Ortigueira, Salvador; Siassi, Nawid - 2021
We characterize the optimal reform of U.S. income support for low-income single parents. We develop a heterogeneous … tagged by the single mothers' life stage, the optimal reform calls for an increase in out-of-work income support by 11 … percent, from $6,320 to $7,080, and a decrease in the wage subsidy to low-wage workers from 34 to 22 percent. This reform …