbur, Ravi ; Keen, Michael ; Tuomala, Matti |
Published in: |
World Bank Economic Review. - World Bank Group. - Vol. 8.1994, 2, p. 191-211
|
Publisher: |
World Bank Group |
Saved in:
Saved in favorites
Similar items by person
-
Optimal Non-Linear Income Taxation for the Alleviation of Income Poverty
Kanbur, Ravi, (1990)
-
Labor supply and targeting in poverty alleviation programs
Kanbur, Ravi, (1992)
-
Optimal non-linear income taxation for the alleviation of income poverty
Kanbur, Ravi, (1990)
- More ...